Guarantee the success of your R&D Monetization Incentive

Guarantee the success of your R&D Monetization Incentive with FRS Consulting

The cashback or monetization of your R&D Tax Credit (RDTC) is an incentive available in Spain that allows you to obtain liquidity from R&D tax deductions, which is especially beneficial if you do not have to pay Corporate Tax due to being in a loss position or if your tax payment is low due to moderate profits.

Decoding

17.06.24

4 min

Maximize Your R&D Tax Credits in Spain: A Guide to Cashbacks and Monetization

Benefits and Requirements for R&D Tax Credit Monetization

The monetization process allows you to obtain up to 80% of your RDTC figure. However, in order to be able to claim it the company must meet certain requirements that ensures that such company continues to invest in R&D.

The requirements for monetization are the following:

There is a one-year waiting period between the fiscal year the R&D claim was generated and the year the monetization can be claimed.
The R&D investment must be kept for at least another 2 years.
The total workforce of the company or those dedicated to R&D must be maintained for 2 years.
The projects must obtain a Binding Report (Informe Motivado Vinculante, IMV).

The Role of Binding Reports (IMV) and FRS Expertise

A binding report (IMV) is a document issued by authorized bodies that qualify the activities of a project as R&D and/or Technological Innovation within the framework of an annual period. IMVs ensure that an R&D project has been audited technically and economically. As such, they serve as legal assurance, providing companies with greater security in case of an audit by the Spanish Tax Agency.

At FRS, our expertise in R&D innovation incentives covers significantly IMVs and the monetization process as a whole. And it’s not only us who claim so: the quality of our work is visible in the annual ranking prepared by the Spanish General Secretary of Innovation. Each year, they publish data related to IMVs of R&D tax deduction applications for R&D activities. This year’s review covers the consolidated figures for 2022. FRS Innovation Consulting is proud to rank 1^st among other consulting firms in this sector: with 100% of the IMVs applications we have prepared for our clients being granted.

The list of consulting firms and their success rates at obtaining IMVs can be found below:

Thus, if you want to find out more details about this process and be sure that your binding report (IMV) will be granted, don’t hesitate to contact us!

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4 min