Costs of registration of chemical substances

According to the information provided by the GFD and in compliance with the relevant EU regulations, a resolution on registration of a chemical substance made by the European Agency is understood to be a fixed intangible asset. The costs incurred in connection with such registration, evaluation, permission and restriction of chemical substances are, in compliance with accounting regulations[1], deemed to constitute a part of the acquisition price of the relevant resolution on registration.

Tax depreciations can be applied evenly in respect of this intangible asset without any interruption for a period of 72 months.

Where the costs incurred in connection with obtaining the registration of a chemical substance are included in the operating profit/loss, they cannot be tax deductible pursuant to the Income Tax Act and they must be therefore excluded from the tax base.

If such costs are retained in the tax base as a tax deductible cost, the payer is obliged to file a supplementary income tax return for the relevant periods and exclude such costs from the tax base.

[1] Pursuant to Section 6(3)(c) of Decree No. 500/2002, Coll., implementing certain provisions of the Accounting Act.