Deductions from the full fee
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
Support programs for 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 December 30, on General State Budgets for the year 2021 ( BOE of 31).
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:
The thirty-first Final Provision Two of Law 11/2020, of December 30, on General State Budgets for the year 2021 ( BOE of 31), modified article 39 of the LIS to allow, from January 1, 2021, deductions for investments in Spanish film productions and audiovisual series to be applied (art. 36.1 LIS ) and for the production of certain live performing arts and musical shows (art. 36.3 LIS ), in addition to the taxpayers who carry out the productions (producers), the taxpayers, businessmen or professionals that participate in the financing of these (investors), when the latter contribute amounts as financing, to cover all or part of the production costs without acquiring intellectual property rights or of another nature regarding the results thereof, whose property must in all cases belong to the producer. These contributions can be made at any stage of production until the nationality certificate is obtained.
In order for the investor to be a beneficiary of this deduction, it is necessary that he sign a financing contract with the producer and that both inform the Tax Administration of this circumstance prior to the end of the tax period in which the deduction is generated, providing both the contract of financing signed as the certifications of compliance with the requirements demanded in article 36.1 or 36.3 of the LIS for the application of the deduction.
The thirty-first Final Provision. Two of Law 11/2020, of December 30, on the General State Budgets for the year 2021 ( BOE of 31), modified article 39.1 of the LIS to establish that the increased limit of 50 percent is applied taking into account not only the amount of the deductions provided for in article 35 (deductions for research and development and technological innovation activities) but also the amount of those in the article 36 of the LIS (deductions for investments in film productions, audiovisual series and live performances of performing arts and music).
Deduction for foreign film productions in Spain (art. 36.2 LIS )
Article 1.Three of Law 11/2021, of July 9, on measures to prevent and combat tax fraud ( BOE of 10) has modified article 36.2 of the LIS to introduce the requirements that must be met by producers who are responsible for the execution of foreign productions of feature films or audiovisual works that allow the preparation of a physical support prior to their serial industrial production in order to apply this deduction.
2. Special regime for business investments in the Canary Islands
The first Final Provision of Law 14/2021, of October 11 ( BOE of 12), modified the wording of the fourteenth Additional Provision of Law 19/1994, of July 6 , modifying 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 be higher than the result of increasing by 80 percent the maximum amount referred to in said article when it comes to 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 percent the maximum amount referred to in said article when it comes to productions made in the Canary Islands."
As a consequence of the above:
The amount of the deduction in article 36.1 of the LIS may not exceed 18 million euros in the case of productions made in the Canary Islands.
The amount of the deduction in 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 in 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 May 5, which approves measures to support the cultural and tax sector to address the economic and social impact of COVID-2019 (modified in turn by Law 14/2021, of October 11) introduces, with effect from January 1, 2021, a new wording of article 2 of Law 49/2002 that lists the Entities benefiting from patronage.
Donations, donations and contributions for priority patronage activities
The sixty-sixth Additional Provision of Law 11/2020, of December 30, on the General State Budgets for the year 2021 ( BOE of 31) establishes for 2021 what are considered priority activities of patronage and raises by five percentage points the percentages and limits of the deduction for donations of article 19 of the aforementioned Law 49/2002, of December 23, in relation to these activities.
Deduction for works to improve the energy efficiency of homes
As a novelty for 2021 and with effect from October 6, article 1 of Royal Decree-Law 19/2021, of October 5, on urgent measures to promote building rehabilitation activity in the context of the Recovery, Transformation and Resilience ( BOE of 6), introduced a new fiftieth Additional Provision in the Personal Income Tax Law , which regulates the following deductions for works to improve the energy efficiency of homes.
Deduction for improvement works that reduce the demand for heating and cooling.
Deduction for improvement works that reduce the consumption of non-renewable primary energy.
Deduction for energy rehabilitation works of buildings with predominantly residential use.
The amount of these deductions falls on the full state quota.