Legal basis
The possibility of a partial exemption is provided for under article 50 ter of the income tax law.
Eligible assets
Assets eligible for exemption must be patents, supplementary protection certificates, utility models, orphan drugs, copyrights to computer software, plant breeders' rights or other assets constituting an original work.
Research activities
Data concerning research and development activities relating to the creation, development or improvement of the eligible asset must be provided to the administration.
Example
Copyright in computer software must constitute an original work.
This is assessed by analyzing the source code (instructions written in an understandable computer programming language).
Copyright arises from the simple fact of creating the work and the computer software.
Information on the registration office
When applying for a tax exemption, it is necessary to provide information on the date of filing of the registration, the name of the organization, the date of issue and its duration, and the references (number) of the filing.
Determination of research and development expenditure relating to the constitution, development or improvement of the eligible asset.
This information must make it possible to determine eligible expenses and acquisition costs for each financial year.
Determination of the fraction of net income eligible for partial exemption.
This is calculated by multiplying eligible expenditure by 130% and dividing the resulting figure by total expenditure.
Exempt amount
Once the net income has been determined, the result is 80% tax-exempt.