SIFIDE

SIFIDE (Sistema de Incentivos Fiscais à Investigação e Desenvolvimento Empresarial) is a tax incentive programme granted to companies that carry out research and development activities and/or invest in venture capital funds that invest in companies with the same profile.

Companies can claim a corporate income tax benefit of 32.5% of the venture capital fund's investment.

The SIFIDE incentive is designed to support a wide range of Research and Development (R&D) activities. It recognizes and values all forms of creative work that are carried out systematically, with the aim of increasing knowledge and applying this knowledge in new and innovative ways, as defined by the Frascati Manual, 2002.

Research expenses are incurred by the IRC taxpayer to acquire new scientific or technical knowledge. Development expenses are incurred by the IRC taxpayer to exploit the results of research work or other scientific or technical knowledge to discover or substantially improve raw materials, products, services, or manufacturing processes.

SIFIDE benefits: Which entities can benefit from this regime?

All IRC taxpayers resident in Portugal who carry out an agricultural, industrial, commercial or service activity as their primary activity, as well as non-residents with a permanent establishment in the country, who have incurred R&D expenses and who have been recognised by the Agência Nacional de Inovação, S.A. as being suitable for research and development may benefit from the tax incentive.

Application period for SIFIDE?

Applications to SIFIDE II must be submitted by the end of the 5th month of the year following the financial year. Applications for years prior to this tax period are, therefore, not accepted.