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Practical Manual of Companies 2020.

Requirements

In order to apply this option, it will be necessary to meet the following requirements:

  1. That at least one year elapses from the end of the tax period in which the deduction was generated, without it having been applied.

  2. That the average workforce or, alternatively, the average workforce assigned to research and development and technological innovation activities is not reduced since the end of the period tax period in which the deduction was generated until the end of the period referred to in letter c) below.

  3. That an amount equivalent to the deduction applied or paid is allocated to research and development and technological innovation expenses or to investments in elements of tangible fixed assets or intangible fixed assets exclusively assigned to said activities, excluding real estate, in the 24 months following the end of the tax period in whose declaration the corresponding application or credit request is made.

  4. That the entity has obtained a reasoned report on the classification of the activity as research and development or technological innovation or a prior agreement on the valuation of the expenses and investments corresponding to said activities, in the terms established in article 35.4 of the LIS .

Additionally, in the event that the research and development expenses of the tax period exceed 10 percent of the net amount of the turnover of the same , the deduction provided for in article 35.1 of The LIS generated in said tax period may be excluded from the limit established in the last paragraph of the previous section, and applied or paid with a discount of 20 percent of its amount in the first declaration that is presented after the deadline referred to in letter a) above, up to an additional amount of 2 million euros .

The non-compliance of any of these requirements will lead to the regularization of the amounts improperly applied or paid, in the manner established in article 125.3 of the LIS.