8.3.2 Regulation of deduction for investments in new tangible fixed assets

The first section of the twenty-fourth transitional provision of the LIS establishes that deductions for investments in new tangible fixed assets generated in accordance with article 26 of Law 61/1978, of 27 December, of the Corporate Tax, with respect to which the taxpayer had chosen to apply them in the tax periods in which the payments are made in accordance with the provisions of article 218.3 of the Corporate Tax Regulation, approved by RD 2631/1982, of October 15, will continue to apply in the settlements of the tax periods in which the aforementioned payments are made, under the conditions and requirements provided for in the aforementioned standard.

The deductions referred to in the previous paragraph will be deducted respecting the limit on liquid quota provided for in the aforementioned Law and in the corresponding General State Budget Laws.

For these purposes, liquid quota will be understood as the result of reducing the full quota in the deductions and bonuses provided for in Chapters II and III of Title VI of the LIS.

Deductions from different tax modalities or periods of article 26 of Law 61/1978, of December 27, may not exceed a joint limit of 35 percent of the liquid quota.

The deductions referred to in the previous paragraphs will be made once the deductions and bonuses established in Chapters II and III of Title VI of the LIS have been made and, then, the deductions established in Chapter IV of Title VI, the limit of which is will be computed independently of that established in the previous paragraph.