A special tax regime that helps to encourage and boost business innovation. Ampliar información Ayudas a la Innovación Deducciones fiscales I+D+i Activación de Gasto Bonificaciones personal investigador Patent Box Ayudas a la Innovación Deducciones fiscales I+D+i Activación de Gasto Bonificaciones personal investigador Patent Box ¿What is patent box? The Patent
Nowadays, many companies are seriously considering carrying out various research projects as a way of achieving greater competitiveness and improving their position in the market. In this sense, it is essential to properly account for these activities, since not only does their implementation not constitute an expense, but the amount of capital invested can be transformed into an asset integrated in the company’s balance sheet as if it were a fixed asset.
WHAT IS THE ACTIVATION OF R&D SPENDING?
The capitalisation of research and development project expenses is an accounting tool that enables research and development project expenses to be moved from a group 6 account (profit and loss account) to a group 2 account (balance sheet), so that the expense is no longer allocated in one year but spread over several years through amortisation.
WHAT ARE THE REQUIREMENTS FOR EXPENDITURE TO BE ACTIVATED?
Para que los gastos asociados a un proyecto de Investigación y Desarrollo puedan ser activados, deben cumplirse las siguientes condiciones:
- Debe existir un proyecto específico e individualizado.
- La asignación, imputación y distribución temporal de los costes deben estar claramente definidas
- Deben existir motivos fundados de éxito técnico en la realización del proyecto, así como estar garantizada la rentabilidad económico-comercial del proyecto.
- La financiación del proyecto debe estar razonablemente asegurada.
what impact does the activation of expenditure have?
The activation of research and development project expenses has a double impact:
– It implies an improvement in the pre-tax income statement.
– It implies an increase in the value of the company by increasing the amount of its assets.
Find out how Euro-Funding
helps you in activating spending
Euro-Funding analyses, quantifies and documents research and development assets, supporting the application of this mechanism. We carry out the following functions:
– Identification of Research and Development projects.
– Preparation of reports Evaluation of expenses incurred in each project.
– Justification of the fulfilment of the necessary conditions for activation.
WHY ARE WE EXPERTS IN ACTIVATING SPENDING?
We are experts in calculating the activation for research expenditure. We carry out an exhaustive analysis of compatibility with other incentives.
We advise you at all times and answer any type of doubt or query you may have in relation to the application of this tool.
Benefits of activating
spending in your company
It is a very good way to increase the value of the entity, thus recognising the value of its intangible assets. Activating your company’s intangible assets provides you with a series of benefits:
- The image of your company is strengthened: The application of this tool denotes future growth in the eyes of third parties, by having an intangible asset with economic value.
- Substantially improves EBIT: It has an impact on the expenses carried out by the company, which substantially improves the pre-tax result.
- Delays the payment of taxes: Since there is the possibility of taking advantage of the freedom of amortisation, the increase in the result for the year may not always translate into higher tax payments.
Relationship between R&D tax deductions and expenditure activation
Many companies hesitate when it comes to activating their research and development expenses and, above all, how this activation may affect the tax deductions for R&D&I in corporate income tax. It is therefore necessary to clarify the relationship between the two issues, one fiscal and the other accounting.
- As far as taxation is concerned, R&D deductions are regulated in article 35 of the Corporate Income Tax Act. In terms of taxation, this refers to research and development on the one hand, and technological innovation on the other, with different deduction percentages.
- As far as accounting is concerned, research expenses are included on the one hand, and development expenses on the other, with completely different activation requirements.
Therefore, the activation for R&D expenses is completely independent of the tax deductions generated by this type of expenses. The standard does not oblige companies to capitalise R&D expenses for accounting purposes in order to obtain R&D tax deductions, establishing a clear accounting-fiscal differentiation. We can thus state that tax deductions for R&D&I are compatible with the activation of expenses, but there is no obligation to access the aforementioned deductions.
Why trust in Euro-Funding?
Network of partners
We carry out continuous institutional work in collaboration with different state and autonomous community bodies, economic agents, sectoral associations, business schools and technology centres.
These alliances involve different joint actions such as the preparation of sectoral reports and the holding of conferences all over the world. Our long experience in the world of public funding has allowed us to maintain a close relationship with the Administration and the bodies that manage the different public funds.
We develop a continuous institutional work collaborating with different state and autonomic organisms, economic agents, sectorial associations, business schools and Technological Centres.
At Euro-Funding we have developed our own Integrated Management System consisting of: ISO 9.001 Quality, ISO 14.001 Environmental, ISO 50.001 Energy Management and Information Security Management 27.001.
We are subscribed to the United Nations Global Compact in the areas of human rights, labour, environmental protection and anti-corruption, complying with the ten Principles of the Compact, as established in its Code of Ethical Conduct.
We have been calculating and registering our Carbon Footprint in the Registry of the current Ministry for Ecological Transition and Demographic Challenge since 2014, maintaining a constant reduction of emissions.
We have the seal awarded by the Generalitat de Catalunya through ACCIÓ. It identifies professionals with the most suitable profile to offer personalised and expert support to companies through ACCIÓ’s aid programmes.
Experience and results
More than 20 years in project finance. Around 46,500 projects managed and more than 5,940 million euros of financing and savings obtained for our clients.
Euro-Funding’s team is made up of around 200 engineers with financial backgrounds, spread across all our offices in A Coruña, Barcelona, Bilbao, Madrid, Seville and Valencia.
OTHER RELATED SERVICES
The tax deductions associated with carrying out Research and Development (R&D) and Technological Innovation (TI) projects make it possible to reduce the payment of Corporate Income Tax by up to 42% of the expenses incurred. It is a very flexible financing instrument as it depends on the R&D performance of
The bonus for research personnel is an incentive that allows a 40% reduction in the employer’s social security contribution for common contingencies for personnel dedicated exclusively to R&D&I activities (with a maximum of 15% of their time dedicated to complementary training or dissemination activities). Ampliar información Ayudas a la Innovación
We help you in the management of opportunities to help you get grants related to innovation projects. Our business model is based on the specialisation of our teams. We have a high level of regulatory knowledge and a close relationship with the relevant administrations to advise you on your project.