{"id":3274,"date":"2024-11-18T12:15:06","date_gmt":"2024-11-18T12:15:06","guid":{"rendered":"https:\/\/vemarplus.hr\/?p=3274"},"modified":"2025-01-03T09:50:51","modified_gmt":"2025-01-03T09:50:51","slug":"dp-iri-izmjene-2024","status":"publish","type":"post","link":"https:\/\/vemarplus.hr\/en\/2024\/11\/18\/dp-iri-izmjene-2024\/","title":{"rendered":"Amendments to the State Aid for Research and Development Projects Act"},"content":{"rendered":"

Amendments to the R&D State Aid Act Effective 1 January 2025<\/h2><\/div>

In addition to the recent amendments to <\/span>the Investment Promotion Act<\/b> (covered in a separate post), the new State Aid for Research and Development Projects Act (R&D State Aid Act) introduces key changes for companies investing in research and development. Given the legal uncertainty that will characterise the first few months of 2025, it is advisable to submit project applications before the end of 2024, allowing businesses to take advantage of the current tax relief provisions before the new rules and regulations come into effect. This post covers all the key changes that increase incentives for research and development.<\/span><\/p>\n<\/div>

Key Amendments to the State Aid for Research and Development Projects Act<\/b><\/h3><\/div>

1. Increased Aid Intensity for R&D Projects<\/b><\/h4>\n

The amendments raise the maximum aid intensities, enabling businesses to benefit from significantly higher tax relief. The new maximum amounts are aligned with EU-level regulations, and the absolute maximum aid amounts are as follows:<\/span><\/p>\n

    \n
  • Fundamental research:<\/b>Up to EUR 300,000 (or up to EUR 40 million in specific cases).<\/span><\/li>\n
  • Industrial research:<\/b>Up to EUR 200,000 (up to EUR 20 million in specific cases).<\/span><\/li>\n
  • Experimental development:<\/b>Up to EUR 100,000 (up to EUR 15 million in specific cases).<\/span><\/li>\n
  • Feasibility studies:<\/b>Up to EUR 50,000 (up to EUR 7.5 million in specific cases).<\/span><\/li>\n<\/ul>\n<\/div>

    Alignment with EU Standards and Expanded Definitions<\/b><\/h4>\n

    In order to align with the latest European Commission regulations, the R&D State Aid Act now incorporates expanded definitions of industrial research and experimental development, further broadening the range of businesses eligible for support. The new act also introduces restrictions on eligible project costs and defines additional conditions for companies that may be considered undertakings in difficulty, which is relevant for all aid beneficiaries.<\/span><\/h4>\n<\/div><\/div><\/div>
    <\/span><\/div><\/div><\/div>

    Simplified Administration and Reduced Reporting Costs<\/b><\/h3><\/h2><\/div>

    The process of applying for and reporting on R&D projects has been streamlined, with a clear focus on reducing the administrative burden:<\/span><\/p>\n

      \n
    • Simplified reporting:<\/b>Annual reports will no longer require personnel cost documentation to be submitted multiple times, significantly reducing the administrative workload.<\/span><\/li>\n
    • Extended deadlines:<\/b>Submission deadlines for annual reports will be extended, giving businesses more time for accurate reporting and optimisation of aid utilisation.<\/span><\/li>\n
    • Digital application and reporting platform:<\/b>A new digital platform enables faster and more transparent communication with the relevant authorities.<\/span><\/li>\n<\/ul>\n<\/div>

      Advice for businesses: Submit your projects before the end of 2024. Businesses are strongly advised to submit their R&D project applications before the end of 2024 to secure more favourable conditions and avoid potential risks.<\/h4><\/div>

      Higher Aid Intensities and Increased Maximum Thresholds<\/b><\/h3>\n

      The amendments enable a further increase in aid intensity for industrial research and experimental development, with the tax base deduction percentages for R&D costs doubling. The baseline aid thresholds are now set at:<\/span><\/p>\n

        \n
      • 400% tax base deduction<\/b> for fundamental research costs<\/span><\/li>\n
      • 300% tax base deduction<\/b> for industrial research costs<\/span><\/li>\n
      • 250% tax base deduction<\/b> for experimental development costs<\/span><\/li>\n
      • 300% tax base deduction<\/b> for feasibility study costs<\/span><\/li>\n<\/ul>\n<\/div>

        Submitting Projects in Early 2025<\/h4><\/div>

        The amendments to the State Aid for Research and Development Projects Act open up greater opportunities for companies looking to invest in research and development, while reducing administrative requirements and simplifying the reporting process. Legal uncertainty and the forthcoming implementing regulations for 2025 introduce a degree of risk in the application of the new provisions; however, companies that submit their projects by the end of 2024 can take advantage of more favourable conditions for tax relief and aid, and position themselves ahead of a period of increased support for innovation and research.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":3050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,27],"tags":[29,35,30,28],"class_list":["post-3274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-eu-fondovi","category-porezne-olaksice","tag-drzavne-potpore","tag-dp-iri","tag-porezne-olaksice","tag-porezne-promjene"],"yoast_head":"\nIzmjene Zakona o dr\u017eavnoj potpori za istra\u017eiva\u010dko-razvojne projekte (DP IRI) - 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