12/06/2014

R & d law: What are the results of the law?

2014-06-12-sContinuing with our series of articles devoted to the r & d tax incentive Act, We will announce the results that it has had since its implementation in 2008, until June of 2013, including those obtained from your modification in 2012.

According to rates provided by the OECD in developed countries in r & d investment comes to a 2,5% of GDP, While in Chile does not exceed the 0,5% This. On the other hand, according to the latest data available, March of 2011, in Chile, only the 44% of the total investment in research and development (R & d) It was built by companies, While the OECD average came to 65%. Achieve these figures are some of the objectives that have been proposed for the last Chilean Governments, looking at the same time convert to the country in a pole of innovation.

To achieve these goals is that was modified in 2012 the r & d tax incentive Act of 2008, which as explained in the article "Law of r & d: My company can access this benefit?”, It promotes investment in r & d in business, with the aim to improve the competitiveness of these. Since as says Dimitri Corpakis, Head of Sector on Regional Aspects of Research Policy of the Union European, "Knowledge through investment in r & d is a key driver for economic growth and employment […]”. Six years of its implementation and nearly two of its modification it is normal to display questions on the results generated by this law, It is attractive for those companies that perform r & d. Below we provide some figures related to it.

One of the most significant changes of this reform was the increase in the maximum amount of certification, of 5000 UTM to 15000 UTM. And while remains the 35% tax credit, with the reform, the 65% remaining can be considered as an expense necessary to produce income, so finally the benefit can reach almost from the 50%. These modifications added to that with the reform projects to certify may be underway or ready to start have shown positive results.

Since he began to govern the law in 2008 until June of 2013 was a total investment of USD 26,1 million. During the period under the old law ran, i.e. between 2008 and 2011, they accepted the tax incentive to r & d 71 companies with a total of 73 projects certified by around USD 15 million. With the only law reform in 10 months became certified almost the 80% of the certificate during the previous four years, reaching an investment in 33 projects of USD 11,5 million to June of 2013.

The distribution of these amounts certified during the period 2008-2013 is divided in the following way: Fisheries and aquaculture 22,1%, Food 16,1%, Mining 13,9%, Agricultural 11,7% Silvicultural 11,1% Environment 9,2%, Other 15,9%.

Of the total of 145 companies that accepted the benefit up to 2013, the 78,6% corresponded to large companies, the 18,6% medium-sized companies and only the 2,8% to small businesses. Regarding the regions leading certifications are Metropolitan region with 66,46%, Lakes with 17,55% and Bio with 9,18%, together other regions certify the 6,81%.

Reviewing the figures it is possible to appreciate that the reform has given positive results. But, Although the data are encouraging, There are still pending challenges, as increase the certification of projects in regions and strengthening other sectors. These challenges relate, Perhaps, How is appreciated in a previous article, ignorance of what comprises r & d or lack of knowledge of the law and how you can access it. Whereas this last, is possible that entities that are determined to invest in r & d and qualify for the benefit, they have not done so, because they have questions that must be cleared to be able to begin the process. The answers to them are may find in our next article "law r & d": What are the steps to follow to access the benefit?”

 

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