Basel Innovation Credit: Overview Of Key Terms

In this blog we outline the key aspects of the Basel innovation credit based on the recently enacted ordinance on the cantonal act promoting business in the Basel area (Verordnung zum Standortförderungsgesetz or StaföV). For Basel-based companies with research and development (R&D) or clinical trial activities, such innovation credit can be financially quite attractive. Some restrictions are very Basel orientated and we hope that later revisions will relax some requirements.

1. Qualifying Companies

All legal entities subject to unlimited taxation in Basel Stadt qualify for the innovation credit if they are primarily active in research and development (R&D) driven sectors like food, chemicals, life sciences, metal, machinery, high-technology instruments, and manufacturing or services related to information & communication technology (ICT). In addition companies qualify if eligible R&D expenses exceed at least 10% of their total expenses over the last three years