O System of Tax Incentives for Business Research and Development (SIFIDE) continues to assert itself as one of the main innovation support instruments in Portugal. More than a tax benefit, this is a strategic tool that allows companies to recover a significant part of the investment made in Research and Development (R&D) activities, reinforcing competitiveness and growth potential.

Against a backdrop of high production costs, pressure on margins and the constant need for innovation, the SIFIDE plays a central role in the financial sustainability of R&D projects, particularly for companies that are committed to a continuous innovation strategy.

O SIFIDE allows a deduction from corporate income tax collection of a significant portion of expenses associated with R&D activities, including applied research, experimental development, creation of new products, processes or services, and/or significant improvements to existing ones. Unlike “traditional” financial incentives, it does not rely on competitions or budgetary allocations, being a automatic tax regime, provided that the legal and technical criteria are met.

All of the following can benefit from SIFIDE corporate taxpayers that carry out R&D activities in Portugal, regardless of its size or sector of activity. Activities can be carried out internally or in collaboration with external entities., such as universities or research centres.

Eligible parties include, amongst others, technical staff costs, acquisition of research services, consumables and raw materials, equipment and software, industrial property, participation in R&D entities and operating expenses. The correct technical and accounting identification and allocation of these expenses is essential to maximise the tax benefit.

SIFIDE it must be integrated strategically from the project planning phase, in coordination with other funding sources, innovation strategies and tax planning. In light of recent legislative and interpretive changes, specialist support is increasingly relevant.

At CONSULAI, SIFIDE is handled in an integrated way, combining technical, fiscal and sector-specific knowledge, from the assessment of eligibility potential through to the monitoring of the application. The true potential of SIFIDE is achieved when it is integrated into a clear innovation and funding strategy.