1. Any Qualifying Entity may claim the Research and Development Tax Credit in respect of Qualifying Research and Development Expenditure, provided that all of the following conditions are satisfied: a. The Qualifying Entity shall satisfy the minimum number of employees engaged in Qualifying Research and Development Activities, as specified in a resolution issued by the Minister; b. The Qualifying Entity shall obtain the necessary prior approvals from the Council, and shall comply with the ongoing compliance requirements as specified in a resolution issued by the Minister, as well as any additional requirements specified by the Council; c. The Qualifying Entity shall bear the financial burden of implementing the Qualifying Research and Development Activities; d. The Qualifying Entity shall have a share in the revenues derived from the exploitation of intangible assets or other results of Qualifying Research and Development Activities. Such exploitation shall include the transfer of such intangible assets, other results of Qualifying Research and Development Activities, or any rights therein, or their use in commercial operations; e. The relevant Research and Development Project shall aim to increase the stock of knowledge or to develop new applications for available knowledge. The Qualifying Research and Development Activities shall be carried out directly to achieve that objective; and f. The Qualifying Entity shall comply with all requirements set forth in this Resolution and any other resolution issued by the Minister, the Council, or the Authority in implementation thereof. 2. In addition to the conditions set forth in Clause (1) of this Article, where the Qualifying Entity is a Qualifying Free Zone Person, only one of the following conditions shall be met: a. It shall be subject to Corporate Tax at a rate of nine percent (9%) on Taxable Income for the Tax Period during which the Qualifying Research and Development Expenditure was incurred. Such Taxable Income shall be derived from Qualifying Research and Development Activities; or b. It shall be subject to Top-up Tax for the Fiscal Year during which the Qualifying Research and Development Expenditure was incurred. 3. The Qualifying Research and Development Activities shall be deemed completed on the date on which the Qualifying Entity ceases to conduct such activities, becomes unable to continue carrying on its activities, or enters into liquidation proceedings, whichever is earlier.
Interpretation and application must be checked against the official text and current version.