Research and Development Tax Credit for Software Development

This paper deals with the tax benefits of R&D in software development. The aim of the paper is firstly to reveal the practical challenges and problems of software companies in applying for Research and Development tax credits. As a result, the article proposes solutions to improve the current situation. To achieve the objective, the current state of affairs is identified through analysis and the problems to be solved are described. Given the differences in how tax credits are provided, the subsequent recommendations for improving the current state of affairs are based mainly on a comparison of the different EU Member States on the problematic issues of tax provision. This article, by proposing solutions, can help in particular in the development of new legislation in the field of indirect R&D support. However, it is also a useful basis for tax advisors, attorneys specializing in tax law, owners of small and medium-sized software companies and other individuals who are actively interested in indirect R&D support.