• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/14/2013

Spain - R&D and investment tax credits; "patent box" regime 

October 14: New law in Spain includes:
  • Provisions for a tax credit relating to certain research and development (R&D) and technological innovation activities—including provisions allowing the government to make a grant to the taxpayer for the amount of unused R&D tax credits when there is insufficient corporate income tax against which to apply the tax credits
  • Provisions for a reduction of tax on earnings from certain intangible assets under an enhanced “patent box” regime
  • A tax credit with respect to hiring disabled workers
  • A tax credit for the reinvestment of profits by certain entities, of up to 10% of the amount of annual profits reinvested in new property, plant and equipment or investment property for business purposes
  • Provisions to stimulate economic growth, including a “super-reduced” tax rate (15% up to €300,000, and 20% over that amount) for the first and second tax period in which a new business generates positive taxable income

These measures are contained in Law 14/2013 (27 September 2013), as published in Spain’s official gazette on 28 September 2013.

In general, the provisions are effective retroactively—i.e., for tax period beginning on or after 1 January 2013.

The patent box regime provisions are effective with respect to the assignment of intangible assets made from 29 September 2013.

Read an October 2013 report [PDF 67 KB] prepared by the KPMG member firm in Spain: New CIT measures introduced by Law 14/2013 of 27 September 2013, on support for and the internationalisation of entrepreneurs

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