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Czech Republic: Changes in R&D allowances effective January 1, 2026

Several fundamental changes in research and development R&D allowances

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December 9, 2025

Several fundamental changes in research and development (R&D) allowances are being introduced by an amendment that will be effective on January 1, 2026. 

These mainly concern the method of calculating the allowance and the deadline for claiming it. However, the parameters for supporting the allowance, such as proving wage costs listed in separate records, remain unchanged.

The most significant change from January 2026 is an increase in the allowance from 100% of R&D expenses incurred to 150%, up to a limit of CZK 50 million. However, this limit includes not only the expenses of the company in question but also the expenses of all taxpayers who are part of the same allowance group (i.e., the controlling entity and entities controlled by it alone or jointly with another entity). 

At the same time, the deadline for claiming the allowance has been extended from three to five years. Along with this extension, the condition that claiming the allowance can only be postponed due to a low tax base or a tax loss has been abolished.

Read a December 2025 report prepared by the KPMG member firm in the Czech Republic

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