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Practical Handbook for Companies 2021

Deduction rates

  • As a general rule, the following applies: 25 per cent of the expenses incurred in the tax period for this concept.

    In the event that the expenses incurred in carrying out research and development activities in the tax period are greater than the average of those incurred in the previous two years, 25 per cent will be applied up to this average, and 42 per cent will be applied to the excess over this average.

    In addition, a deduction of 17 per cent of the amount of the entity's personnel expenses corresponding to qualified researchers assigned exclusively to research and development activities may be made.

  • A deduction of 8 per cent may also be applied to investments in tangible and intangible fixed assets, excluding buildings and land, provided that they are used exclusively for research and development activities.

    It is also required that the items in which the investment is made must remain in the taxpayer's assets, unless there are justified losses, until they fulfil their specific purpose in the research and development activities, unless their useful life in accordance with the depreciation method permitted under Article 12.1(a) of the LIS, which is applied, is shorter.