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Practical Manual of Companies 2022.

Deduction base

The basis of the deduction will be the amount of the research and development expenses and, where applicable, the investments in tangible and intangible assets , excluding buildings and land.

Research and development expenses will be considered to be those incurred by the taxpayer, including the depreciation of assets used for the aforementioned activities, as long as they are directly related to said activities and are effectively applied to their execution, and are specifically individualized by projects.

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 deduction base, and said deduction cannot be applied to indirect expenses (as is the case of financial expenses, those of the general structure of the company, among others), nor on all those that, despite having a direct relationship with the aforementioned activity, are not susceptible to individualization, or if said distribution has not been carried out. Therefore, for the proper individualization by projects of the direct expenses incurred in each of them, the concepts and amounts thereof must be specified.