Skip to main content
Renta 2021 Practical Handbook

Deductions from the full amount payable

Deductions for incentives 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 Income Tax Law

  • Programmes to support events of exceptional public interest.New deductions are included in the business field linked to events of exceptional public interest approved in Law 11/2020, of 30 December, on the General State Budget for 2021 (BOE of 31 December).

  • Deductions for incentives for corporate investment under the Company Tax Act

    The deductions in Article 36 of the LIS are amended to include the following new features:

    1. In general:

      The thirty-first final provision Two of Law 11/2020, of 30 December, on the General State Budget for 2021 (BOE of 31 December), amended Article 39 of the LIS to allow, from 1 January 2021, deductions for investments in Spanish film productions and audiovisual series (Article 36.1 LIS) and for the production of certain live performances of performing arts and music (Article 36.3 LIS) to be applied, in addition to the taxpayers who carry out the productions (producers), taxpayers, businessmen or professionals who participate in financing them (investors), when the latter contribute amounts in financing to cover all or part of the costs of the production xml-ph-00Such contributions may be made at any stage of production until the certificate of nationality is obtained.

      In order for the investor to benefit from this deduction, it is necessary for the investor to sign a financing contract with the producer and for both to notify the tax authorities of this circumstance prior to the end of the tax period in which the deduction is generated, providing both the financing contract signed and the certifications of compliance with the requirements of article 36.1 or 36.3 of the LIS for the application of the deduction.

    2. Joint limits

      The thirty-first final provision.Two of Law 11/2020, of 30 December, on the General State Budget for 2021 (BOE of 31 December), amended Article 39.1 of the LIS to establish that the increased limit of 50% applies not only to the amount of the deductions provided for in Article 35 (deductions for research and development and technological innovation activities) but also to the amount of those of Article 36 of the LIS (deductions for investments in film productions, audiovisual series and live performances of performing and musical arts).

    3. Deduction for foreign film productions in Spain (art. 36.2 LIS)

      Article 1.Three of Law 11/2021, of 9 July, on measures to prevent and combat tax fraud (BOE of 10 July) has amended Article 36.2 of the LIS to introduce the requirements to be met by producers who are responsible for the execution of foreign productions of feature films or audiovisual works that allow the production of a physical support prior to their industrial serialised production in order to be able to apply this deduction.

2.Special regime for business investment in the Canary Islands

The first final provision of Law 14/2021, of 11 October (BOE of 12 October), modified the wording of the fourteenth additional provision of Law 19/1994, of 6 July, amending the Economic and Fiscal Regime of the Canary Islands, to establish that the amount of all the deductions of article 36 of the LIS may not exceed the result of increasing by 80% the maximum amount referred to in said article when it concerns productions or expenses carried out in the Canary Islands, given that the fourteenth additional provision of Law 19/1991, first paragraph, with regard to 36.1 of the LIS refers to "increasing by 80% the maximum amount referred to in said article when it concerns productions carried out in the Canary Islands".

Como consecuencia de lo anterior:

  • The amount of the deduction under Article 36.1 of the LIS may not exceed 18 million euros in the case of productions carried out in the Canary Islands.

  • The amount of the deduction under Article 36.2 of the LIS may not exceed 18 million euros in the case of expenses incurred in the Canary Islands.

  • The amount of the deduction under Article 36.3 of the LIS may not exceed 900,000 euros per production.

Deductions for donations and other contributions

  • Entities benefiting from patronage

    The second final provision of Royal Decree-Law 17/2020, of 5 May, approving measures to support the cultural sector and tax measures to address the economic and social impact of COVID-2019 (in turn amended by Law 14/2021, of 11 October) introduces, with effect from 1 January 2021, a new wording of Article 2 of Law 49/2002, which lists the entities benefiting from patronage.

  • Donations, donations and contributions to priority patronage activities

    The sixty-sixth additional provision of Law 11/2020, of 30 December, on the General State Budget for 2021 (BOE of 31 December) establishes for 2021 what are considered priority patronage activities and raises by five percentage points the percentages and limits of the deduction for donations in Article 19 of the aforementioned Law 49/2002, of 23 December, in relation to these activities.

Deduction for housing energy efficiency improvement works:

As a novelty for 2021 and with effect from 6 October, Article 1 of Royal Decree-Law 19/2021, of 5 October, on urgent measures to boost building renovation activity in the context of the Recovery, Transformation and Resilience Plan (BOE of 6 October), introduced a new fiftieth additional provision in the Law of IRPF, which regulates the following deductions for works to improve the energy efficiency of dwellings.

  • Deduction for improvement works that reduce heating and cooling demand.

  • Deduction for improvement works that reduce the consumption of non-renewable primary energy.

  • Deduction for energy rehabilitation works in buildings of predominantly residential use.

The amount of these deductions is deducted from the state tax liability.