SIFIDE: What is it? How does it work? How can I apply?

The Tax Incentive System for Corporate Research and Development (SIFIDE) is a valuable opportunity that many companies are unaware of or underestimate. This benefit offers a substantial tax incentive, reducing the Corporate Income Tax (IRC) to be paid. The best part? Your company doesn't need to make extraordinary investments or have complex projects to be eligible. In this article, we will explore what SIFIDE is, how it works, and how to submit an application.

What is SIFIDE?

SIFIDE has a clear purpose: to boost company competitiveness by supporting their Research and Development (R&D) efforts. It allows for the deduction from the IRC tax liability of expenses related to R&D, including:

• Research expenses: Those related to the acquisition of new scientific or technical knowledge.

• Development expenses: Related to the exploitation of research results or other knowledge to improve products, services, processes, or raw materials.

How do I know if what my company does is considered R&D?

To determine if what your company does falls within the scope of SIFIDE, the key is to identify elements of innovation and the resolution of scientific or technological uncertainties. This can be present in products, production processes, problem-solving, or even in less obvious areas.

What is the incentive rate?

Companies eligible for SIFIDE can benefit from a rate that can reach up to 82.5%:

• Base rate: 32.5%.

• Incremental rate: 50% of the increase in expenses compared to the average of the two previous fiscal years, up to 1.5 million euros.

• Small and Medium-sized Enterprises (SMEs) with fewer than 2 years of activity and that have not used the incremental rate receive a 15% increase on the base rate.

• Expenses not deducted due to insufficient tax liability can be carried forward for up to the 12th subsequent fiscal year.

What are the eligible expenses?

• Acquisitions of tangible fixed assets;

• Personnel expenses (Qualifications Level ≥ 4);

• Expenses involving the participation of managers and executives in the management of R&D institutions;

• Operating expenses (55% of personnel expenses);

• Expenses related to contracting R&D activities from officially recognized entities;

• Participation in the capital of R&D institutions and contributions to funds intended to finance R&D;

• Costs for registration and maintenance of patents;

• Expenses for the acquisition of patents;

• Expenses for R&D audits;

• Expenses for demonstration actions resulting from supported R&D projects.

How to submit the application?

The application process is relatively simple:

1. Fill out and submit the electronic form available at http://sifide.ani.pt .

2. Applications for the previous fiscal year can be submitted until the end of the fifth month of the following year.

3. The National Innovation Agency (ANI) will evaluate the application and issue a declaration certifying the R&D activities carried out and the tax credit to be granted.

4. This declaration, together with the application form and annexes – which include, for example, an R&D trial balance supporting the costs presented – constitute the tax dossier. 

5. When paying the tax, enter the tax benefit value in the "Modelo 22" form, deducting it from the tax payable.

How far in advance do I need to prepare the application? And can I do it myself?

To increase the probability of approval, it is crucial to prepare R&D projects in a structured and timely manner. This involves keeping detailed records of the activities performed and the challenges faced. Although it is possible to carry out this process on your own, it can be complicated to fit the management of these projects into the company's day-to-day operations. Often, a lack of records makes it difficult to gather project-related information throughout the year.

We recommend considering the help of a specialized partner to ensure the maximization of the benefits to be received. With careful planning and expert guidance, SIFIDE can become a valuable ally for your company's growth and innovation. Therefore, do not miss the opportunity to explore this tax benefit and boost your company's development through R&D.

Until when can I submit the SIFIDE application? 

You can submit your application until the end of the 5th month of the year following the fiscal year. If you haven't applied yet, there is still time to do so; schedule a meeting now, without obligation. 

Apply Now Practical SIFIDE Guide