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Practical Income Manual 2023.

Deductions from the full fee

Deduction for investment in companies of new or recent creation

With effect from January 1, 2023, the maximum deduction base is increased from 60,000 to 100,000 euros and the deduction percentage is increased from 30 to 50 percent.

Furthermore, for the application of this deduction to emerging companies, referred to in section 1 of article 3 of Law 28/2022, of December 21, on the promotion of the ecosystem of emerging companies, some of the requirements required are eliminated or expanded.

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

General regime and special regimes of deductions for incentives and stimuli for business investment of the Corporate Tax Law

  • General deduction regime

    Deduction for investments in Spanish film productions and audiovisual series (art. 36.1 LIS ) and deduction for the production of certain live shows (art. 36.3 LIS )

    Law 38/2022, of December 27, for the establishment of temporary levies on energy and credit entities and financial credit establishments and by which the Temporary Solidarity Tax of Great Fortunes is created, and certain tax regulations are modified ( BOE of December 28) has modified in its Final Provision fifth.Two, with effects for tax periods that begin on or after January 1, 2023, sections 1 and 2 of article 36 of the LIS to increase the limits of the deduction for investments in Spanish and foreign film productions and audiovisual series.

    Specifically, the maximum amount of the deduction is raised from 10 to 20 million euros, except in the case of audiovisual series, for which a new limit is established that will be 10 million euros for each episode produced.

    Additionally, the limit established for determining the base of the deduction regulated in section 2 of article 36 of the LIS in relation to the expenses of creative personnel is eliminated.

  • Deduction for business contributions to corporate social security systems (art. 38 ter LIS )

    A new deduction is included in the full quota for 10 percent, linked to business contributions to corporate social security systems allocated in favor of workers with annual gross salaries of less than 27,000 euros.

    However, in the event that the aforementioned gross annual remuneration is equal to or greater than 27,000 euros, the deduction will be applied to the proportional part of the business contributions that correspond to the amount of the gross annual remuneration indicated above. 

    For taxpayers of Personal Income Tax , the third Additional Provision of Royal Decree-Law 13/2022, of July 26, which establishes a new contribution system for self-employed workers or self-employed and the protection for cessation of activity is improved ( BOE of July 27), specified that, with effect from January 1, 2023, self-employed workers with workers at their position may practice this deduction under the terms and conditions provided for in article 68.2 of the Personal Income Tax Law .

  • Special deduction regimes 

    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 31/2022, of December 23, on General State Budgets for the year 2023 ( BOE of December 24).

Special tax regime of the Balearic Islands

With effect for tax periods beginning between January 1, 2023 and December 31, 2028, a special tax regime is introduced for the Balearic Islands, which entitles taxpayers to Personal Income Tax who carry out economic activities in direct estimation of a deduction from the full quota for the net operating income destined for the investment reserve and a bonus corresponding to the income derived from the sale of tangible assets produced in the Balearic Islands by themselves , typical of agricultural, livestock, industrial and fishing activities. Said tax regime includes the following measures:

  • Deduction for contributions to the Reserve for Investments in the Balearic Islands

    The reserve for investments in the Balearic Islands is regulated in terms very similar to the deduction for contributions to the Reserve for Investments in the Canary Islands (provided for in article 27 and in the eleventh Additional Provision Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands), but subject, together with the rest of the aid and tax benefits, to the limits set by the community regulations for aid of " minimis ".

  • Deduction for income derived from the sale of tangible assets produced in the Balearic Islands

    With effect for the tax periods that begin between January 1, 2023 and December 31, 2028, it is established for taxpayers of IRPF who carry out agricultural, livestock, industrial and fishing companies, in the latter case in relation to the catches made in their fishing and aquaculture zone, the possibility of applying a bonus of 10 percent of the full quota corresponding to these yields, as long as they determine the yields by the direct estimation method , have their residence in the Balearic Islands and meet certain requirements. 

    The bonus will be applied to the part of the full quota that proportionally corresponds to the returns derived from the indicated production activities.

These tax benefits (bonus and reserve for investments in the Balearic Islands), together with any other aid received under the regulations on “ minimis ” aid, may not exceed the amounts that, for their respective scope of application, established by the Regulations of the European Union.

Deductions for donations and other contributions

Donations, donations and contributions for priority patronage activities

The fifty-seventh Additional Provision Law 31/2022, of December 23, on General State Budgets for the year 2023 ( BOE of December 24), establishes for 2023 the activities that are considered priority patronage activities and increases by five percentage points the percentages and limits of the deduction for donations of article 19 of Law 49/2002, of December 23, in relation to these activities.

Deduction for habitual and effective residence on the island of La Palma during the 2023 financial year

Article 67 of the General State Budget Law for 2023 adds a fifty-seventh Additional Provision to the Personal Income Tax Law to allow, exclusively in the 2022 and 2023 tax periods, taxpayers with habitual and effective residence on the Island of La Palma can apply the deduction provided for residents of Ceuta and Melilla in article 68.4.1 of this Personal Income Tax Law .

Deduction for works to improve the energy efficiency of homes

The temporal scope of application of the deduction for works to improve the energy efficiency of homes is extended for another year in accordance with the provisions of Royal Decree-Law 18/2022, of October 18, which approves energy efficiency measures. reinforcement of the protection of energy consumers and contribution to the reduction of natural gas consumption in application of the "Plan + security for your energy (+SE)", as well as measures regarding remuneration of personnel serving the public sector and protection of temporary agricultural workers affected by the drought.

Deduction for the acquisition of "plug-in" electric vehicles and fuel cell vehicles and charging points

In order to promote electric mobility and reduce dependence on fossil fuels, article 189 of Royal Decree-Law 5/2023, of June 28 ( BOE of June 29) has modified , with effect from June 30, 2023, the Personal Income Tax Law to establish two new temporary deductions in the full state quota, which will be applicable until December 31, 2024:

  • Deduction for the acquisition of new "plug-in" electric and fuel cell vehicles.

  • Deduction for the installation of battery charging points for said electric vehicles.

The amount of these deductions, like the deduction for works to improve the energy efficiency of homes, falls exclusively on the full state quota.