SIFIDE
The SIFIDE II application form for the 2024 period is now available! The submission deadline is May 31, 2025.
SIFIDE II is a tax incentive designed to support companies that incur expenses related to Research and Development (R&D) activities. This tax benefit allows companies to deduct up to 82.5% of their R&D related expenses from their corporate income tax (IRC).
Some relevant eligible expenses include:
- Personnel expenses related to R&D activities
- Acquisition of fixed assets used for R&D
- Operating expenses
- Expenses related to R&D audits
- Costs associated with the registration, acquisition, and maintenance of patents
- Expenses for demonstration activities arising from R&D projects
Discover this and other tax benefits at: Link
Examples of R&D Projects
Development of new AI-based software
- Sector: Information Technology
- Description: A technology company is developing innovative software based on machine learning to predict failures in industrial equipment. The project involves research and development of new algorithms, as well as testing and validation using real-world data.
- Eligibility: This project qualifies as it includes applied research and experimental development, both essential for creating a new product or service.
Creation of a new biomaterial for sustainable packaging
- Sector: Industry and Sustainability
- Description: A plastics company is researching new biodegradable compounds to replace conventional packaging materials. The project involves laboratory testing, prototyping, and material validation to ensure durability and performance.
- Eligibility: This project qualifies as it involves research and experimental development, contributing to innovation in the sector and promoting the circular economy.
Practical Case Study
A small company, operating for 5 years, incurred €500,000 in R&D expenses in 2024. In 2023 and 2022, the company incurred 200,000 and €100,000 in R&D expenses, respectively.
How much tax benefit can the company obtain for 2024?
Scenario I - R&D investment without project funding
Assuming that the 2024 R&D expenses were not supported by any financial incentive:
Tax benefit: 32.5% ∗ 500,000 + 50% ∗ (500,000 − ((200,000+100,000) / 2)) = €337,500
Scenario II - R&D investment with project funding
Assuming that the 2024 R&D expenses were part of an SI I&DT project co-financed under the P2030 program, with a 60% non-repayable grant:
Tax benefit: 32.5% ∗ 500,000 ∗ (100%−60%) + 50% ∗ (500,000 ∗ (100% −60%) − (200,000+100,000) /2) = €90,000
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For more information about this and other tax benefits, contact us at: projetos@streamconsulting.pt
