a) Amount and limits of the deduction

Regulations: number 13 of the seventieth Additional Provision. Four Law 31/2022, of December 23, on the General State Budgets for the year 2023

Deduction amount

Taxpayers of Personal Income Tax who carry out economic activities in direct estimation will have the right to a deduction in their full quota for the net operating income that is allocated to the reserve for investments, as long as these come from of economic activities carried out through establishments located in the Balearic Islands.

The amount of this deduction is variable and is determined by applying the average tax rate (sum of the average general and regional tax rates, boxes [ 0534] and [0535 ] of the declaration) to the allocations of the net operating income for the year that is allocated to the reserve for investments in the Balearic Islands.

Deduction limits

The amount of this deduction may not exceed 80 per 100 of the part of the full quota that proportionally corresponds to the amount of net operating income that comes from establishments located in the Balearic Islands , provided that the limits established in the Community Regulation that, in each case, are applicable and that are indicated in the table on the limits of aid to minimis , which are applicable, are not exceeded to the tax benefits of the special tax regime of the Balearic Islands and are included in section 3.

In joint taxation, the maximum limit of the deduction is applied individually to each of the spouses , if both were entitled to the deduction, without, as a result of this application, result in a deduction greater than 80 percent of the full fee .