Research and development: an activity funded by the Administration
norgestión.bi@norgestion.com • www.norgestion.com15/04/2003
In the previous issue was an analysis of the research activities and in this article are dealt with the tax aspects of the so-called "development".
The reading of the normative Prosecutor suggests that activities of r & d (research, development and technological innovation) required as a prerequisite the existence of an organization within the company to perform tasks of research, development and technological innovation.
Regarding the concept of development, understood as the implementation of the outcome of the investigation or any other scientific knowledge for the manufacture of new materials or products, the design of new products or production systems as well as the substantial technological improvement of materialsproducts, processes or pre-existing systems.
This activity includes the realization of new products or processes in a plane, scheme or design, as well as the creation of a prototype non-tradable and the initial demonstration or pilot projects, provided that they cannot become or be used for industrial applications or commercial exploitation.
The design and the preparation of the sample for the launch of new products will also be included.
The deduction for development activities has no regulation specific or different from the research, which is why we refer to the previous issue, being, as I say, both the deduction and the limits exactly the same for both activities.
In summary form, it should be recalled that there is a deduction of 30% of the expenditure in r & d, plus 50% additional for the excess of this type of expenditure on the average of the same in the two previous exercisesplus another 10% cumulative costs on the recruitment of qualified researchers and law enforcement projects at universities, Centre innovation, etc.
It should be noted that the expenditure incurred on r & d tax incentive consists, on the one hand, the account as spending more for the company and, on the other, and in addition, in the application to these costs of the percentage indicatedby lowering the fee to join the corporate income tax. In this way, we could say that in the best case 90% of the costs of r & d of a company finances them administration, via an impairment in taxation
