Deductions for incentives and stimuli to business investment in economic activities in direct estimation

Regulations: Articles 68.2 and 69.2 Law IRPF

Taxpayers who carry out economic activities in direct estimation may apply the incentives and stimuli for business investment established or to be established in the Corporate Tax regulations with equal percentages and deduction limits, with two exceptions:

The provisions of article 39.2 of the Corporate Tax Law which the possibility of applying the deduction for research and development and technological innovation activities without being subject to the joint limit of the total quota and being able to request, where appropriate, its payment, provided that certain requirements are met, are not applicable to taxpayers of ##1## IRPF ##1##.
The provisions of article 39.3 of the Corporate Tax Law, which allows, in the event of insufficient quota, the advance payment of a deduction for investment in foreign production of feature films or audiovisual works, are also not applicable to taxpayers of ##1##.

In addition to the deductions established in the Corporate Tax Law, with the exceptions indicated above, taxpayers of IRPF whose activities meet the requirements to be considered small entities may deduct the net income from economic activities of the tax period that are invested in new elements of tangible fixed assets or real estate investments related 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 can be applied by taxpayers who are owners of economic activities in the direct estimation method, in any of its two modalities, normal or simplified, can be structured in the following categories or regimes: