Question for Accountants on R&D Credit

Business Money
1

According to PwC, a business can receive a credit for 15% of R&D expenses, total amount capped at 30% of all taxes.

But for private enterprises, less than 2% of the R&D expenses are sourced from the government. How does that work?

https://wsts.nstc.gov.tw/stsweb/technology/TechnologyDataIndex.aspx?language=E

III-2-1_Business_Enterprise_RD_Expenditure.xlsx (8.4 KB)

I’m on vacation so I don’t have the pen and can’t perform the calculations, but that’s gotta be a whole lot of R&D expenses for the tax credit to be 2% of expenses (or less) if the expenses get a 15% kickback in taxes worth at most 30% of taxes.

Either that, or the numbers don’t include R&D kickbacks and only includes grants.

2

Have you considered borrowing a pen?

3

I don’t want to bother my Airbnb hosts.

4

What is the business that you are advertising in Taiwan?

5

I’m not advertising anything. Just trying to make the data make sense. How can the government account for only 1.5% of the funding when you can get a 15% kickback (up to a certain point).

6

This is the business directory forum

7

I still don’t have a pen.