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A company sought clarification on whether developing software for managing energy efficiency data in buildings qualified for R&D tax deductions. The Directorate-General for Taxes (DGT) ruled that it does not constitute R&D as it does not involve significant scientific or technological progress, although it could be classified as technological innovation if substantial technological novelty is demonstrated.
Companies developing software for data management must ensure they meet the threshold of significant technological progress to qualify for R&D tax incentives, otherwise they may only qualify under the more limited technological innovation category.
The tax team reviews your specific situation.
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