Investments to research and development made easier

Entrepreneurs, who invest in research and development, can apply from January 1 of this year for a so-called super deduction of costs related to research and development. The measure is introduced in the amendment to the Income Tax Act, which Parliament approved at the end of October last year. In line with the approved changes entrepreneurs will be able to apply for - in addition to their real costs spent on research and development - an additional 25 percent of these real costs. This will include 25 percent of the wage expenses of newly hired graduates from secondary schools and universities in the first year of the employment contract, and 25 percent of the year-on-year growth in research and development costs. "We are aware that Slovakia no longer can be a country that will be dependent only on assembly work or having a cheaper labour force than other countries, so we have to bring many new ideas. We want to encourage businesses that have their research and scientific base to continue more intensively", said the Prime Minister Robert Fico, adding that he is not concerned about the risk of possible misuse of the measure by some businesses.