B. Deduction for technological innovation activities (art. 35.2 LIS)
Concept of technological innovation
Technological innovation is considered to be the activity whose result is a technological advance in obtaining new products or production processes or substantial improvements to existing ones. New products or processes are considered to be those whose characteristics or applications are substantially different from those that existed previously, from a technological point of view.
This activity will include the materialization of new products or processes in a plan, scheme or design, the creation of a first non-marketable prototype, initial demonstration projects or pilot projects, including those related to animation and video games and textile samples. , of the footwear, tanning, leather goods, toys, furniture and wood industries, provided that they cannot be converted or used for industrial applications or for commercial exploitation.
The base of the deduction will be constituted by the amount of the expenses incurred by the taxpayer insofar as they are directly related to technological innovation activities, are effectively applied to their implementation and are specifically individualized by projects.
The technological innovation expenses that make up the basis of the deduction must correspond to activities carried out in Spain or in any Member State of the European Union or the European Economic Area.
Likewise, the amounts paid to carry out said activities in Spain or in any Member State of the European Union or the European Economic Area, at the request of the taxpayer, individually or in collaboration with other entities, will be considered technological innovation expenses.
The base of the deduction will be reduced by the amount of the subsidies received to promote said activities, and are taxed as income during the tax period.
Percentage of deduction
In this case, the deduction percentage will be 12 per 100 of the expenses incurred in the tax period for this concept.
However, for expenses incurred in projects started on or after June 25, 2020 that consist of carrying out technological innovation activities whose result is a technological advance in obtaining new production processes in the value chain of the manufacturing industry. automotive or substantial improvements to existing ones, in the manner established in art. 7 of Royal Decree-Law 23/2020, of June 23, in the wording given by Final Provision 8.1 of Royal Decree-Law 34/2020, of November 17, an increase in the deduction is established by 38 percentage points (up to 50 percent of these expenses). This increase may be applied by those taxpayers who are considered small and medium-sized companies in accordance with the provisions of Annex I to Commission Regulation (EU) No. 651/2014, of June 17, 2014, by which certain categories of aid are declared compatible with the internal market in application of articles 107 and 108 of the Treaty ( OJ L 187 of 26-06-2014. In the case of taxpayers who do not have such consideration, the expected increase will be 3 percentage points .
Additionally, for the application of the indicated increase the following will be taken into account:
The conditions provided for in Chapter I and in Article 29 must be met, except as regards the basis of the deduction, of Commission Regulation (EU) No. 651/2014, of June 17, 2014, by which declares certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.
It will be necessary for the entity to have obtained a reasoned report on the classification of the activity as technological innovation whose result is a technological advance in obtaining new processes or substantial improvements to existing ones, in the terms established in letter a) of section 4 of article 35 of the LIS .