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In brief

The Federal Tax Authority (FTA) modified some regulations of the Regime for the Promotion of the Knowledge Economy (“Regime“). These regulations relate to, among others, the procedure of registration in the registry of beneficiaries of the Regime; the procedure for the use, consultation and imputation of the tax credit bonds; the information that the beneficiaries must provide on social security matters; and the annual revalidation of benefits.

In more detail

On 22 March 2021, Resolution No. 4949/2021 (“Resolution“) was published in the Official Gazette, through which the FTA modified the following regulations regarding the Regime:

Registration in the Registry

Registration in the National Registry of Beneficiaries of the Regime (“Registry“) will be carried out, in the first instance, through the service called “Regime for the Promotion of the Knowledge Economy – Application for Registration / Annual Revalidation,” available on the FTA website.

In addition to completing the registration data, the FTA will be authorized to send the necessary information to the enforcement authority for purposes of issuing tax credit bonds, if applicable.

The FTA will verify through systemic controls if the interested party is in compliance with its tax and social security obligations.

Use, consultation and allocation of tax credit bonds

The amounts of the tax credit bonds resulting from the information provided by the enforcement authority may be applied  ̶  as a balance of the affidavit and advances  ̶  to the cancellation of the tax obligations arising from the value added tax, income tax and other national taxes.

For purposes of consulting or allocating the tax bonds, taxpayers and/or responsible persons must long onto “Administration of Tax Incentives and Credits,” available on the FTA website.

Social security information

The beneficiaries of the Regime must declare the payroll of employees by using the application “Calculation System of Social Security Obligations – SICOSS” or in the “Online Declaration” system on the FTA website.

Annual revalidation

In order to annually certify compliance with the requirement regarding the maintenance or increase of the payroll of employees affected by the promoted activities, the beneficiaries of the Regime must complete and send Form No. 1278 through the service called “Regime for the Promotion of the Knowledge Economy – Application for Registration / Annual Revalidation” on the FTA website. The filing must be made within 30 days prior to one year of the date of its registration in the Registry and up to 30 days after the same date.

Entrance into force

The Resolution will enter into force on 26 March 2021.

Click here to access the Spanish version.