SIFIDE – System of Tax Incentives for Business R&D

Tax Benefits

SIFIDE II is a corporate income tax credit that allows companies to recover part of their Research and Development (R&D) expenses, based on specific rates. In practice, companies can recover up to 82.5 per cent of their R&D investment

Benefit Status

Open

Benefit

IRC Tax Credit in IRC headquarters

Territory

National Territory

Eligible Entities

SMEs

SIFIDE – System of Tax Incentives for Business R&D

Tax Benefits

SIFIDE II is a corporate income tax credit that allows companies to recover part of their Research and Development (R&D) expenses, based on specific rates. In practice, companies can recover up to 82.5 per cent of their R&D investment

Benefit Status

Open

Benefit

IRC Tax Credit in IRC headquarters

Territory

National Territory

Eligible Entities

SMEs

Incentive Conditions

  • SIFIDE II is a IRC tax credit that allows you to recover part of your Research and Development (R&D) expenses, based on specific rates:
    • Base rate: 32.5% of R&D expenditure in the period;
    • Incremental rate: 50% of the increase in expenditure over the period, compared to the average of the previous two years, up to 1.5 million euros.
  • In practice, companies can recover up to 82.5% of their investment. in R&D.
  • Note: For SMEs:
    • Those with less than two financial years and who have not benefited from the incremental rate have an increase of 15% on the base rate, i.e. 47.5%.
    • In the event that it is not possible to deduct the entire benefit, due to insufficient collection, the surplus will become a tax credit and can be deducted up to 12 years later.

  • The entire national territory.

  • Deduction of up to 82.5% of associated expenses from corporate income tax.

  • This support is aimed at companies subject to Corporate Income (IRC), which:
    • Reside in Portugal or have a permanent establishment in the country;
    • Their main business activity is agriculture, industry, commerce or services;
    • Have no debts to the State
  • The company must be recognized by the National Innovation
  • Agency (ANI) as suitable for Research and Development (R&D) activities.
  • Startups are exempt from this need to be recognized as reputable.

  • Research: Expenditure to acquire new scientific or technical knowledge.
  • Development: Expenditure incurred by exploiting the results of research or other scientific or technical knowledge with a view to discovering or substantially improving raw materials, products, services or manufacturing processes.
    • Costs of personnel involved in R&D (minimum NQF level 4).
    • Operating costs (up to 55% of staff costs).
    • Acquisition of tangible assets, provided they are new or created for R&D activities (except buildings and land).
    • Hiring R&D from public entities, or beneficiaries of public utility status or recognized by ANI.
    • Participation of managers in R&D institutions.
    • Expenditure on the participation of managers and staff in the management of R&D institutions.
    • Participation in the capital of R&D institutions and contribution to public or private investment funds aimed at financing companies dedicated mainly to R&D.
    • Registration, purchase and maintenance of patents.
    • Acquisition of patents for R&D (only for SMEs).
    • R&D-related audits.
    • Demonstration actions of funded R&D projects.

Incentive Conditions

SIFIDE II is a IRC tax credit that allows you to recover part of your Research and Development (R&D) expenses, based on specific rates:
Base rate: 32.5% of R&D expenditure in the period;
Incremental rate: 50% of the increase in expenditure over the period, compared to the average of the previous two years, up to 1.5 million euros.
In practice, companies can recover up to 82.5% of their investment. in R&D.
Note: For SMEs:
Those with less than two financial years and who have not benefited from the incremental rate have an increase of 15% on the base rate, i.e. 47.5%.
In the event that it is not possible to deduct the entire benefit, due to insufficient collection, the surplus will become a tax credit and can be deducted up to 12 years later.

The entire national territory.

Deduction of up to 82.5% of associated expenses from corporate income tax.

This support is aimed at companies subject to Corporate Income (IRC), which:
Reside in Portugal or have a permanent establishment in the country;
Their main business activity is agriculture, industry, commerce or services;
Have no debts to the State
The company must be recognized by the National Innovation
Agency (ANI) as suitable for Research and Development (R&D) activities.
Startups are exempt from this need to be recognized as reputable.

Research: Expenditure to acquire new scientific or technical knowledge.
Development: Expenditure incurred by exploiting the results of research or other scientific or technical knowledge with a view to discovering or substantially improving raw materials, products, services or manufacturing processes.
Costs of personnel involved in R&D (minimum NQF level 4).
Operating costs (up to 55% of staff costs).
Acquisition of tangible assets, provided they are new or created for R&D activities (except buildings and land).
Hiring R&D from public entities, or beneficiaries of public utility status or recognized by ANI.
Participation of managers in R&D institutions.
Expenditure on the participation of managers and staff in the management of R&D institutions.
Participation in the capital of R&D institutions and contribution to public or private investment funds aimed at financing companies dedicated mainly to R&D.
Registration, purchase and maintenance of patents.
Acquisition of patents for R&D (only for SMEs).
R&D-related audits.
Demonstration actions of funded R&D projects.

Other Grants

Job Creation and Entrepreneurship

Entrepreneurship Incentive System

Decarbonization of Businesses

Other Grants

Job Creation and Entrepreneurship

Entrepreneurship Incentive System

Decarbonization of Businesses