Are you performing R&D activities? If the answer is yes or maybe, you should read our post to discover how R&D in Spain with the advantageous Spanish Corporate income tax regulations can benefit your company.

We inform you that Spain has maintained most of the current tax measures to reinforce R&D activities, by granting substantial tax relief in fiscal years 2015 and onwards.

✔The most commonly applied by Spanish taxpayers relates to the R&D tax credit, that implies a direct reduction of the final Corporate income tax.

A 25% of the R&D expenses can benefit from this tax credit. This percentage can increase to 42% for expenses exceeding the average of those incurred in the two preceding years.

✔Besides, the following additional items can reduce your company’s final Corporate income tax, when they are exclusively dedicated to the R&D activities:

(i)               17% of research personnel expenses; and,

(ii)             8% of investments in tangible (excluding immovable properties) and intangible assets.

✔ Although they are generally subject to a limit on the tax quote, of 25% or 50% based on the proportion of the tax credit in relation to the tax quote, such limit can be avoided by discounting 20% of the tax credit. Taxpayers can also apply for their refunds, when R&D tax credits cannot be used because of insufficient tax quote.

New Spanish Corporate income tax advance payments

Measures to take into account by Spanish tax payers, given the substantial tax advantages that they offer.

Publicado el 12-2014 por PBS