The objective is to reward the efforts that companies make, and as a result, it makes it possible to reduce the amount of Corporate Tax by up to 100%. Among the instruments available to the General State Administration to promote business innovation are tax incentives, also known as Tax Deductions for R+D+i, and bonuses for research personnel. These instruments are horizontal in nature, their application being free and general, which means that there is no competitive competition or a predefined limit budget. Their main objective is to encourage R&D projects in the private sector, without conditioning the innovative environment to which the company is oriented.Does your company carry out research, development or technological innovation activities?If so, your company has the right to deduct: -Up to 12% of return for Technological Innovation (IT) projects -Up to 59% of return for Innovation + Development (ID) projects. Through Deductions for R+D+i, companies can maximize their benefits obtained by carrying out Research, Development and Technological Innovation activities. In addition, to apply these deductions, R&D or technological innovation expenses must be related to these activities, at the same time that they must point to specific projects. On the other hand, to apply these deductions, R&D or technological innovation expenses must be related to these activities, at the same time that they must point to specific projects. In addition, the LIS (Corporate Tax Act) establishes that the basis of the deduction must decrease the amount of subsidies received when they are implemented as income in the tax period. We recommend that you request Deductions for R+D+i if your company: - Develops new projects and improves existing ones.- Incorporate existing technologies that represent a novelty for the company.- It significantly improves production processes.What is considered R&D?R&D is considered to be original and planned research that seeks to discover new scientific and technological knowledge, the application of research results for the manufacture of new materials, products or processes/production systems, as well as their substantial technological improvement.What are the application requirements for R+D+i tax deductions?
The average general or average workforce assigned to R+D+i cannot be reduced within 24 months. An amount equivalent to the Deduction must be allocated to expenses or investments in R+D+i within 24 months from the end of the tax period. The requesting company must obtain a Motivated Report or a Prior Assessment Agreement on the qualification of the activity to be deducted as Research, Development or Technological Innovation
What is the maximum amount that can be obtained through Tax Deductions for R+D+i?
The amount of the Deduction for all R&D activities can never exceed 5 million euros per year. For Deductions for technological innovation activities, the amount can never exceed 1 million euros per year.
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