Supreme Court Rules Ministerial Reports Key for R&D&I Tax Deductions
The State Agency of Tax Administration has ruled in recent years denying the application of the tax deduction for Research, Development and Innovation (R&D&I) in the Corporate Income Tax, basing its refusal on certain reports issued by the so-called “IT support teams”.
Article 35.4 of the Consolidated Text of the Corporate Income Tax Law (in force until 2014) included the possibility for IS taxpayers, in order to apply the R&D&I deduction, to provide a report from the Ministry of Science and Technology certifying that they met the necessary conditions to apply such deduction. Therefore, what the SC establishes in its ruling 4893/2024 of October 8, 2024 is that the provisions of said ministerial report are binding for the AEAT and, therefore, if the ministerial report is favorable to the application of the deduction, the same cannot be denied to the taxpayer.
It is also established that these IT support teams constitute bodies dependent on the Tax Administration, which are not empowered to pronounce on the requirements that R&D&I projects must meet and, therefore, do not have the power to distort what has been established by the Ministry of Science and Technology.
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