Blog›Corfo Certification ›Joint R&D projects: applying together with other companies

R&D is rarely done alone. A supplier and its customer, two companies in the same industry or a large company and a startup may share a technical problem. The R&D Law lets them tackle it together through a joint project or contract (proyecto asociativo).

What a joint project is

It’s an R&D project or contract involving two or more taxpayers, who fund it together and apply to Corfo for certification jointly. Each company claims the tax benefit on its own contribution.

It works in both modes: project or contract.

Specific requirements

• Minimum contribution per company: according to Corfo’s FAQ, each taxpayer’s contribution can’t be less than 100 UTM.
• Breakdown of contributions: the project design must state how much each company contributes.
• Common representative: the companies must appoint, by mandate or power of attorney, a representative to act as the counterpart before Corfo.
• Individual tax requirements: each company that wants to use the benefit must be a First Category taxpayer on actual income with full accounting. See Full accounting and actual income.

The certification fee can be split freely among the participating companies.

When teaming up makes sense

• Shared problems. Several companies in the same industry face the same technical challenge and none can justify the investment alone.
• Complementary capabilities. One company brings the technical know-how and the other access to data, facilities or the real-world problem.
• Value chain. A supplier develops a solution with its customer.
• Loss-making companies. If a young company can’t use the credit yet, a partner that owes tax can use it on its own contribution. See Unused R&D credit.

What to agree on first

A joint project is also a business relationship. Before applying, put in writing:

1. Each company’s contributions and timeline.
2. Ownership of results: who owns the intellectual property and how it’s exploited. See Intellectual property from R&D.
3. Confidentiality of shared information.
4. What happens if a company drops out or doesn’t make its contribution.
5. Who the representative before Corfo is and how decisions are made.

Can you work with related companies?

According to Corfo, the law sets no restrictions on the relationship between the taxpayer and the entity it hires to carry out R&D. Even so, prices must reflect market conditions, and Corfo checks this.

Coordination during the project

Changes in amounts, timelines or the team must be reported to Corfo. In a joint project, one company’s change affects everyone, so coordination between partners is key. See After certification.

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.