Deduction base

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

Research and development expenses shall be considered those incurred by the taxpayer, including the depreciation of assets assigned to the aforementioned activities, insofar as they are directly related to said activities and are effectively applied to their performance, being specifically listed individually 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 deduction base, and said deduction cannot be applied to indirect expenses (such as financial expenses, general company structure expenses, among others), nor to all those that, despite having a direct relationship with the aforementioned activity, are not susceptible to individualization, or if said distribution has not been made. Therefore, for the proper individualization by projects of the direct expenses incurred in each of them, it is required to specify the concepts and amounts thereof.