Law Proposal no. 44/XVII/1.ª, which proposes a revision of the SIFIDE, provides for some changes to the regime, determining the end of SIFIDE via Funds for new contributions, the extension of investment deadlines, new rules for the allocation of funds, and the strengthening of reporting obligations, while maintaining a substantial part of the tax benefit structure.

This proposal determines that SIFIDE II will only remain applicable for tax periods up to 2026. Regarding SIFIDE via Funds, it will no longer be possible to obtain the benefit through new subscriptions made after December 31, 2025. However, the regime applicable to contributions made up to that date will remain in full force, now governed by a set of transitional rules.

One of the most significant changes is the extension of the deadline for investments by SIFIDE Funds, which will increase from three to five years to achieve at least 85% of investments in companies engaged in R&D activities, under penalty of proportional adjustment of the deduction. The five-year deadline for Investee Companies to incur eligible expenses also remains in place, with mandatory proof of the effective allocation of the amounts to R&D.

This proposal also creates a transitional regime. As such, for contributions made until December 31, 2025, up to 20% of the amount received by the Funds may be applied to productive innovation investments directly resulting from and functionally complementary to R&D activities completed in the previous three years. This mechanism is subject to limits per fund (maximum 20% of contributions) and per company (up to €20 million) and cannot be combined with other public support.

Finally, the procedure for prior recognition of the suitability of Investee Companies has been eliminated, with ANI now only carrying out subsequent checks on investments.

For more information on this topic, please do not hesitate to contact the Tax Law Department of Ana Bruno & Associados, Sociedade de Advogados, SP, Lda.