SIFIDE – System of Tax Incentives for Business R&D
SIFIDE – System of Tax Incentives for Business R&D aims to increase the competitiveness of companies by supporting their efforts in Research and Development (R&D) through the deduction of R&D expenses from the corporate income tax (IRC).
SIFIDE was created in 1997 as a measure to stimulate the participation of the business sector in the overall R&D effort. The experience resulting from its implementation shows that this mechanism has contributed to an effective increase in R&D activity by Portuguese companies.
SIFIDE II came into effect in 2011 with the introduction of some changes to the legislation that make it even more attractive for companies.
The registration must be made by the person responsible for the company, who may assign the responsibility for preparing and submitting the application to the Application Manager (for example, another employee or an external company).
Once registered, the Application Manager will have access to the company’s data after authorization from the company’s representative.
To use your portal securely, you must authenticate yourself using the Digital Mobile Key (CMD) or the Citizen Card (CC).
FORESEEN R&D ACTIVITIES
Research expenses
Incurred by the IRC taxpayer to acquire new scientific or technical knowledge.
Development expenses
Incurred by the IRC taxpayer through the exploitation of results from research work or other scientific or technical knowledge, aimed at discovering or substantially improving raw materials, products, services, or manufacturing processes.
ELIGIBLE EXPENSES
- Expenses with staff directly involved in R&D tasks (If PhD, it is considered at 120%)
- Operating expenses (up to 55% of staff expenses)
- Acquisition of tangible fixed assets
- Participation in the capital of R&D institutions and contributions to Investment Funds
- Costs with the registration, acquisition, and maintenance of patents
- Expenses with R&D audits
- Participation of management staff in the administration of R&D institutions
- Contracting R&D activities with public entities (or with status) or reputable entities recognized by ANI
- Expenses with demonstration actions
Expenses related to R&D activities associated with eco-design product projects are considered at 110%.
APPLICATION DEADLINES
The application must be submitted by the end of the fifth month of the year following the fiscal year.
INCENTIVE GRANTED CALCULATION
SIFIDE offers a base rate for tax deduction from taxable income of 32.5% of R&D expenses. In addition, an incremental rate of 50% of the increase in this expense compared to the average of the previous two years is applied, up to a limit of €1.5 million.
In practical terms, this support can result in recovering up to 82.5% of the R&D investment.