United Kingdom


  • Service: Tax, Corporate Tax
  • Type: Press release
  • Date: 15/11/2012

KPMG produces guide to Research and Development Incentives across Europe, the Middle East and Africa 

  • The UK is one of only four regimes in countries surveyed to offer three types of R&D reliefs or incentives analysed


A new guide from KPMG examines the tax reliefs and incentives available for R&D activities in a number of different countries to assist global businesses’ decision making on where to locate R&D programmes.


KPMG’s 2012 Europe, Middle East and Africa (EMEA) research and development (R&D) incentives guide provides country-specific information that summarises the tax treatment of R&D expenditure, together with specific R&D incentives available throughout KPMG’s EMEA region.  With more countries offering such incentives, global businesses need to be able to evaluate the options available in different jurisdictions, according to David Woodward, head of R&D tax, at KPMG in the UK, who explained:


“An increasing number of governments are offering businesses incentives to increase spending on R&D, as this is considered essential for productivity and for the country’s future economic growth.  Despite reduced tax revenue, many governments across the EMEA region continue to support R&D activity by offering, and in some cases, enhancing, R&D incentives to make them more attractive to investors.


“Here in the UK, the government has taken steps to improve the country’s attractiveness for R&D and intellectual property based businesses with the proposed introduction of a new ‘above the line’ cash credit for large companies and a reform of the taxation of intellectual property to introduce a lower tax ‘patent box’ regime for income derived from patented R&D from next April.”


According to KPMG’s analysis, the UK is one of only four countries surveyed to offer all three of the types of R&D incentives examined.


David Woodward concluded: “The UK is already among the most attractive countries in the region for R&D.  The introduction of the above the line credit and the patent box should enhance that position further.”


EMEA R&D incentives summary table


Country  Enhanced Deductions  Tax Credit   R&D Grants 
Czech Republic      
South Africa   
The Netherlands
United Kingdom 





For further information please contact:

Margot Cowhig, KPMG Corporate Communications
Tel:  0207 694 4246 Mobile: 07920 274856: margot.cowhig@kpmg.co.uk


KPMG Press Office: 0207 694 8773


Notes to editors.

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff.  The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.


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