Deductions excluded from the R&D&i limit (art. 39.2 LIS)

Entities to which the general tax rate provided for in section 1 or section 6 of article 29 of the LIS , applies may choose to exclude from the joint limits established in the last paragraph of article 39.1 of the LIS (25/50 percent), and must instead apply a discount of 20 percent of its amount, to the deductions for research and development activities and technological innovation referred to in sections 1 and 2 of article 35 of the LIS, under the terms established in article 39.2 of the LIS.

In the event of insufficient quota , its payment can be requested from the Tax Authority through the declaration of this Tax, once at least one year has passed since the end of the tax period in which the deduction was generated, without it having been applied. This payment will be governed by the provisions of article 31 of Law 58/2003, of December 17, General Tax Law, and its implementing regulations, without, in any case, the accrual of late payment interest referred to in article 31.2 of said Law.

Remember:

To exercise option for exclusion from the joint limit on deductions for research and development activities, applying a 20 percent discount, as well as to request payment from the tax authorities in the event of insufficient quota under the terms established in article 39.2 of the LIS, box [00059] "Options arts. 39.2 and 39.3 LIS" on page 1 of form 200 must be checked first.

In accordance with the provisions of article 39.2 of the LIS, the amount of the deduction applied or paid:

In the case of technological innovation activities, they may not jointly exceed the amount of 1 million euros per year
It may not jointly exceed, and for all concepts, 3 million euros annually , in the case of research and development and technological innovation activities.

Both limits will apply to the entire group of companies, in the case of entities that form part of the same group according to the criteria established in article 42 of the Commercial Code, regardless of their residence and the obligation to prepare consolidated annual accounts.

Additionally, in the event that the research and development expenses for tax period exceed 10 percent of the net amount of the turnover thereof, the deduction provided for in article 35.1 of the LIS generated in said tax period may be excluded from the limit established in the last paragraph of the previous section, and applied or paid with a discount of 20 percent of its amount in the first declaration submitted after at least one year from the end of the tax period in which the deduction was generated, without it having been applied, up to an additional amount of 2 million euros .