Worldwide R&D Incentives Reference Guide 2023

The 2023 Worldwide R&D Incentives Reference Guide, contains the latest updates as of February 2023 summarizing key incentives across 46 jurisdictions, including Luxembourg. The guide offers taxpayers the information necessary to identify and help to leverage opportunities to benefit from available incentives. This is particularly relevant if they are contemplating new or expanded investments in R&D, innovation and sustainability. In Luxembourg, the government has regularly increased its budget allocations for R&D and innovation over the years to encourage technological development and economic activity. If you are based in Luxembourg or elsewhere in Europe and considering venturing into new realms of R&D, innovation and sustainability, this guide is your go-to.

Each chapter begins with contact information for key EY R&D incentive professionals, before laying out a short overview of that country’s approach to incentivizing R&D, innovation or sustainability-related activity and providing a checklist showing which types of incentives are available. Where an incentive is most commonly referred to in local language, we have provided a translation.

In some instances, EY professionals note which incentive some clients say is most beneficial to them; however, the applicability of the incentives depends on the taxpayers’ facts and circumstances.

For each incentive, EY lists the following information:

• A description of the benefits delivered
• Guidelines around incentive applications
• Eligibility requirements
• Intellectual property and jurisdictional requirements
• Role of governmental bodies in administering the incentive
• Administrative requirements
• Any statutory references

The Worldwide R&D Incentives Reference Guide is published alongside three companion guides on broad-based taxes: the Worldwide Corporate Tax Guide; the Worldwide Personal Tax and Immigration Guide; and the Worldwide VAT, GST and Sales Tax Guide. In recent years, those three guides have been joined by additional tax guides on more specialized topics, including the Worldwide Estate and Inheritance Tax Guide, the Worldwide Transfer Pricing Reference Guide, and the Worldwide Capital and Fixed Assets Guide