Grants for tax deduction
Deductions up to 200,000 € in 3 consecutive tax periods
R&D companies that generate tax deductions that they cannot apply, either because they do not generate profits at the moment and therefore do not pay Corporation Tax, or because they generate more tax incentives than they can absorb.
The Provincial Council of Álava has made a modification to the provincial regulations (it was published in the BOTHA on December 13, 2019 and entered into force on January 1, 2020) and a new article, 64 bis, has been introduced regarding the participation in research and development or technological innovation projects.
The taxpayers of this Tax or of the Non-Resident Income Tax who operate through a permanent establishment, who participate in the financing of projects, carried out by others or other taxpayers of said Tax, of research, development or technological innovation that comply with the requirements established in articles 62 to 64 of this Regional Regulation to generate the right to the deductions established in them, they will have the right to make a deduction of the liquid fee under the conditions and with the requirements established in this article that will be incompatible, total or partially, with the deductions to which those others or those other taxpayers would be entitled by application of the provisions of the aforementioned precepts.
Those R&D companies that generate tax deductions that they cannot apply may be beneficiaries, either because at the moment they do not generate profits and therefore do not pay Corporation Tax, or because they generate more tax incentives than they can absorb, and try to assign its tax incentives for companies that do not carry out R&D, which would benefit from applying these deductions to reduce the payment of their taxes, and obtain financing in exchange without any obligation of return.
https://www.araba.eus/botha/Boletines/2019/149/2019_149_04122_C.pdf (article 64 bis)