R&D Outside India?

Do you have R&D facility outside India and looking to avail tax benefits and funding for the same?

If your company has a subsidiary or a Joint Venture with a local company outside or a fully owned local company outside India and carrying out any kind of development of technology, design or product or technology transfer wherein the technology is being provided by the foreign entity you may be eligible for R&D incentives in the country of your operation.

Also if you are into software development, robotics, AI or machine learning systems research even those qualify for R&D incentives.

There are more than 50 countries globally which provide R&D incentives which range from 125% to 400% of the R&D expenses incurred in the form of tax credit, cash payout and other form of benefits such as lower local taxes / compliance, hassle free imports and partnerships with prestigious institutions.

Also in most of the countries unlike India you don't need to undergo certification process for applying and availing R&D incentives. Such incentives are provided for specific R&D projects and not for the physical set up which is the case in India making it friendly to avail incentives as also the process hassle free.

"Please get in touch with our BD Head, Rajesh Ravindranath on India Number: +91-9962696204 | USA Number +1(917)338-0308 or send a mail to letstalk@scinnovation.in or visit our global R&D Incentives website www.rndincentives.com and we would be happy to help you."

FAQs

Indian companies incorporated outside India in most major economies can avail R&D incentives which are provided in the form of tax credit which means lower corporate tax pay-out, direct pay-out or other forms of incentives such as lower local taxes or compliance. In some countries such as Singapore if the company is registered there and research is carried outside Singapore one can still claim the R&D incentives.

Absolutely, most countries treat software or companies engaged in ICT business on the same lines as other manufacturing companies and one can avail incentives for new software development, creating Artificial Intelligence tools, utilizing blockchain technologies for new applications, etc.

This is one of the key concerns of a company which has already invested in R&D either in the form of equipment, labs or incurred operating expenses for running R&D activities. Each country has a different policy with regards to R&D expenses incurred in the past but principally it is possible to claim the same in a lot of cases. In some countries, only capital expenditure is claimable excluding operational costs. In the UK spenders can claim incentives for the research & development done in the preceding two years.

Well, this is one of the most asked question and an important one to clarify. R&D covers what is not known to an expert working in a particular field for which one needs to find a feasible way to solving the problem which can be then implemented by the company in the form of product improvement, new product launch, cost reduction, ensuring compliance with new environmental norms and such projects necessitated to sustain and grow the company.

The form of approval for R&D benefit varies depending on which country you are applying to and the benefits you are getting. In some countries, the approval is issued by mean of granting an order of Certification. In countries like the UK, one can expect R&D tax credit payments in their company’s account as approval.

DSIR


Scinnovation Consultants Pvt. Ltd. (SCPL) is glad to share its expertise in helping a manufacturing company to extract R&D from its facilities and structure it to make it DSIR compliant and then put together the application in a seamless manner to help you avail recognition and approval.

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