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The timber industry get tax deductions for prototypes, samples and catalogs of defense against

The move has been agreed with the Government within the Plan Industry Support of the Wood and Furniture. These items will then be considered as technological innovation activities in the face of the Income Tax Act.
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The English Confederation of Wood (CONFEMADERA) has agreed with the Government including the prototypes of furniture and wood products, as well as samples and catalogs, as innovation activities technology.

The measure, which will be signed before year end and start to become effective in 2009, will tax deductions for companies facing the Income Tax Act. It aims to stimulate innovation and competitiveness within sectors of the wood and furniture.

Thus, the costs of prototypes, samples and catalogs will be considered "regular or seasonal changes" and referred to as "innovation activities" in Article 35 of Royal Decree 4 / 2004. The basis of the deduction shall consist of the costs relating to concepts such as industrial design and engineering of production processes, which include the design and preparation of plans, drawings and media to define the descriptive elements, technical specifications and performance characteristics needed for manufacturing, testing, installation and use of a product and the design and development of textile samples, prototypes of furniture and wood products, samples and catalogs of such products.

This is part of the Plan of Support for the Timber Industry and the Cabinet, which will shortly be signed by the Ministry of Industry, Tourism and Trade, the Ministry of Labour CONFEMADERA and unions. Subsequently, the Autonomous Communities will join this line of work.

Support Plan aims to make more competitive sectors of the wood and furniture, adapting to new competitive scenario, maintaining the largest possible number of businesses and jobs, and mitigate the consequences of this scenario can accrue to workers and territories.

To achieve these objectives, the plan includes a package of measures seeking to: achieve a more appropriate business size and a closer collaboration between business, production strategy to refocus the more specialized products with higher added value improve the financial and business capitalization, increased investment in R + D + i, increase training and professional qualifications of workers, improve the export capacity of enterprises, and resize the fields of wood and furniture, adjusting their productive capacity and its use with the real size of the market.

To Francesc de Paula Pons, Secretary General of CONFEMADERA: "This is a really important measure for all sectors of the wood and furniture, because it will allow English companies to invest more in R + D + i, which will directly competitive, fundamental to the economic situation we find ourselves. "

Source: clm innovation