The Government has introduced amendments to SIFIDE II for the 2026 tax period. The key changes are as follows:
- Extension of direct SIFIDE II until 31 December 2026. Companies have until 31 May 2027 to submit applications for expenditure incurred during this tax period.
- End of indirect SIFIDE II (via investment funds). It will no longer be possible to obtain tax relief through subscription to SIFIDE Investment Funds.
- Grandfathering of capital already invested in SIFIDE Funds by 31 December 2025. Contributions made by 31 December 2025, in SIFIDE Investment Funds retain their associated tax relief, and the investment realisation period has been extended from 3 to 5 years. Additionally, up to 20% of contributions already made may now be applied to productive innovation complementary to R&D.
The continuation of the SIFIDE II regime beyond 2026 will depend on the conclusions of the working group established for this purpose.
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[Photograph by Jakub Żerdzicki, available at unsplash.com]