Deductions from the full fee
A. Deductions for incentives and stimuli for business investment in economic activities in direct estimation
1. General regime and special regimes of deductions for incentives and stimuli for business investment of the Corporate Tax Law
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New deductions are included in the business field linked to certain events of exceptional public interest approved in the General State Budget Law for the year 2018 that have come into force during the 2020 financial year.
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Deductions for incentives and stimuli for business investment from the Corporate Tax Law
The deductions of article 36 of the LIS are modified to include the following new features:
- Deduction for investments in Spanish film productions (art. 36.1 LIS): Tax incentives related to film production are increased by raising the deduction percentages and the maximum amount of the deduction. In addition, the assumptions in which limits higher than 50 percent of the production cost are set are expanded.
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Deduction for investments in foreign productions of feature films or audiovisual works (article 36.2 LIS): The deduction percentages and the maximum amount of the deduction are also raised, as a measure that favors greater competitiveness of the Spanish film and audiovisual sector in the national and international environment.
In addition, the measures of the European Commission Communication on state aid for cinematographic works and other productions in the audiovisual sector are integrated. In this sense, the production phase is incorporated for the application of the incentive in animation productions and the application of said incentive to the execution in Spain of the part of international productions related to visual effects is maintained, provided that the amount of said deduction does not exceed the amount established in Commission Regulation (EU) 1407/2013, of December 18, 2013, relating to the application of articles 107 and 108 of the Treaty on the Functioning of the European Union to aid minimis .
2. Canary Islands Investment Reserve
Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, is amended to extend by one year the deadlines for materializing the reserve for investments in the Canary Islands endowed with profits obtained in tax periods beginning in the year 2016 and the provision to said reserve related to the anticipated investments made in 2017 and considered as their materialization, due to the serious effects that the pandemic has produced on the realization of the investments and the economic results in the year 2020.
B. Deductions for donations and other contributions
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The second Final Provision of Royal Decree-Law 17/2020, of May 5, which approves measures to support the cultural and tax sector to face the economic and social impact of COVID-2019 (BOE of 6) , has modified, with effect from January 1, 2020, article 19.1 of Law 49/2002, of December 23, on the tax regime for non-profit entities and tax incentives for patronage, to increase by 5 points percentages of the deduction percentages provided for in said article for donations.
Therefore, the scale applicable during the 2020 tax period is as follows:
Deduction base Amount up to Percentage of deduction 150 euros 80 Remaining deduction base 35 Increased rate for repeated donations to the same entity 40 -
Donations for support against Covid-19 made to entities benefiting from patronage, which include, among others, the State, Autonomous Communities and Local Entities, are entitled to the donation deduction in the indicated percentages. These donations will also be affected, in accordance with article 47 of Royal Decree-Law 11/2020, of March 31 (BOE of April 1), to the exclusive financing of expenses derived from the health crisis caused by Covid. -19 and may be used to cover expenses such as health equipment and infrastructure, material, supplies, hiring of personnel, research and any other that may contribute to strengthening response capabilities in the face of said health crisis.