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Deduction for technological innovation: How does it work?

Posted: Tue Dec 17, 2024 4:48 am
by Aklima@4
Find out how the deduction for technological innovation works in corporate tax, one more reason to invest in innovation.

Companies that invest in innovation have increased their revenue five times faster than the rest.
The basis for the deduction must be the amount of the period of technological innovation expenses.
To innovate or not to innovate. That is the question. Nowadays, many companies are leaning towards technological innovation. In recent years, investment in technology oil and gas email list has increased and this is something that has been accelerated, in large part, by the pandemic. A study by Accenture shows that companies that invest in technological innovation have increased their income five times faster than the rest. This action also brings benefits such as the deductions that these companies can enjoy.

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What is the deduction for technological innovation?
When companies invest in innovation, they can benefit mainly from two types of deductions. One is the deduction for research and development (R&D) activities, while the other is for technological innovation activities.

In order to qualify for deductions, the company's activity must be technological innovation. The Corporate Tax Law classifies this type of activity as those that result in a technological advance. Activities that result in a new product or production process that introduces improvements to existing ones may also be identified as such .

Likewise, the materialization of new products or processes and the creation of prototypes that are not marketable will be contemplated, as well as those initial demonstration projects or pilot projects in all sectors.