A recent report from the Spanish Directorate of Taxes clarifies that the refund deriving from the monetization of the R&D tax credit is not taxable, for Corporate income tax purposes.
✔ The Spanish tax authorities, through the General Directorate of Taxes, have recently issued two reports to clarify the scope of the tax measures affecting tax credits relating to R&D as well as for profit investment.
✔ One of these reports (issued on Feb. 06, 2014) deals with the consideration of non-taxable income deriving from refunds of R&D tax credits.
Subject to compliance of the legal requirements, taxpayers can apply for such refunds, when R&D tax credits cannot be used because of insufficient tax quote, providing these have been generated in fiscal years starting as of Jan. 01, 2013.
✔ The Spanish General Directorate of Taxes clarifies that such income is subject to the regulations provided for tax refunds. Given that the payment relates to a tax credit against the Spanish tax authorities, it is not considered as taxable income, for Corporate income tax purposes.
An efficient measure that, with no doubt, shall be taken into consideration by Spanish companies.