If you have founded a technology-based startup or a company that has a certain research and development component, you will surely be happy to know that you can benefit from certain tax advantages. And the thing is that Spain allows companies deduct some expenses related to R+D+i as well as technological innovation. The former contemplate things such as the design and preparation of the sample for the launch of new products, the materialization of new products or processes, in a plan or design, as well as the creation of prototypes or pilot projects as long as they are used for industrial applications or are exploited commercially. In addition, according to the Tax Agency itself, those expenses aimed at creating, combining and configuring advanced software through “new theorems and algorithms” will be deductible or operating systems, languages, interfaces and applications intended for the development of new or substantially improved products, processes or services.” As for deductions from technological innovation, expenses oriented to products or pilot projects of segments related to animation and video games, textile samples, the footwear industry, tanning, leather goods, toys, furniture and wood are included, specifically. Treasury understands that as a technological innovation there must be a novelty or improvement substantial of a product or process, but it also opens up to a more subjective perspective, in line with the definition of innovation contained in the Oslo Manual in its latest version of 2005.
The basis for deductions
The deduction will only be based on direct expenses incurred in R+D+i, not on indirect expenses. Thus, they are requested to be individualized by projects so that they are justified. In the case of IT deductions, expenses are considered for technological diagnostics, industrial design and engineering of production processes, acquisition of technology in the form of patents, licenses or designs and obtaining certificates of compliance with quality standards of the ISO 9001 series. The percentage of deduction for R+D+i reaches 25% of expenses in the tax period. If they are higher than the average of those carried out in the previous 2 years, this 25% would be applied to that average and 42% to its excess. On the other hand, there would be an additional 17% in the case of personnel expenses to hire qualified researchers. The deduction for IT is lower. The applicable percentage is 12% for those expenses incurred during the tax period.
Outdoor activities
What happens if your company pays for R&D or innovation abroad? In this case, only those expenses linked to activities carried out in Spain or in any State of the European Union or the European Economic Area can form part of the deduction base. Therefore, if such expenses occur in non-EU countries, they would not be applicable to these deductions. On the other hand, it is also contemplated that taxpayers who contract the carrying out of these activities to third parties are also entitled to the deduction. It is valid for those amounts paid to companies in Spain or any member state of the EU or the European Economic Area.
Request and application of deductions
If you meet all these requirements, do not hesitate to apply for deductions, since they can mean significant savings for your company and are a very interesting incentive. From Intelectium we can help you apply for them. Contact us through our web form or by sending an email to comunicacion@intelectium.comM or more: https://intelectium.com/deduccion-empresas-nueva-creacion/
