Aid for research and development projects is regulated by the Act on State Aid for Research and Development Projects (OG 64\/18, 152\/24)\u00a0and by the Ordinance on State Aid for Research and Development Projects (Official Gazette No. 77\/25), which provides detailed guidance on the procedure for exercising the right to a reduction of the corporate income tax base, the application process, project monitoring and control, as well as other administrative and procedural aspects in accordance with the Act.<\/p>\n
Grantor:<\/strong> Ministry of Economy<\/p>\n Implementing body:<\/strong> Croatian Agency for SMEs, Innovations and Investments – HAMAG BICRO<\/p>\n Beneficiaries:<\/strong> legal and natural persons, taxpayers of profit tax and income tax<\/p>\n Type of aid:<\/strong> tax relief for research and development projects and feasibility studies (reduction of the tax base)<\/p>\n A research and development project includes one or more categories of research: basic research, industrial research and experimental development or feasibility study.<\/p>\n The total highest intensity of support for a particular category of research and development in a research and development project to which the user can exercise the right, on any basis based on this Act, including other legal bases, can be up to:<\/strong> The total amount of support for research and development that the beneficiary may receive per project under this Act is as per the following categories:<\/strong> The maximum total cumulative amount of support for a research and development project that an individual entrepreneur may receive on the basis of this Act and other legal bases is as per the following categories*:<\/strong> *The total amounts may be increased if more than 50% of the research costs\u2014incurred through contracted research, knowledge, and patents purchased or licensed from external sources under market conditions, as well as advisory and similar services used exclusively for the project referred to in Article 4, paragraph 1, point 1 of this Act\u2014are contracted by the entrepreneur with research and knowledge\u2011dissemination organizations.<\/sup><\/p>\n The beneficiary receives support through an additional reduction of the tax base for eligible costs of research and development projects or feasibility studies, in accordance with the regulations on profit tax or income tax, in the following total percentages:<\/strong> Application:<\/strong>\u00a0Entrepreneurs must submit an application for the award of state aid before the start of project activities to the Ministry of Economy, as the aid provider, via the e\u2011Investments<\/a> platform.<\/p>\n
\na) 100% of the amount of eligible project costs for basic research,
\nb) 50% of the amount of eligible project costs for industrial research*,
\nc) 25% of the amount of eligible costs of the project for experimental development*,
\nd) 50% of eligible costs for feasibility studies.**
\n* Aid intensities for industrial research and experimental development may in some cases be increased to a maximum aid intensity of 80% of the eligible costs for industrial research and experimental development.<\/span>
\n** Aid intensities for feasibility studies may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises<\/span><\/p>\n
\na) Predominantly basic research: to a maximum of EUR 300,000.00 per entrepreneur per project,
\nb) Predominantly industrial research: to a maximum of EUR 200,000.00 per entrepreneur per project,
\nc) Predominantly experimental development: to a maximum of EUR 100,000.00 per entrepreneur per project,
\nd) Feasibility studies in the preparation of research activities: to a maximum of EUR 50,000.00 per study.<\/p>\n
\na) Predominantly basic research: to a maximum of EUR 55 million per entrepreneur per project,
\nb) Predominantly industrial research: to a maximum of EUR 35 million per entrepreneur per project,
\nc) Predominantly experimental development: to a maximum of \u00a0EUR 25 million per entrepreneur per project.
\nd) Feasibility studies in the preparation of research activities: to a maximum of EUR 8.25 million per study.<\/p>\n
\na) 400% of eligible project costs for basic research,
\nb) 300% of eligible project costs for industrial research,
\nc) 250% of eligible project costs for experimental development,
\nd) 300% of eligible costs for feasibility study.<\/p>\n