Austria R&D Research Premium

Program Overview

Austria's R&D Research Premium provides a 14% refundable tax credit on eligible R&D expenditures. This premium can be paid out in cash even if the company does not report a profit, making it highly attractive for startups and growing companies investing in innovation.

Tax Credit Details

Credit rate: 14% of eligible R&D costs

Maximum limit: No cap on in-house R&D

Contract research cap: €1 million maximum (€140,000 premium)

Refundability: Cash payout available even without profit

Eligible Costs

Personnel costs for R&D activities

Materials and supplies for research

R&D investments and equipment

Finance costs related to R&D

Overheads for both in-house and contract research

Subcontracted R&D (up to €1M eligible)

How It Works

Example (in-house): €1M R&D costs = €140,000 tax credit (14%)

Example (contract): €1M subcontracted R&D = €140,000 maximum credit

Tax-free benefit: The premium is tax-free

Uncapped potential: No limit on total in-house R&D investment

Qualification Process

FFG expert opinion required: Austrian Research Promotion Agency (FFG) must confirm expenses qualify as R&D

Content review: FFG conducts review to determine R&D qualification

Definition: Must meet standards for research and experimental development

Application Process

Step 1: Conduct qualifying R&D activities

Step 2: Document all R&D costs throughout fiscal year

Step 3: Obtain FFG expert opinion confirming R&D qualification

Step 4: Submit application via FinanzOnline after fiscal year end

Step 5: Receive 14% premium as cash refund or tax credit

Key Advantages

Refundable: Cash payout even for unprofitable companies

Uncapped: No limit on in-house R&D costs

Tax-free: Premium is tax-free

Broad eligibility: Covers personnel, materials, investments, overheads

Annual benefit: Claim every fiscal year

Why Austria

Competitive advantage: Austria stands out for its generous R&D tax incentives

Startup-friendly: Cash payout helps early-stage companies without profits

Innovation hub: Supports Austria's position as leading research location

Contact Information

Qualifying authority: FFG (Austrian Research Promotion Agency)

Application: FinanzOnline

Information: FFG.at, Austrian tax authorities