Learn about the alternatives and advantages of the Tax Recovery Incentive (IFR) that you can enjoy.



It affects the IRC and must be requested in the calculation of the same.

Who can benefit?

Taxable persons of the IRC who exercise as their main purpose an activity of a commercial, industrial or agricultural nature.

Conditions of access

Taxable persons of IRC resident in national territory, as well as non-resident taxable persons with a fixed establishment in this territory, who cumulatively meet the following conditions:

  • Have organized accounting, in accordance with the accounting standardization and other legal provisions in force for the respective sector of activity;
  • Taxable profit determined by direct methods;
  • Tax situation regularized;
  • Employment contracts don't cease for three years, counted from the first day of the seventh month of the tax period in which the eligible investment expenses are incurred, under the arrangements for collective redundancy for termination of employment;
  • Don't distribute profits for three years from the first day of the seventh month of the tax period in which the eligible investment expenses are incurred.
  • Eligible investments made only from from 1 July to 31 December 2022.

Tax Incentive to Recovery – IFR

This incentive focuses on the IRC:

  • Deduction from the collection of IRC from the amount of investment expenses in assets allocated to the operation of the company, not exceeding the maximum amount of € 5,000,000, per taxable person:
    • a) 10% of the eligible expenditure incurred in the tax period up to the amount corresponding to the simple arithmetic average of the eligible investment expenditure of the three previous tax periods;
    • b) 25% of the eligible expenditure incurred in the tax period in the part exceeding the average;
  • The tax deduction is made in the IRC settlement of the tax period in which the relevant applications are made, up to the competition of 70% of the collection;
  • If the deduction doesn't occur in full due to insufficient collection, companies may, under the same conditions, deduct the remainder in the 5 subsequent tax periods.

Eligible Expenditure

Tangible assets, acquired in a new state and coming into operation or use by the end of the tax period beginning on or after 1 January 2022, which excludes:

  • Furniture and articles of comfort or decoration, except when assigned to the productive or administrative activity;
  • Construction, acquisition, repair and expansion of any buildings, except when assigned to productive or administrative activities.

Intangible Assets, subject to loss, which includes expenses with development projects and expenses with elements of industrial property, such as patents, trademarks, permits, production processes, models or other assimilated rights, provided that the following requirements are cumulatively met:

  • are subject to amortization or depreciation for tax purposes;
  • Are not acquired from entities with which there are special relationships pursuant to paragraph 4 of article 63 of the IRC Code.

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