Option for the exclusion and payment of the limit

In the case of entities to which the general tax rate provided for in section 1 or section 6 of article 29 of the LIS applies, the deductions for research and development and technological innovation activities referred to in sections 1 and 2 of article 35 of this Law may, optionally, be excluded from the limit established in the last paragraph of article 39.1 of the LIS, and applied with a discount of 20 percent of its amount, under the terms established in this section.

In the event of insufficient quota , its payment may be requested from the Tax Authority through the declaration of this Tax, once the period specified in letter a) of the following section "Requirements " has ended. This payment will be governed by the provisions of article 31 of Law 58/2003, of December 17, General Tax Law, and its implementing regulations, without, in any case, the accrual of late payment interest referred to in article 31.2 of said Law.

In accordance with the provisions of article 39.2 of the LIS, the amount of the deduction applied or paid:

• may not jointly exceed the amount of 1 million euros per year , in the case of technological innovation activities.

• may not jointly exceed, and for all purposes, 3 million euros annually , in the case of research and development and technological innovation activities.

Both limits will apply to the entire group of companies, in the case of entities that form part of the same group according to the criteria established in article 42 of the Commercial Code, regardless of their residence and the obligation to prepare consolidated annual accounts.