Deductions for incentives and stimuli for business investment in economic activities in direct estimation
Regulations: Articles 68.2 and 69.2 Law Personal Income Tax
Taxpayers who carry out economic activities in direct estimation may apply the incentives and stimuli for business investment established or established in the Corporate Tax regulations with equal percentages and deduction limits, with two exceptions:
- The provisions of article of the Corporate Tax Law, which establishes the possibility of applying the deduction for research and development activities technological innovation without be subject to the joint limit of the full fee and may request, where appropriate, its payment, provided that certain requirements are met.
- Nor does the provisions of article 39.3 of the Corporate Tax Law apply to taxpayers of Personal Income Tax , which allows them to request, in the case of insufficient quota, the advance payment of the deduction for investment in foreign production of feature films or audiovisual works.
In addition to the deductions established in the Corporate Tax Law, with the exceptions indicated above, taxpayers of Personal Income Tax whose activities meet the requirements to be considered small entities may deduct the income net of economic activities of the tax period that are invested in new elements of tangible fixed assets or real estate investments assigned to economic activities in the terms discussed below.
Consequently, in the current fiscal year 2020, the deductions for incentives and stimuli for business investment that taxpayers who own economic activities can apply in the direct estimation method, in any of its two modalities, normal or simplified, can be structured as follows categories or regimes:
- General regime and special regimes of deductions for incentives and stimuli for business investment of the Corporate Tax Law
- Deduction for investment in new elements of tangible assets or real estate investments used for economic activities
- Special regime for business investments in the Canary Islands