I. Introduction
On 14th June 2014, Royal Decree No. 475/2014 was published in the Official State Gazette. This Royal Decree aims to establish a 40% allowance in employer Social Security contributions for common contingencies for research/investigation staff.
II. Scope of application and exclusion
The workers who are included in the contribution groups 1, 2, 3, and 4 of the Social Security General Regime, and who dedicate their total working-time in the company exclusively to investigation and development and technology innovation activities (hereinafter “I+D+i), shall be entitled to this allowance. The employment contract may be either permanent, for an internship, or for a specific project or service. In this last case, the duration of the labour contract should be not less than 3 months.
The said Royal Decree will not be applicable in the following cases:
a) Employees who allocate only a part of their working-time to carrying out I+D+i activities.
b) Employees who work for companies, which carry out I+D+i projects, and whose work consists of activities other than those established in article 35 of Company Tax Law.
c) Employees who have a contract with the National General Administration and Public Institutions regulated in Law No. 6/1997 of 14th of April.
d) Special Labour Relations defined in article 2 of the Statute of Workers Rights.
e) Personnel contracted by companies or organizations for I+D+i activities, which are explicitly funded or financed with public funds.
III. Requirements
The entities or companies which would be beneficiaries of the allowances should meet the following requirements:
a) Meet the required general conditions for the acquisition and maintaining of the benefits in Social Security contributions: and
b) Not having been excluded from the access to the benefits derived from the application of the employment programs as a result of committing a serious infringement, which has not been time-barred.
IV. Application of the allowance
The beneficiary entities or companies may apply for the allowance automatically in the corresponding contribution documents, without prejudice to the control and inspection by Social Security General Office.
For the proper control on the executed allowances, the entities or companies which apply for allowances in Social Security contributions for ten or more research/investigation staff, for the duration of more than 3 months in a business year, must submit a binding report to the Social Security General Office within a maximum of 6 months as from the end of the fiscal year in which the allowance has been applied. The report must be issued by the General Department of Innovation and Competitiveness of the Ministry of Economy and Competitiveness in relation to the fulfilment of conditions in the aforementioned period regarding investigation staff with exclusive dedication to I+D+i activities.
V. Conclusion
The Royal Decree will enter into effect 3 months after publication in the Official Gazette: 13th of September 2014. Notwithstanding, it will apply retroactively to full time research/investigation registered for Social Security as from 1st of January 2013.
Mika Otomo
Vilá Abogados
For more information, please contact:
26th June 2014
