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.
Some examples of intangible assets that could be activated are the development and design of new prototypes, new materials or devices or products. All of this provided that they have guarantees of technical success and are economically profitable.
The Activation of expenses in research and development projects is a tool that allows the expenses of research, development and technological innovation projects that generate an intangible asset to be moved to the balance sheet, thereby improving the pre-tax result.
With the Activation of Expenses, these intangible assets generated from a research and development project are no longer accounted for as expenses, and are now included in the balance sheet as intangible assets, generating a great fiscal and accounting impact on the company.
In order to make use of this tool, entities have to follow the following requirements:
When an R&D expenditure meets the requirements to be activated, the following aspects need to be taken into account for its calculation:
At Euro-Funding we analyse, quantify and document the activation of your expenses so that the auditors can validate it. We prepare a report for each intangible to be activated and we guide you in the justification so that it meets all the requirements. We perform the following functions:
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 questions or queries you may have regarding the application of this tool.
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.
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.
At Euro-Funding we offer support throughout the entire process of identifying, processing and justifying grants. If you have a project and you are looking for grants or subsidies to finance it, contact us and maximise the return on each project.
Around 200 engineers with financial training make up the Euro-Funding team, spread across all our offices in A Coruña, Barcelona, Bilbao, Madrid, Seville and Valencia.
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.
Patent box is an incentive that allows a tax reduction of up to 60% on income derived from the assignment or transfer of the right to use certain intangible assets. Ampliar información Ayudas a la Innovación Deducciones fiscales I+D+i Activación de Gasto Bonificaciones personal investigador Patent Box Ayudas a la
The tax deductions associated with the execution of Research and Development (R&D) and Technological Innovation (TI) projects allow a reduction in the payment of Corporate Income Tax of up to 42% of the expenses incurred. It is a very flexible financing instrument since it depends on the R&D&I performance of
With the aim of promoting research into new technologies, Public Procurement of Innovation (PPI) was created, which consists of the acquisition by the Public Administration of technology developed by private companies. The other fundamental actor is the innovative companies that develop the technology and the research organisations that will use
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.