# Can I claim Research & Development (Forschung & Entwicklung) as a business expense in Switzerland?

**Yes, fully claimable.** Fully deductible, and with a potential additional 50% deduction at the cantonal level under the R&D super-deduction (Forschungsabzug) introduced from 2020. R&D conducted in Switzerland by Swiss-based employees or contracted to third parties may qualify for the enhanced deduction.

Typical amount: Qualifying deduction: up to 150% of eligible domestic R&D spend at cantonal level. Typical R&D budgets for innovative Swiss SMEs: CHF 50,000–500,000 per year.

## What Federal Tax Administration (ESTV/FTA) says

R&D costs are deductible as ordinary Betriebsausgaben at the federal level. Since 2020, cantons have the option (under the Corporate Tax Reform III implementation / STAF) to allow an additional 50% deduction on qualifying domestic R&D expenditure, meaning CHF 100,000 of qualifying R&D generates a CHF 150,000 tax deduction. To qualify, R&D must be: conducted by the company itself in Switzerland, or outsourced to a third party in Switzerland (80% of the outsourced cost is deductible under the enhanced rule), or conducted by a foreign group entity (only 80% of direct costs qualify). Personnel costs and direct costs attributable to R&D qualify. The extra 50% deduction is a cantonal measure and not all cantons implement it at the same rate.

## When you can claim

- Salaries of engineers, developers, or scientists engaged in qualifying R&D work
- Materials and consumables used directly in R&D experiments or development
- Third-party R&D contracts with Swiss universities, research institutions, or contractors
- Depreciation of equipment used exclusively for R&D purposes
- Patent registration and IP protection costs related to domestic R&D output

## When you cannot claim

- Market research or customer surveys (these are marketing costs, not R&D)
- Quality control or routine testing of existing products
- R&D conducted entirely abroad by foreign group entities (no Swiss enhanced deduction)
- Administrative overhead not directly attributable to R&D activities

## Good to know

**Pro tip:** The R&D super-deduction is underused by Swiss SMEs. If you have Swiss-based developers building a new product, track their time specifically against R&D activities. A proper R&D time-tracking record is essential to substantiate the enhanced deduction claim in the cantonal tax return. Consult a Treuhänder familiar with the STAF super-deduction rules for your specific canton.

Source: https://www.estv.admin.ch/estv/de/home/direkte-bundessteuer/juristische-personen/steuerermaeßigungen/forschungsabzug.html

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