Innovation Club
Innovation Club
image

Tax Credit Services

Moving towards a knowledge-based economy requires increasing and upgrading research and development activities in various industries and using the existing technological potential to meet the country’s needs. One of the key laws that drive the development of the knowledge-based economy in the country is the Knowledge-Based Production Leap Law approved in 1401, which, by creating support tools such as the research and development tax credit subject to paragraph b of Article 11 of the law and the investment tax credit subject to paragraph d of Article 11 of the law, has provided a suitable opportunity for the growth and development of large companies and industries in the country.

The Tax Credit is a support incentive system governments offer to reduce the tax burden of companies and individuals. This system directly reduces the amount of tax paid; unlike tax deductions that only reduce taxable income. Tax credits can be granted for various purposes, including encouraging investment in research and development (R&D), job creation, energy conservation, and more. Therefore, to direct tax support towards the development of innovation and the knowledge-based economy and for companies to benefit from the benefits of tax credits, Segal Ventures, as one of the entities under Segal Holding, provides the following services to develop the corporate ecosystem with the help of expert experts and elites specializing in various fields and utilizing the Segal ecosystem professional technologists network.

 

  • Assessing the company’s technology level to determine development capacities
  • Holding technical meetings to determine the optimal solution for using tax credit
  • Consulting in preparing and arranging the company’s research and development and investment plans
  • Negotiating, evaluating, and determining qualified technologists to implement approved plans
  • Following up and attending meetings to evaluate plans and obtain approval of in-principle approval
  • Following up and attending meetings to defend the Securities and Exchange Organization’s working group
  • Project company management services and monitoring private investment funds
  • Monitoring and controlling the progress of the performance of approved technologists of tax credit plans
  • Following up and attending meetings to resolve issues related to the approval of the company’s cost of plans
  • Following up to determine and obtain tax credit in the working group of the Strategic Council Secretariat

 

image

R&D Tax Credit

 

The R&D Tax Credit is a special type of tax credit designed to encourage companies to invest in innovation and the development of new technologies. This tax credit allows companies to deduct a portion of their research and development costs from their taxes, including knowledge-based companies.

 

Objectives of the R&D Tax Credit

  • Encouraging innovation: Increasing the incentive for companies to invest in research and development projects.
  • Increasing competitiveness: Helping companies improve their products and processes, thereby
  • increasing their competitiveness in global markets.
  • Creating jobs: Stimulating job creation in research and development sectors.
  • Economic development: Boosting economic growth by increasing productivity and producing new products.

 

How the R&D Tax Credit Works

Companies can claim a portion of their research and development costs as a tax credit. These costs may include:

  • Wage costs: Salaries and wages of employees engaged in R&D projects.
  • Materials and supplies costs: Costs related to raw materials and consumables in projects.
  • Contract research costs: Costs related to research that is contracted out to other companies.
  • Equipment costs: Costs related to the purchase of equipment specifically for R&D.

 

Benefits of R&D tax credits

  • Tax reduction: A direct reduction in the amount of tax paid, which can help improve companies’ liquidity.
  • Increase in investment in R&D: By reducing tax costs, companies may have a greater incentive to invest in R&D projects.
  • Increase in innovation and productivity: Encourage the development of new technologies and improvements to existing processes, which leads to increased productivity and product quality.

 

How to Calculate Taxpayer Tax Credit

Calculating a taxpayer tax credit is a multi-step process that involves identifying eligible expenses, determining the amount of credit allowed, and applying it to taxes paid.

image

Investment Tax Credit

 

With the approval of the Knowledge-Based Leap Law as an amendment to the main law, knowledge-based tax credit services have changed to facilitate the use of them by applicant companies. One of these is a facility intended for investors in the knowledge-based field, often known as the Knowledge-Based Investment Tax Credit. These facilities allow an investing company, regardless of whether it has a certificate or not, to place part of its tax under the tax credit by supporting knowledge-based complexes. In this way, government institutions can benefit from the help of secondary private companies in addition to the privileges they provide to technology complexes. This creates a network of financial and moral support programs that lead to economic growth and development.

When a private company supports a knowledge-based complex by investing, it can receive a tax credit in one of two ways:

 

Methods of Receiving Investment Tax Credit

Direct investment, up to thirty percent (30%) of the desired capital can be considered as credit, provided that the investing company is listed on the Tehran Stock Exchange or the First or Second OTC Market or has a registered capital of at least one-thirtieth of the capital of the Innovation and Prosperity Fund in Knowledge-Based and Technological Companies and Institutions.

Indirect investment, is equivalent to investment (100%) in the establishment or increase of capital from cash contributions in indirect investment funds and institutions that are used to increase the capital of directly invested companies and are spent on innovative and knowledge-based technological projects.

