The R&D Law gives access to the benefit through two routes: a project (“intramural”) or a contract (“extramural”). Choosing the right one simplifies the application and reduces risk.
The two modes
Project (intramural). The company carries out the R&D with its own capabilities, and can also hire third parties: universities, registered or unregistered centres, or other companies. It was added in 2012 by Law 20,570. See From 2008 to today.
Contract (extramural). The company outsources 100% of the R&D to a Research Centre registered with Corfo. This was the original mode under the 2008 law.
Comparison
| Project | Contract | |
|---|---|---|
| Who carries it out | The company (and any third parties it hires) | A centre registered with Corfo |
| Own capabilities required | Yes: staff with R&D experience and relevant infrastructure | No: the centre provides them |
| Where it’s done | At least 50% of spending in Chile | The centre can subcontract up to 50% of the contract |
| What you submit | Technical design, budget, capabilities, accounting system | The signed contract with the centre and legal documents |
| Minimum amount | Over 100 UTM per company | Each company commits to pay at least 100 UTM |
| Type | Individual or joint | Individual or joint |
When a project makes sense
- You have your own technical team (engineers, scientists, developers) to do the work.
- You want to keep the knowledge in-house.
- The R&D is closely tied to your processes or products and hard to outsource.
The trade-off is that you must prove your capabilities to Corfo. See How to prove your R&D team’s capabilities.
When a contract makes sense
- You don’t have your own R&D team or can’t prove the required experience.
- The problem needs specialized capabilities (labs, equipment, researchers) a centre already has.
- You prefer a simpler client-supplier relationship at an agreed price.
A few points to keep in mind:
- The centre must be on Corfo’s Registry; being a university isn’t enough.
- The contract must be in writing, cover R&D activities, be consistent with the centre’s capabilities and be at a market price.
- Corfo has no standard contract template: it’s an agreement between private parties.
- The law doesn’t prevent contracting with a related entity, according to Corfo’s FAQ.
Can you combine them?
In an intramural project you can subcontract part of the work to universities or centres, registered or not. That way you combine your team with outside capabilities without switching to the contract mode.
Our recommendation
If you have a technical team and the knowledge is strategic, a project is usually the best option. If you’re new to R&D or the problem needs capabilities you don’t have, a contract with a registered centre may be the fastest route.
This article is for information only and is not tax advice. Sources: Law 20,241, Certification Regulation (Supreme Decree 102/2012) and Corfo’s FAQ.