Slovak companies are not very interested in the possibility of reducing their tax bases by investing into research and development. Only about 50 firms have utilised the measure which came into force in 2015, according to Kristína Šumichrastová, head of the consulting company Alma CG.
“We register the interest of companies, but the legislative definition, which is not very clear, is an obstacle,” Šumichrastová said, as quoted by the TASR newswire.
She also considers the percentage by which the companies can reduce their tax base lower than in neighbouring countries. While Slovak companies can deduct 25 percent of their expenses on R&D, in the Czech Republic it is 100 percent. As a result, Slovak companies save 5.5 percent on their expenses, which is four times less than in the Czech Republic.
“This is not a very competitive amount for supporting R&D,” Šumichrastová said, as quoted by TASR, adding that the Visegrad Group (V4) countries are expected to compete for investments in this field.
The current rate should increase as it only favours big companies that can put more money into R&D, she continued.
Slovakia invests only 1.2 percent of its GDP into R&D every year, which is among the lowest sums in the EU. Slovakia should support higher investments into R&D in the private sector as it lags behind its EU neighbours in this area as well, Šumichrastová said.
“Supporting R&D via tax stimuli is important particularly for the future,” she continued, as quoted by TASR. “It should gradually substitute the declining European subsidies which were originally expected to support competitiveness.”
26. Oct 2016 at 5:30 | Compiled by Spectator staff