Applications for the Tax Incentive System for Business Research & Development (SIFIDE) are open until May 31, 2024 and are aimed at companies with R&D activities, so that they can recover part of their investment through tax credits.

SIFIDE aims to increase the competitiveness of companies by supporting their R&D efforts, by deducting a percentage of their expenses from the IRC tax.

This incentive covers: research expenses, such as those incurred by the IRC taxpayer with a view to acquiring new scientific or technical knowledge; and development expenses, such as those incurred by the IRC taxpayer through the exploitation of the results of research work, or other scientific or technical knowledge, with a view to discovering or substantially improving raw materials, products, services or manufacturing processes.

SIFIDE provides for a base rate for tax deductions on taxable profits of 32.5% of R&D expenses. In addition, an incremental rate of 50% is applied to the increase in this expense in relation to the average of the previous two years, up to a limit of 1.5 million euros.

In practical terms, this support could mean recovering up to 82.5% of investment in R&D.

Who can apply:

• All IRC taxpayers who primarily carry out an activity of an agricultural, industrial, commercial or service nature may apply for this support system provided that they cumulatively meet two conditions: the taxable profit is not determined by indirect methods and that they are not indebted to the Tax Authority and Social Security.

The R&D activities covered by SIFIDE are:

• Research expenses: those incurred by the IRC taxpayer with a view to acquiring new scientific or technical knowledge;
• This incentive covers: research expenses, such as those incurred by the IRC taxpayer with a view to acquiring new scientific or technical knowledge; and development expenses, such as those incurred by the IRC taxpayer through the exploitation of the results of research work, or other scientific or technical knowledge, with a view to discovering or substantially improving raw materials, products, services or manufacturing processes.

Eligible expenses:

• Expenses with personnel directly involved in R&D tasks (If PhD, 120% is considered)
• Operating expenses (up to 55% of personnel expenses)
• Acquisitions of tangible fixed assets
• Participation in the capital of I&D institutions and contributions to Investment Funds
• Cost of registering, acquiring and maintaining patents
• I&D audit expenses
• Participation of staff in the management of I&D institutions
• Contracting of I&D activities with public entities (or with status) or with suitable entities recognized by ANI
• Expenses for demonstration actions
• Expenses relating to R&D activities associated with eco-design product projects are considered at 110%.

For further information, you can contact us or see here:

SIFIDE