Deduction for research and development and technological innovation activities

Article 35 of the LIS establishes a deduction from the total tax for carrying out research and development and technological innovation activities, the calculation of which must take into account the amount of research and development expenses and, where applicable, investments in tangible and intangible fixed assets, excluding buildings and land. Letter b of section 1 states that the research and development expenses that are included in the base of the deduction must correspond to activities carried out or amounts paid to carry out said activities in Spain or in any Member State of the EU or the European Economic Area. The same wording is included in section 2.b) for technological innovation expenses.

Therefore, as of January 1, 2021, the expenses assumed by the different Spanish entities that pay corporate tax as a result of research and development and technological innovation activities in the United Kingdom will not be included in the calculation of the deduction base for carrying out this type of activities.