Law 13/2026 authorizes the government to extend SIFIDE II and introduce major changes to it.
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SubscribeLaw 13/2026 of April 16 authorizes the government to amend the Tax Investment Code (Código Fiscal do Investimento). Specifically, it extends the incentive regime for research and development (“SIFIDE II”) through the 2026 tax year and authorizes major changes to this regime, most of which the government had already announced.
Under the legislative authorization, the government must now legislate on the following aspects of the regime:
- Extension of SIFIDE II through the 2026 tax year.
- End of indirect access to SIFIDE II through investment funds: new deductions based on future subscriptions of SIFIDE fund’s participation units will no longer be permitted.
- Continuation of the National Innovation Agency’s (Agência Nacional de Inovação, or ANI) issuance of eligibility clearance for companies held by collective investment undertakings. Also, the regime will continue to require that companies actually carry out R&D investments. Those requirements will not apply to spin-offs created through technology-transfer processes developed by collaborative laboratories.
- Under the Special Taxation Regime for Corporate Groups (RETGS), the incremental rate, limits and increases will now apply to the increase in the aggregate expenses of the companies included in the group.
- Extension from three to five years of the deadline for (i) investment funds to invest in eligible companies, and (ii) companies to carry out the corresponding investments in R&D activities.
- Broader exclusion of the benefit to R&D expenses financed—directly or indirectly—by public, national or international funding.
- Expansion of eligible expenses to include “productive innovation” costs that arise directly from, and are complementary to, previously conducted R&D activities. This expansion will be subject to certain conditions, limits and exclusions to be set out in legislation to be approved by the government.
- For contributions made from January 1, 2021, to December 31, 2023, the 80% minimum threshold will remain in place for the purposes of channeling and investing capital by SIFIDE collective investment undertakings and their subsidiaries, within the time limits applicable to that period under the law.
- Clarification that SIFIDE II fund implementation is limited to investments in R&D-performing companies. Subscribing to participation units in investment funds will not be treated as an implementation of an investment.
- Stricter transparency obligations, including an annual report with key indicators such as financial execution, companies’ R&D intensity, sector productivity, participation in European programs, and trends in higher value-added exports.
- Clarification of certified accountants’ liability, confirming that it is limited to their own professional responsibilities and does not cover classifying expenses as R&D or productive innovation.
Next steps
The government has 180 days to approve the implementing decree-law under the terms set out in the legislative authorization. The subsequent regulatory and administrative implementation will be decisive for the revised regime’s practical application.
For taxpayers, this is a timely opportunity to reassess their R&D pipelines and begin planning investments under the regime to be approved.
In the meantime, Cuatrecasas will continue to monitor legislative developments closely.
For further information, please email our Knowledge and Innovation Group or your usual contact at Cuatrecasas.
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