The tax deduction for R&D and IT (Technological Innovation)

Novelties introduced by the law on support for entrepreneurship

The "Ley de apoyo al emprendedor y su internacionalización" provides for the possibility of applying the deductions for R&D&I 3 million per year, albeit at a discount rate of 20% compared to the initially planned amount of the deduction.

Tax deductions for R&D&I activities are regulated by Royal Decree 4/2004 of 5 March 2004, revised text of the LIS, art. 35, amended by Law 35/2006 of 28 November 2006.

Advantages of R&D&I deductions

- Irrespective of the size of the company and its sector of activity.

- Possibility to recover between 12% and 59% of the project's deductible expenses.
- Possibility of requesting the crediting of deductions in case of insufficient quota (companies in loss or with accumulated tax credit).
- Immediate financial effect in the corresponding fiscal year on Net Income and Equity.
- It respects the autonomy of decision making for the R&D&I strategy as it does not prioritise some projects over others as all would be eligible for deduction.
- Reduction of the corporate tax liability proportional to the R&D&I activity.
- Compatible with public aid and the Patent Box incentive.

- Possibility to reduce corporate income tax and accumulate a tax credit for up to 18 years.
- Maximum legal certainty if you opt for the management of the binding Reasoned Report, after certification by an ENAC-accredited entity.

What is the ABRA INVEST service like?

At ABRA INVEST we offer you a integrated management of tax relief for activities related to R&D and Technological Innovation both at national level and in the different foral regimes:

• We identify all those activities that qualify as R&D&I.
• We carried out an analysis and diagnosis of the R&D&I expenses incurred in previous years.
• We draw up the technical, economic and tax reports of the R&D&I projects that justify the deduction generated.
• We support the application for the Motivated Report from the beginning of the process, including intermediation with the certifiers.

Our aim is to offer you maximum cost-effectiveness and legal certainty when managing the tax deductions for R&D&I.

If you are interested in obtaining tax deductions for your R+D+i, contact our specialised team and we will make a diagnosis without obligation (+34.94.642.41.42).