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Learn about the incentive amount, who are the beneficiaries and the requirements.

Deduction to the collection, in tax periods beginning on or after 1 January 2014, of up to 10% of retained profits that are reinvested in applications considered relevant. For micro and small companies, the deduction for 2018 and following years may be made over a 3-year period and may be up to 50% of the taxable income.

For the remaining companies, the deduction can be made over a period of 2 years and may be up to 25% of the taxable income. The maximum amount of retained and reinvested profits, in each tax period, is of €7,500,000 per taxpayer.

 

 

 

IRC taxpayers who cumulatively meet the following conditions may benefit from this regime:

  • The micro, small and medium-sized enterprises
  • Organised accounts
  • The taxable profit is not determined by indirect methods
  • Their tax and social security payments up to date

Relevant applications

Tangible fixed assets acquired in new condition are considered as relevant applications, with the exception of:

  • Land, except when intended for the exploitation of mining concessions, natural and spring mineral waters, quarries, dams and sandpits in extractive industry projects;
  • Construction, acquisition, repair and extension of any buildings, except when allocated to productive or administrative activities;
  • Light passenger or mixed vehicles, pleasure boats and tourism aircraft;
  • Comfort or decoration articles, except for hotel equipment used in tourism;
  • Assets used for activities under concession or public-private partnership agreements entered into with public sector entities.
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