The Research and Development (R&D) Law aims to contribute to improving the competitive capacity of Chilean companies, by establishing a tax incentive for investment in R&D, allowing them to reduce the first category tax to 52.55 % of resources allocated to Research and Development (R&D) activities.

R&D is understood as those activities that seek to generate new technological knowledge (Research) or the application of existing research knowledge to improve the processes or products of a company (Development).

The Law is flexible, in the sense that R&D expenses can be made by the company itself or by hiring third parties. In addition, it is aimed at companies of all sizes, sectors and seniority.

Since the Law came out in 2012, more than 400 companies have applied for the R&D Law in order to subsidize their innovation activities.

In order to access the R&D Law, it is necessary to complete an online application. There, CORFO will verify that the activities budget is in accordance with the definition of R&D activities and that the costs are consistent with market conditions.