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Practical Handbook for Companies 2021

Deduction base

The basis for the deduction shall be the amount of the research and development expenditure and, where applicable, the investments in tangible and intangible fixed assets, excluding buildings and land.

Expenditure incurred by the taxpayer, including depreciation of assets assigned to the aforementioned activities, shall be considered to be research and development expenditure in so far as it is directly related to those activities and is actually applied to the carrying out of those activities, and is specifically identified by project.

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.

The investments will be understood to have been made when the capital assets are put into operating condition.

Therefore, only those expenses that are directly attributable to the research and development project will form part of the basis for the deduction, . The deduction cannot be applied to indirect expenses (such as financial expenses, general company structure, etc.), nor to all those which, despite having a direct relationship with the aforementioned activity, cannot be individualised, or if this distribution has not been carried out.Therefore, in order to properly identify the direct expenditure incurred in each project, it is necessary to specify the items and amounts involved.