Publication of JMD - Support for innovative enterprises The Joint Ministerial Decision (JMD) that defines the "Criteria for the characterization of scientific and technological research expenses of enterprises" and has long been expected by the business community, was recently published in the Government Gazette (Government Gazette B '2351 / 11.07.2017).

The JMD for the Support of innovative businesses is another important institutional tool, implemented through the tax exemption provided for expenditure on research equipment and scientific instruments and strengthens the legal framework for the implementation of all state aid projects and infrastructures in the field of Research and Innovation.

Content of the EIA on support for innovative enterprises

More specifically, this Decision in conjunction with the Tax Code provides for expenses related to equipment depreciation. The equipment is used for the needs of implementing research projects. Expenses will be deducted from the gross revenues of the enterprises at the time of their realization, increased by 30%.

The decision is important for both businesses and public research bodies and higher education institutions. It complements the extremely favorable regulation of the Law, which was passed in 2016 and concerns "increased depreciation at a rate of 40% of the equipment and instruments used for the needs of performing scientific and technological research".

As a consequence of this arrangement, in the average lifetime of a research project, the costs incurred are fully amortized. In the case of a co-financed project, the beneficiary may receive a grant for the entire eligible cost concerned.

In addition, the criteria for classifying these costs are broadened and clear and more favourable provisions for innovative businesses are introduced. Depreciation for buildings and operating expenses is now included.

The JMD concerns the entire financial year 2017 onwards. The increased depreciation rates of 40% are already in force since the publication of the relevant law in the Government Gazette on 11.5.2016.

Costas Fotakis, Deputy Minister Research and Innovation , expressed his pleasure at this decision.

He stated: "The decision creates an important incentive for the development of research activities and the participation of companies in NSRF research projects. Such as those managed by the GSRT. Such incentives contribute to the central goal of the Government for the formation of a new development model based on the Knowledge Economy".