On July 17, 2025, the Central Economic-Administrative Court (TEAC) issued two key rulings (RG 5685/2024 and RG 1267/2025) that standardize the criteria applicable to tax deductions for Research, Development, and Technological Innovation (R&D&I) activities under the Corporate Income Tax. This decision marks a milestone for innovative companies, as it provides greater regulatory clarity and strengthens legal certainty in an area that, until now, had been fraught with significant uncertainties.
A New Framework for R&D&I Deductions
Until recently, many companies followed the guidelines established by the General Directorate of Taxes (DGT), which allowed them to claim R&D&I deductions generated in prior fiscal years, even if they had not been included in the initial self-assessment. Binding rulings such as V-802-2011, V-0297-2012, and V-2400-2014 supported this approach, giving companies some flexibility to plan the use of their tax incentives.
The situation changed in June 2022, when Binding Ruling V-1511-2022 introduced a much more restrictive approach. From that point on, deductions could only be claimed if they were included in the tax return for the corresponding fiscal year or if an amendment was requested within the statutory deadlines. This change caused uncertainty and created risks for companies with R&D&I projects, which could lose significant tax benefits.
TEAC Rulings: Two Distinct Systems
In its July 2025 rulings, the TEAC definitively clarifies the situation and identifies two distinct scenarios:
1. Self-assessments prior to June 24, 2022
The TEAC adheres to the interpretation in effect prior to Advisory Opinion V-1511-2022. Therefore, R&D&I deductions generated before that date may be claimed in subsequent tax years without the need to amend the initial self-assessment, provided that the right to claim them has not expired.
This represents a significant opportunity for companies that, for strategic or planning reasons, did not take full advantage of their deductions at the time. They will now be able to claim them and optimize their tax burden.
2. Self-assessments effective June 24, 2022
In subsequent rulings, the TEAC reaffirms the mandatory nature of the new criterion. That is to say:
- Deductions must be included on the original tax return.
- If they are not reflected, you will need to request a correction within the established time frame.
For businesses, this means strengthening internal controls and tax management processes to ensure that an administrative oversight does not result in the loss of significant tax benefits.
Strategic Implications for Innovative Companies
The new framework provides legal certainty in an area that is particularly sensitive for companies with investments in R&D&I.
Among the main impacts are:
- Reclaiming Unused Tax Deductions: Organizations with projects dating back to before 2022 have the option to review closed fiscal years and apply tax deductions that have not yet been used (provided they are within the statute of limitations).
- Freeing up resources for innovation: Optimizing the tax burden allows capital to be redirected toward new technological developments.
- Call for greater oversight and planning: In fiscal years after 2022, deductions will require more rigorous management and comprehensive documentation from the start of each project.
An Opportunity to Review the R&D&I Tax Strategy
The current regulatory framework, combined with recent rulings by the TEAC, provides an ideal context for analyzing and redesigning the management of tax deductions.
Companies have up to 18 years to utilize the profits generated, which expands their strategic options. This makes this moment a key opportunity to:
- Comprehensive review of tax balances: identify deductions that have been generated but not claimed.
- Update to internal policies: Ensure that all R&D&I projects are properly documented from the outset.
- Designing Long-Term Tax Strategies: Integrating Innovation as a Central Element in Optimizing Resources and Tax Benefits.
A more predictable fiscal framework that fosters innovation
With these rulings, the TEAC establishes a more stable and predictable environment for companies that invest in R&D&I. Legal certainty and regulatory clarity make it possible to plan projects with a broader scope, without fear of changes in interpretation that could jeopardize the associated tax benefits.
At Elzaburu, we closely monitor regulatory developments regarding tax incentives for R&D&I in order to provide our clients with up-to-date, thorough advice tailored to their needs, helping them make the most of the opportunities offered by the current tax framework.
David Puentes, Head of Innovation Financing at Elzaburu.