2. General deduction regime
The business investments that in fiscal year 2021 determine the right to deduct for this concept are contained in articles 35, 36 and 38 of Law 27/2014, of November 27, on Tax on Companies (hereinafter LIS).
Deduction for job creation of article 37 of the LIS : with effects for tax periods beginning on January 1, 2019, the sole repealing provision of Royal Decree-Law 28/2018, of December 28, for the revaluation of public pensions and other urgent measures in social and labor matters and employment, repealed article 4 of Law 3/2012, of July 6, on Urgent Measures for the Reform of the Labor Market, which established the possibility of celebrating employment contracts for an indefinite period to support entrepreneurs.
However, the sixth transitional provision of the aforementioned Royal Decree-Law 28/2018 maintained the validity of those contracts that had been concluded prior to said date (January 1, 2019) under the regulations in force at the time of their conclusion. and those of their corresponding incentives.
As a consequence of the above, the deduction for job creation in article 37 of the LIS continued to apply to indefinite employment contracts to support entrepreneurs entered into before January 1, 2019. Said deduction It had to be carried out in the full installment of the tax period corresponding to the end of the one-year trial period required in the corresponding type of contract. Therefore, for contracts validly signed in 2018 whose trial period ended in one year, the deduction could be applied to the full installment for fiscal year 2019.
However, as of fiscal year 2020, the right to apply this deduction is not generated, as these contracts have been repealed since January 1, 2019 .
Furthermore, in accordance with the provisions of section 5 of the twenty-fourth transitional provision of the LIS , the investment deduction of article 37 of the consolidated text is applicable in 2021 of the Corporate Tax Law, approved by Royal Legislative Decree 4/2004, in those cases in which the investment in assets affected by economic activities is carried out in accordance with a special investment plan approved by the Tax administration at the proposal of the taxpayer and said plan allows the net returns from economic activities for the 2014 tax period to be invested in new elements of tangible fixed assets or real estate investments in fiscal year 2021.
Below is the table showing each of these deduction modalities, their deduction percentage and the joint limit, as well as a study and specific comment on each of them:
- General deduction regime table (Law 27/2014, of November 27, on Corporate Tax)
- Article 35 LIS "Deduction for research and development and technological innovation activities"
- Article 36 LIS "Deduction for investments in cinematographic productions, audiovisual series and live performances of performing and musical arts"
- Deduction for investment of profits (previous art. 37 TRLIS)
- Article 38 LIS "Deduction for job creation for workers with disabilities"
- Article 39.1 LIS (Joint limit)