Webinar Summary: Maximize
Your 2020-2022 Tax Strategy

Tax incentives are some of the great opportunities that companies have when it comes to recovering the money invested in previous years. On November 12, 2020 took place the webinar “Maximize your tax strategy 2020-2022” in which our colleague Victoria Palau, Key Account Manager of Euro-Funding with more than 16 years of experience in the management and execution of projects in the area of innovation, commented on some of the fiscal financing instruments that exist for R&D.

During the session our colleague explained the process of applying a tax deduction for R&D activities depending on the type of project, differentiating between innovation and development or technological innovation projects. In this way, she reviewed the phases to be able to obtain this instrument and showed a practical case of obtaining this type of benefits within the exercise of a company.

After the detailed explanation of the tax deduction, María Victoria explained other options for those companies that cannot apply this instrument in the Corporate Tax, which are:

• Monetization: Alternative for those entities that cannot apply the deduction either due to insufficient quota (negative result in the Corporate Tax) or for exceeding the joint limit of application of the deductions.

This instrument allows to request the refund of 80% of the deduction generated to the Tax Administration, or to apply without limit such amount directly on the payment of the Corporate Income Tax.

• Tax lease: The incorporation of an Economic Interest Grouping (EIG) arises when a company developing an R&D&I project cannot apply the tax deduction to its activity.

It is at that moment when the deduction is taken advantage of by transferring it to investors in charge of directly financing the activity.

Next, María Victoria explained what the activation of R&D expenses consists of, stressing that “in order to obtain this tool, the requirements are to be specifically individualized by project and its cost clearly established so that it can be distributed over time, as well as to have well-founded reasons for technical success and the economic-commercial profitability of the project or projects in question”.

Finally, our colleague reviewed what the patent box instrument consists of, highlighting that “it makes it possible to complete the financing of innovative projects through a reduction of up to 60%(1) of the taxation of income derived from the assignment or transfer of certain intangible assets”.

At Euro-Funding we focus on offering customized financial solutions to each of the innovative companies we work with. We assist our clients in defining a strategy for raising public funds, addressing both the obtaining of grants and credits as well as tax incentives. During the process, our technical team develops a financing scenario that takes into account both the projects already developed by the company and future investment plans