R + D and tax incentives are two concepts that are united in Spain and more after the last fiscal modifications approved by the executive on June 20, where these are the only deductions that have been strengthened by the current government.
Concepts such as the 18-year tax credit, deductions of up to 42% that also allow the limits of the deductible quota to be increased by up to 60%, activate R & D expenses to carry out an accounting plan, deducted by personnel dedicated to R & D activities and the famous and at the same time unknown Patent Box, are concepts that are heard in tax departments, but that companies rarely apply.
- Many companies do not apply these incentives due to lack of knowledge or, on other occasions, if the concept does sound, the correct functioning of these deductions is unknown.
- Most companies have never considered doing them due to the fear of demonstrating the execution of an R & D project, since there is an extreme difficulty in classifying the activities correctly (confusing development with innovation is very recurrent).
- The most mentioned reason for companies and businessmen is the strong legal insecurity before the hacienda and more obtaining high amounts for these deductions.
There are different formulas to reduce this degree of insecurity (and even eliminate it, for example, the issuance of binding Ex-Post reports.) They indicate the type of activity that the company has developed, the amount that is deductible and the items that can be deducted. To take advantage of these incentives, do not confuse an Ex-Post report (report that is carried out once the project is executed) with the Ex-Ante reports (such as those provided by CDTI) that indicate spending that is likely to be made.
Having an expert consultant in this specialty is an indispensable fact for any company that carries out R & D & I activities. Locate the projects subject to the deduction, see the nature of the expense, calculate the tax credit explaining its legal operation, obtain legal security against the farm, and document everything to obtain guarantees against an inspection, it is part of the work that must be carried out carried out by a professional consultant and with a strong knowledge about the sector. Planning from the beginning of the fiscal year is essential for the correct functioning of the entire process.
Making these deductions is not only available to Spanish companies with large tax cabinets. The purpose of these incentives is to support SMEs to be awarded for investing in R + D + i.
Plan, identify and guarantee this process, it is an essential work to take advantage of the tax advantages that we have in Spain, the best of all the European market for R & D & I.