 

Eligible Investor Companies

  • Companies listed on the Tehran Stock Exchange or the First or Second Market of the Iranian OTC
  • Companies with a registered capital of at least one-thirtieth of the capital of the Innovation and Prosperity Fund

 

Investment Examples

  • Completion of the Value Chain
  • Development of New Products
  • National Development Priorities
  • Development of the Science and Technology Ecosystem
  • Increasing Scale and Mass Production in Technological and Knowledge-Based Areas

 

Investment Plan Approval Indicators

  • Systematic; Has a Subject, Objectives, Schedule, Cost Amount, and Exit Forecast
  • Technological; Has Depth and Level of Technology Approved by the Secretariat and Compliance with the List of Knowledge-Based Products and Services
  • Innovative; New at the Level of the Relevant Industry in the Country and Not Necessarily Unique

 

R&D Tax Credit

image

 

The R&D Tax Credit is a special type of tax credit designed to encourage companies to invest in innovation and the development of new technologies. This tax credit allows companies to deduct a portion of their research and development costs from their taxes, including knowledge-based companies.

 

Objectives of the R&D Tax Credit

  • Encouraging innovation: Increasing the incentive for companies to invest in research and development projects.
  • Increasing competitiveness: Helping companies improve their products and processes, thereby
  • increasing their competitiveness in global markets.
  • Creating jobs: Stimulating job creation in research and development sectors.
  • Economic development: Boosting economic growth by increasing productivity and producing new products.

 

How the R&D Tax Credit Works

Companies can claim a portion of their research and development costs as a tax credit. These costs may include:

  • Wage costs: Salaries and wages of employees engaged in R&D projects.
  • Materials and supplies costs: Costs related to raw materials and consumables in projects.
  • Contract research costs: Costs related to research that is contracted out to other companies.
  • Equipment costs: Costs related to the purchase of equipment specifically for R&D.

 

Benefits of R&D tax credits

  • Tax reduction: A direct reduction in the amount of tax paid, which can help improve companies’ liquidity.
  • Increase in investment in R&D: By reducing tax costs, companies may have a greater incentive to invest in R&D projects.
  • Increase in innovation and productivity: Encourage the development of new technologies and improvements to existing processes, which leads to increased productivity and product quality.

 

How to Calculate Taxpayer Tax Credit

Calculating a taxpayer tax credit is a multi-step process that involves identifying eligible expenses, determining the amount of credit allowed, and applying it to taxes paid.

Investment Tax Credit

image

 

With the approval of the Knowledge-Based Leap Law as an amendment to the main law, knowledge-based tax credit services have changed to facilitate the use of them by applicant companies. One of these is a facility intended for investors in the knowledge-based field, often known as the Knowledge-Based Investment Tax Credit. These facilities allow an investing company, regardless of whether it has a certificate or not, to place part of its tax under the tax credit by supporting knowledge-based complexes. In this way, government institutions can benefit from the help of secondary private companies in addition to the privileges they provide to technology complexes. This creates a network of financial and moral support programs that lead to economic growth and development.

When a private company supports a knowledge-based complex by investing, it can receive a tax credit in one of two ways:

 

Methods of Receiving Investment Tax Credit

Direct investment, up to thirty percent (30%) of the desired capital can be considered as credit, provided that the investing company is listed on the Tehran Stock Exchange or the First or Second OTC Market or has a registered capital of at least one-thirtieth of the capital of the Innovation and Prosperity Fund in Knowledge-Based and Technological Companies and Institutions.

Indirect investment, is equivalent to investment (100%) in the establishment or increase of capital from cash contributions in indirect investment funds and institutions that are used to increase the capital of directly invested companies and are spent on innovative and knowledge-based technological projects.

 

Eligible Investor Companies

  • Companies listed on the Tehran Stock Exchange or the First or Second Market of the Iranian OTC
  • Companies with a registered capital of at least one-thirtieth of the capital of the Innovation and Prosperity Fund

 

Investment Examples

  • Completion of the Value Chain
  • Development of New Products
  • National Development Priorities
  • Development of the Science and Technology Ecosystem
  • Increasing Scale and Mass Production in Technological and Knowledge-Based Areas

 

Investment Plan Approval Indicators

  • Systematic; Has a Subject, Objectives, Schedule, Cost Amount, and Exit Forecast
  • Technological; Has Depth and Level of Technology Approved by the Secretariat and Compliance with the List of Knowledge-Based Products and Services
  • Innovative; New at the Level of the Relevant Industry in the Country and Not Necessarily Unique

 

Subscribe to the Newsletter