Technological innovation activities (article 35.2 of the LIS)

a. Concept of technological innovation

Technological innovation will be considered to be any activity that results in a technological advance in obtaining new products or production processes or substantial improvements to existing ones. New products or processes are considered to be those whose characteristics or applications are substantially different from those that existed previously, from a technological point of view.

This activity shall include the materialisation of new products or processes in a plan, scheme or design, the creation of a first non-marketable prototype, initial demonstration projects or pilot projects, including those related to animation and video games and textile, footwear, tanning, leather goods, toy, furniture and wood sample books, provided that they cannot be converted or used for industrial applications or for commercial exploitation.

b. Deduction base

• The basis for the deduction will be the amount of expenses for period in technological innovation activities corresponding to the following concepts:

  1. Technological diagnostic activities aimed at identifying, defining and guiding advanced technological solutions, regardless of the results they produce.

  2. Industrial design and production process engineering , which will include the conception and preparation of plans, drawings and supports intended to define the descriptive elements, technical specifications and operating characteristics necessary for the manufacture, testing, installation and use of a product, as well as the preparation of textile samples, for the footwear industry, tanning, leather goods, toys, furniture and wood.

  3. Acquisition of advanced technology in the form of patents, licenses, "know-how" and designs. Amounts paid to people or entities related to the taxpayers do not give way to the right to the deduction. The base corresponding to this concept may not exceed the amount of one million euros.

  4. Obtaining the certificate of compliance with quality assurance standards of the ISO 9000 series, GMP or similar, not including those expenses corresponding to the implementation of said standards.

  Keep in mind:

  • Technological innovation expenses are considered to be those incurred by the taxpayer as long as they are directly related to said activities and are effectively applied to their performance, being specifically individualized by project.

  • Expenses corresponding to activities carried out in Spain or in any Member State of the European Union or the European Economic Area are considered to be research and development and technological innovation expenses.

    Therefore, if, in relation to a research project, activities are carried out in countries or territories not included in a Member State of the European Union or within the European Economic Area, the expenses incurred cannot be part of the deduction, but all expenses incurred in Spain or in one of those States, linked to said project, will be subject to deduction.

  • Amounts paid for the performance of such activities in Spain or in any Member State of the European Union or the European Economic Area, on behalf of the taxpayer, individually or in collaboration with other entities, will also be considered research and development and technological innovation expenses.

    Since the application of the deduction cannot give rise to the same expense in more than one entity, the third party who materially carries out the activity on behalf of another is not entitled to said deduction.

• The basis of the deduction will be reduced by the amount of the subsidies received for the promotion of said activities and attributable as income in the tax period.

c. Deduction percentages

The applicable deduction percentage will be 12 percent of the expenses incurred in the tax period for this concept.