SIFIDE is a tax instrument with unique characteristics, which allows creating an appropriate environment for increasing investment in R&D.
Within the scope of this incentive, the following are considered:
Research expenses, are those incurred by the taxpayer with a view to acquiring new scientific or technical knowledge.
Despesas de desenvolvimento, are those incurred by the IRC taxpayer through the exploitation of the results of research work or other scientific or technical knowledge with a view to the discovery or substantial improvement of raw materials, products, services or manufacturing processes.
IRC taxpayers resident in Portugal whose main business is of an agricultural, industrial, commercial or services nature and non-residents with a permanent establishment in that territory, who have incurred R&D expenses and who have been recognised by the Agência Nacional de Inovação, S. A. as being of good repute in terms of research and development. Agência Nacional de Inovação, S. A.
The period for submitting applications to SIFIDE II runs, at the Agência Nacional de Inovação, until the end of the 5th month of the year following that of the tax year. Agência Nacional de Inovação
Thus, for companies whose tax year coincides with the calendar year, the deadline for applications for this programme is normally 31 May.(*)
(*) By joint order issued by the Ministry of Economy and Digital Transition, the Ministry of Science, Technology and Higher Education, and the Ministry of Finance, dated 3 May 2021, the deadline for submission of applications to SIFIDE for the tax year 2020 has been extended and can be made until 30 June 2021.
Deduction to the IRC collection and up to its competition, of the amount corresponding to R&D expenses in the part that has not been subject to a non-refundable State financial contribution, carried out in the tax periods beginning between 1 January 2014 and 31 December 2025, at a double percentage:
Note: In the case of SMEs that have been in business for less than two years and have not benefited from the Incremental Rate, a surcharge of 15% is applied to the Base Rate (47.5%).
In case it is not possible to deduct the total amount of the benefit calculated, due to insufficient collection, the remaining amount will remain as a tax credit, which can be deducted until the eighth year following. (*)
(*) – Under the terms of Law 21/2021, of 20 April, the counting of the time limit for the deduction of taxable income provided for in no. 4 of article 38 of the IRC Code is suspended during the 2020 tax period and during the following tax period. Under the terms of the same law, the effects of this extraordinary measure will be retroactive to 1 January 2020. – This means that the tax benefits assessed in 2020 and 2021 under SIFIDE may remain in tax credit for a period of 10 years.
These are data from 2019, it is an exercise that is still under evaluation and that way there are a large number of applications that are waiting for approval. You can consult all the updated data on the official website of the National Innovation Agency, S.A.
Applications received
Declared investment in r&d (million euros)
Applications approved
Investment in r&d calculated (million euros)
Tax credit allocated (million euros)