The objective of the Tax Deductions for R+D+i is to reward the effort made by companies in the development of innovative activities.
The Tax Deductions for R+D+i aim to reward the effort made by companies in the development of innovative activities. It is possibly the most interesting deduction for companies since it is applied directly to the amount to be paid for the tax and not to the tax base, which considerably reduces the amount to be paid for the tax relief.
In the following article, our expert team in this area answers the most frequent questions asked by those interested in deductions, in the common territory (except in Navarra and the Basque Country).
Are the Tax Deductions for R+D+i of interest for all types of entities?
They can be applied by any taxable person (except foundations) of the Corporate tax relief that carries out innovative activities.
Can any type of company apply them?
They can be applied by any company, regardless of its size, turnover, and sector of activity.
What type of expenses is part of the deduction base?
Expenses directly related to a specific project and that are applied directly to it: own labor, materials, subcontracting, etc… In this concept, costs attributable indirectly (for example, general expenses) are therefore excluded.
Is it compatible with other types of incentives such as grants and loans?
Yes, except that in the case of subsidies, these must be subtracted from the deductible base before applying the corresponding deduction percentages.
Said subsidies must be attributable as income in the tax period of the deductible R+D+i expenses. For these purposes, it must be taken into account that even if they are subsidies that have not been granted for the R+D+i expenses that are deducted, if their allocation corresponds to the same tax period, they must also be deducted from the deductible base. .
As for the loans, in the case of being granted at a lower interest rate than what the company usually processes, the equivalent subsidy of having a loan at better market conditions must be taken into account.
What are the deduction percentages applicable to expenses incurred for research and development activities?
And those of Technological Innovation?
The applicable deduction percentage will be 12% of the expenses incurred in the tax period for this concept.
Do I have to be in benefits to apply the Tax Deductions for R+D+i?
You have 18 years since you carry out the R+D+i activities to benefit from the incentive, but if what you need is immediate liquidity, with a loss of 20% of the deduction, the Treasury will pay you 80% of the deduction that you corresponds, as long as you meet a series of conditions.
- That the entity has obtained a binding reasoned report on the qualification and valuation of the expenses of the activity such as research and development or technological innovation.
What is a binding reasoned report?
A Binding Motivated Report is a document issued by qualified organizations that classify the activities of a project as R&D and/or Technological innovation. In addition, they can collect the expense or budget of the project.
What are binding reasoned reports for?
The Binding Motivated Reports guarantee that an R+D+i project has been technically and economically audited, and since they are binding, they function as legal insurance that gives companies more security before inspections by the Tax Agency.
Tax deductions for R+D+i activities in one minute
Rafael Legasa, director of the Tax Incentives area at Zabala Innovation, explains to you, in just over a minute, how you can benefit from tax aid for R+D+i activities.