Unification of the DGT’s criteria for applying R&D&I deductions

On 17 July 2025, the Central Economic-Administrative Court (TEAC) issued a ruling that unified the criteria for applying R&D&I deductions. This resolved the controversial issue of whether an R&D&I deduction generated in a given financial year could be applied in subsequent years, even if it had not been included in the self-assessment for the year in which it was generated.

Background and change in the DGT’s doctrine

Until 24 June 2022, the Directorate-General for Taxation (DGT) interpreted in two binding consultations that R&D&I deductions could be applied in subsequent tax periods.

However, on 24 June 2022, the DGT issued two binding consultations — V1510-22 and V1511-22 — modifying its previous interpretation. From that moment on, it was established that the deduction must be applied in the self-assessment for the financial year in which it is generated, or the taxpayer must request rectification of the self-assessment within the legal deadline.

TEAC ruling and unification of criteria

This change in the DGT’s criteria created legal uncertainty for taxpayers, prompting the TEAC to unify its criteria in a ruling issued on 17 July 2025.

The Court concluded that the new doctrine established by the DGT was correct, and that taxpayers must apply the deduction in the financial year in which it was generated, or apply for a rectification of the corresponding self-assessment within the legally established period. However, taxpayers who submitted self-assessments prior to 24 June 2022, in accordance with the administrative doctrine in force at that time, may include R&D&I deductions in subsequent financial years.

Conclusion

The TEAC ruling provides an important element of legal certainty by definitively clarifying how and when the R&D&I deduction should be applied. However, it also limits taxpayers’ flexibility in tax planning for future financial years:

• -From June 2022 onwards, companies must necessarily include the deduction in the financial year in which it is generated or apply it by means of a timely correction.
• -Only self-assessments submitted prior to that date may carry the deduction forward to subsequent periods.