3,660 companies benefited from SIFIDE in 2022. What about yours?

During the year 2022, the Tax Incentive System for Business Research and Development (SIFIDE II) stood out in the fiscal landscape, representing approximately one-third of the tax expenditure regarding Corporate Income Tax (IRC).

According to the Tax Expenditure Report presented by the Ministry of Finance regarding 2022, the deductions from tax liability attributed through SIFIDE resulted in a tax expenditure of 444.6 million euros, demonstrating a 5.5% increase compared to the previous year.

Data made available by ANI records that, in 2022, 4,391 applications were submitted, 880 more than in the previous year. In total, €2,298.6M was declared in R&D investment, representing a growth of 40.5% compared to the previous year. In terms of requested tax credit, there was a growth of 45.5%, reaching a total value of €1,022.6M and representing, on average, €232.9k of tax credit per application. This growth reflects the continued interest of companies in taking advantage of the benefits offered by SIFIDE and the importance of R&D investment for their innovation and competitiveness.

The new bill, approved on 29 March 2023, provides for a set of measures aiming to promote and incentivise company investment in R&D activities, namely:

• The majoration of expenses with R&D activities associated with product eco-design projects is increased from 110% to 120%;
• The carry-forward period for expenses that have not been deducted due to insufficient tax liability is increased from 8 to 12 years;
• The validity period for the recognition of the entity's suitability regarding research and development has been increased from 8 to 12 years.

Companies' continued interest in investing in R&D reaffirms the importance of these policies for the country's economic growth and innovation.

The figures presented by ANI highlight the relevant role of SIFIDE in the IRC tax structure. The increase in deductions from tax liability, the inclusion of new categories of eligible expenses, and the impact of other tax regimes contributed to this growth.

Why should you benefit from SIFIDE? Did you know you can save up to 82.5% on IRC through this tax benefit?

This tax benefit granted to companies investing in R&D allows for recovering up to 82.5% of the R&D investment value of a given year, through the deduction of expenses from the IRC payable.

This fiscal instrument focuses on expenses resulting from the companies' normal activity, such as personnel costs and material acquisitions. As such, organisations do not need to make investments not foreseen in their normal activity and/or define and structure projects in advance.

Reducing your tax burden doesn't have to be that complex. Just look at our experience! 🚀

▶️98% Approval Rate

▶️€500M Total Approved Investment

▶️€31M Tax Benefits attributed

Do not miss this opportunity to reduce your tax burden. Schedule a no-obligation conversation with our specialists to validate the eligibility of your company's activities for SIFIDE.