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Practical Handbook for Companies 2021

Requirements

In order to be able to apply this option, the following requirements must be met:

  1. At least one year has elapsed since the end of the tax period in which the deduction was generated without the deduction 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 from the end of the tax period in which the deduction was generated until the end of the period referred to in point (c) below.

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

  4. The entity must have 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 these activities, under the terms established in article 35.4 of the LIS.

Failure to comply with any of these requirements will lead to the regularisation of the amounts unduly applied or paid, in the manner established in article 125.3 of the LIS.