SIFIDE Funds: What's New?
The Tax Authority recently issued a crucial clarification on the rules applicable to investments in SIFIDE funds. This information, published on the 20th, is essential for all investors and Research and Development (R&D) companies.
Applicable rules
As a result, contributions made between 1 January 2021 and 31 December 2023 to SIFIDE funds follow the rules laid down in the law before the changes introduced in May last year. This clarification is therefore essential to ensure that investors fully understand the legal framework for their investments.
Realising the Investment
Notably, R&D companies financed by SIFIDE funds must realise the investment received before 1 January 2021 within three years, starting on 1 January of this year. In this way, this rule ensures that the funds are applied effectively and within a well-defined timeframe.
New requirements
One of the most significant changes introduced to the SIFIDE fund rules is the obligation to hold units in the fund for ten years instead of five. In addition, the minimum percentage of the fund's investment in R&D companies has increased from 80% to 90%. Despite the increase in the percentage, the investment period for these companies was reduced from five to three years.
Tax benefits
To summarise, SIFIDE offers a basic rate of tax deduction from taxable income of 32.5% of R&D expenditure. In addition, there is an incremental rate of 50% of the increase in this expenditure compared to the average of the previous two years, up to a limit of 1.5 million euros. In this way, such support can allow up to 82.5% of R&D investment to be recovered, making it a powerful incentive for companies investing in innovation.
Combating Abuse
In order to combat identified abuses, especially in the context of indirect investments through funds, the government changed the law to tighten the rules. In fact, the General Inspectorate of Finance's audit in January 2023 identified 3.19 million euros of undue tax credit. These new rules aim to increase the transparency and effectiveness of SIFIDE funds.
Serro & Andrade can help.
With all these changes and clarifications, it is essential that investors in SIFIDE funds are well informed and prepared to comply with the new requirements. For all clarifications and investment support, look for Serro & Andradespecialists in guiding and managing R&D investments.
Be sure to keep up to date with these new rules and make the most of the tax benefits offered by SIFIDE funds. Indeed, the innovation and development of companies depends on informed and strategic management of their investments.
