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

Regulations: Articles 68.2 and 69.2 Law PIT

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:

It does not apply to taxpayers of the PIT the provisions of article 39.2 of the Corporate Income Tax Law, which establishes the possibility of applying the deduction for research and development and technological innovation activities of sections 1 and 2 of article 35 of the LIS, without being subject to the overall limit of the full quota and being able to request, where appropriate, its payment, provided that certain requirements are met.
It is also not applicable to taxpayers of the PIT the provisions of article 39.3 of the Corporate Income Tax Law which allows, in relation to the deduction for foreign cinematographic productions in Spain provided for in section 2 of article 36 of the LIS, request, in the event 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 by the LIS, with the exceptions indicated above, taxpayers of the PIT whose activities meet the requirements to be considered small-sized 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 2021, 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: