European Commission and the US announcement on basic principles of new trans-atlantic framework to replace Privacy Shield

The research and development (“R&D”) allowance is a tax allowance that can reduce an organization’s corporate income tax base. R&D activity differs from other common business activities by the presence of an appreciable element of novelty as well as research and technical uncertainty. But the fact that the element of novelty and research and technical uncertainties are not sufficiently defined in Czech legislation was confirmed by the Supreme Administrative Court back in 2015 (decision no. 10 Afs 24/2014-119 dated 11 June 2015). The Supreme Administrative Court also stipulated that correct application of these concepts may change depending on circumstances.