Blog›Corfo Certification ›After certification: changes, audits and closing your R&D project

Getting the Corfo certificate is a milestone, not the finish line. While the project runs and when it closes, the company has obligations that, if missed, can cost it the benefit.

1. Changes: always notify

Projects change: an experiment fails, the team turns over, the budget is adjusted. According to Corfo, it’s the taxpayer’s responsibility to report every change in amounts, timelines, team or other aspects.

Corfo evaluates the changes and decides whether to:

• Re-certify the project under the new conditions, or
• Revoke the certification, if the changes alter the conditions under which it was certified.

Some recommendations:

• You can consult Corfo in advance before making a significant change.
• Increases in amount may trigger an additional fee.
• An unreported change can be more serious than the change itself.

2. Audits: Corfo can ask at any time

Auditing the technical and financial execution is Corfo’s exclusive power. It can request information periodically, and the company has 30 calendar days to respond, extendable by another 30.

What is usually checked:

• That activities are being carried out as certified.
• That expenses belong to the project and are documented.
• That staff time allocation as declared is real.

The best preparation is separate project accounts and a technical log from day one. See How to document technical uncertainty.

3. Closing the project

At the end, Corfo asks for final technical and financial documentation. It may also hold a meeting and visit the facilities, and then formally closes the project or contract.

4. The SII checks too

The SII can challenge expenses that don’t belong to the certified project. If challenged expenses amount to 20% or more of the project total, Corfo can revoke the certification.

5. Revocation: causes and consequences

Corfo can revoke certification by reasoned resolution if:

• The company breaches the certified terms, or
• It doesn’t provide the information requested in an audit.

The revocation is notified to the SII within 20 days, and the company must amend its tax returns from the date of the breach, paying the difference with the applicable inflation adjustments, interest and surcharges. See Amending tax returns.

6. Confidentiality

Corfo keeps a public list of applicants using the law, with amounts and mode. But the project’s technical and budget content is confidential: Corfo has a duty of confidentiality over that information.

Execution checklist

• A dedicated cost centre for the project.
• Monthly records of staff time allocation.
• An up-to-date technical log.
• Invoices and proof of payment filed by budget line.
• One person responsible for answering Corfo on time.
• Every significant change reported before it’s made.

This article is for information only and is not tax advice. Sources: Law 20,241, Certification Regulation (Supreme Decree 102/2012), Corfo Exempt Resolution No. 1,323/2009 and Corfo’s FAQ.