If you want to know if your business is applicable for R+D+i tax deductions, take a look at our application guide below
Does your company want to save money in corporation tax payments?
R+D+i tax deductions are comprehensive tax payment deductions of up to 12% for each IT project, and 25% for R+D projects.
Additional deductions.
Surplus from previous tax years. For R+D projects, an additional 17-25%, if the R+D expenses surpass the average expenses from the previous two tax years.
The Spanish law established that deductions may only be applied to individual projects.
Tax Deductions
Patent Box
largest source of global R&D funding and subventions
R+D+i Tax Deductions
100% non-refundable grants for R&D&I
Research Personnel Bonuses
The vast majority are carried out through consortium projects
Iplus|F Method
1. Project identification
Process
The activity patterns (phases) that the business uses to gain the best products and/or services on the market.
Improvement: Projects or investments made in any or all of the process activities with the objective of progressing its current status.
Result: Projects or investments made in any or all of the process activities with the objective of progressing the unknown or non-existing current status.
Product
The result of the production process (including services)
Improvement: Projects or investments made with the objective of progressing its current characteristics.
Result: Projects or investments made with the objective of progressing the unknown or non-existing current characteristics.
2. Project classification
In state of the art operations, projects may be classified as Research, Development or Innovation projects. State of art is a comparative analysis of your company’s project using a variety of different technologies available on the market.
3. Project budgeting
Personnel expenses
Cost per hour calculation: Salary costs / No. of hours per year
The costs of the operating personnel and their working hours shall be accounted for in the project.
Cost per hour calculation: Salary costs / No. of hours per year
The costs of the operating personnel and their working hours shall be accounted for in the project.
Materials
Necessary material costs for the implementation of the project.
Necessary material costs for the implementation of the project.
Apparatus and equipment
Amortization calculation. Accountable amortization/ No. of hours operated.
The costs of the apparatus and equipment and their operating hours shall be accounted for in the project.
Amortization calculation. Accountable amortization/ No. of hours operated.
The costs of the apparatus and equipment and their operating hours shall be accounted for in the project.
External contracts
Contractor (supplier) expenses of the project.
Contractor (supplier) expenses of the project.
Others
Costs not included in any of the above sections
Costs not included in any of the above sections
General valuation rule. Project costs must remain within the project objectives. If the budgeted cost is eliminated, will the result of the project be altered? In the case thereof, the cost is necessary for the implementation of the project.
4. Project phases
The projects must not be left to chance and must be the result of a specific planned activity. There is a generic phase in almost every business project, although the activity that they carry out may be adapted to the operations of the company.
These phases may be:
- Project viability (configuration of objectives)
- Choice of solution (operation of the objective)
- Development of the solution (execution of the project)
- Evidence and validation (correcting the execution, if necessary, to align it with the proposed objective)
The project phases must be related to the project proposal.
5. Deduction management
Direct Application
The corporate tax for the R+D+i tax deductions specified for each project.
The corporate tax for the R+D+i tax deductions specified for each project.
Application with certified report
The certification report is a classification of the project which is obtained via the presentation, for its due expert evaluation, to an ENAC certified entity .
The certification report is a classification of the project which is obtained via the presentation, for its due expert evaluation, to an ENAC certified entity .
Binding consultation and prior evaluation agreements
Consultations of any nature to the Tax Directorate General (classification).
Prior evaluation agreements. Consultations for the Tax Agency Administration regarding any outstanding debt of the project budget.
Consultations of any nature to the Tax Directorate General (classification).
Prior evaluation agreements. Consultations for the Tax Agency Administration regarding any outstanding debt of the project budget.
Motivational report application
The tax deduction shall be supported by a motivational report issued by the competent administration (Ministry of the Economy and Competitivity or CDTI), whose response shall be binding in the eyes of the Tax Agency. Said report includes a certification report.
It shall be requested before the end of the declaration deadline.
The tax deduction shall be supported by a motivational report issued by the competent administration (Ministry of the Economy and Competitivity or CDTI), whose response shall be binding in the eyes of the Tax Agency. Said report includes a certification report.
It shall be requested before the end of the declaration deadline.
The following shall need to be provided for each project: .
Technical Report
A technical description of the project, with its evaluation (R+D/IT), and the description of each of the phases necessary for its execution. Furthermore, real evidence must be provided of the project’s execution.
A technical description of the project, with its evaluation (R+D/IT), and the description of each of the phases necessary for its execution. Furthermore, real evidence must be provided of the project’s execution.
Economic report
The project budget duly itemized into project phases and sections. The necessary administrative documentation shall also be required to support the budget verification.
The project budget duly itemized into project phases and sections. The necessary administrative documentation shall also be required to support the budget verification.
DEDUCTION MONETIZATION
Businesses with negative Corporation Tax payments may request the monetization of tax deductions applied to R+D+i projects, for any deduction incurred as of January 1, 2013 which submits a motivational report , and for those with an 80% amount thereof. The quantity paid cannot be more than €3 million for general R+D+i deductions, with this limit extended to €5 million in certain circumstances and €1 million for IT deductions, all subject to the compliance with the legal requirements.
LEGAL PAYMENT REQUIREMENTS
- To have obtained a Binding Motivational Report (BMR) for the project (the simple request of this report is not valid).
- That at least a year has passed since the tax period in which the deduction was incurred.
- That the amount of the applied deduction is reinvested or paid out for R+D+i expenses, or investments in fixed assets or intangible asset.
- That the total average payroll or staff organizational structure for R+D+i activities is not reduced, as of the end of the tax period in which the deduction was incurred until the end of the reinvestment period.
Other services
Patent Box
With this deduction, you will be able to value your intangible assets and save money at the same time.
R+D+i Projects
One of the main corporate tax deductions is for innovation, we analyze if your company can apply this tax deduction.
