The Ministry of Finance published the Rulebook on conditions and method of exercising the right to recognition of costs directly related to research and development in the tax balance in double increased amount (further: the Rulebook) on 9 July 2019, which entered into force on 20 July 2019, and will be applied on starting from the tax period 2019.
The costs of research and development will be recognized as an expense in the amounts determined in tax balance, in accordance with accounting legislation, and then further presented in the tax balance of the period in which they have appeared.
The taxpayer who exercises the right to recognition of the costs of research and development is obliged to apply for each individual project with a tax balance: description of the project with prominent goals, planned phases of the project, as well as planned activities within every phase of the project, a record of the time each employee spent working on a particular project and a conclusion.
The documentation must be submitted in paper form. Also, the taxpayer is obliged to possess strictly prescribed additional documentation related to the project in the moment of tax balance submission (the budget of the project, purchase plan, the opinion of experts who are responsible for project realization…).
The Rulebook prescribes the obligation for the taxpayer to take the records of the costs of research and development for every project separately, by providing special tax-analytical records in which the costs associated with research and development activities are presented (for example, a certain tax-analytical record in which the costs of salaries are presented, salaries and other personal expenditures related to employees whose activities are connected to the activities of research and development, but only to the extent they are related to research and development).