Tax deductions for R&D&I activities are a powerful tool to promote innovation in companies. They not only allow recovering part of the investment made but also boost competitiveness by promoting the development of differentiated products and processes.
From the creation of new prototypes to the substantial improvement of existing products, tax advantages offer a direct incentive for companies to bet on change and technological progress.
At the Economic Office of Galicia, we help you identify all the tax advantages applicable to your Research and technological innovation activities. Don’t miss the opportunity to optimize your investment in innovation and discover how a specialized advisory system can make a difference in your company.
Tax deductions and benefits for R&D&I aim to recognize the effort made by companies in the field of innovative activities. It is therefore one of the most interesting deductions for companies as they are applied directly to the tax payable and not to the taxable base.
What is considered Technological Innovation?
Technological innovation, small i or IT, encompasses activities in which the result represents a technological advance that leads to new products, production processes, or substantial improvements to existing ones.
What is included?
From the design of non-marketable plans, schemes, or prototypes; pilot projects or initial demonstrations, such as in the animation or video game industry; and the creation of textile, footwear, furniture, wood samples, among others, provided they are not suitable for industrial applications or for commercial exploitation.
What are the essential criteria for technological innovation?
1. Novelty or substantial improvement
Innovation must involve an essential change in the intrinsic characteristics of a product or process.
2. Technological scope
Advances must occur from a technological point of view, not limited to aesthetic or formal modifications.
3. Subjective perspective
The product or process is not required to be unique in the market, but it must at least be new for the company developing it, in line with the Oslo Manual (2005).
What is considered R&D&I?
R&D&I is the original and planned inquiry that seeks to discover new knowledge to promote its development for the manufacture of new materials or products, their technological improvement, or for the design of new production processes and systems.
What is included?
- The design and elaboration of samples for the launch of new products.
- The materialization of new products or processes in a plan or design, as well as the creation of a first non-marketable prototype or pilot project.
- The creation, combination, and configuration of advanced software, through new algorithms or operating systems, interfaces, and applications aimed at the development of new products, processes, or services.
Are they compatible with other grants or loans?
Tax deductions for R&D&I are compatible with other incentives such as grants and loans, although with some particularities.
What is the percentage of deduction for R&D&I activities?
- Research and Development (R&D):
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- 25% of expenses in the tax period.
- 42% on the excess of expenses that exceed the average of those made in the two previous years.
- 17% additional for qualified personnel expenses dedicated exclusively to R&D activities.
- Technological innovation:
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- 12% of expenses incurred in this concept.
