Reduce up to 100% of your Corporate Income Tax
R&D&I Tax Deductions are designed to reward companies for their efforts in developing innovative activities. Therefore, deductions of up to:
- 100% of Corporate Income Tax are allowed.
- 59% for Research and Development (R&D) projects.
- 12% for Technological Innovation projects.
What are R&D&I Tax Deductions?
In short, R&D&I Tax Deductions represent a reduction in the amount payable for Corporate Income Tax.
The main goal of this incentive is to promote research, development, and technological innovation activities within companies by reducing their tax burden. This, in turn, boosts the competitiveness of the business ecosystem by rewarding those who lead in process and product innovation.
Can my company benefit from R&D&I Tax Deductions?
If you have developed a new process or product in the last five years, improved an existing one, or created an innovative new service, you may be eligible for R&D&I Tax Deductions—provided you can justify it appropriately.
If you haven’t applied for them previously, you can request deductions retroactively for up to four years, recovering investments made in prior years.
For example, the following activities may qualify for tax deductions:
- Significant improvements in production processes.
- Development of new products and enhancements to existing ones.
- Incorporation of existing technologies that represent a subjective innovation for your company.
This tax incentive is outlined in Law 27/2024, dated November 27, on Corporate Income Tax. It also includes the possibility of applying the deduction without a tax liability limit, and even requesting a refund or monetization of any surplus.
