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V0163-17 24 January 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por investigación y desarrollo

R&D tax deductions from 1998 and 1999 may be applied in 2014 if the 18-year period has not expired

A company has enquired whether it can apply in 2014 tax deductions for research and development expenses incurred in 1998 and 1999 that were not utilised at the time. The Directorate General for Taxes (DGT) has ruled that, under the applicable regulations, such deductions are subject to an 18-year application period.

The question raised

1. Whether the entity may apply the amounts of the research and development expense deductions, which were generated in the 1998 and 1999 fiscal years and were not recorded, in the 2014 Corporate Income Tax return.

The DGT's ruling

For R&D expenses from the 1998 and 1999 fiscal years, the application period is 18 years pursuant to Royal Decree-Law 12/2012. Therefore, these deductions may be applied in the 2014 and 2015 tax returns, as in both cases the 18-year period from the conclusion of the tax periods in which the expenses were incurred has not expired. The Administration's statute of limitations for verifying these deductions does not affect the taxpayer's right to apply them.

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