Article 39.1 LIS (Joint limit)

Regulations: Art. 69.2 Law PIT and 39.1 and 7. LIS

The deduction limits provided for in article 39.1 of the LIS are applied in the PIT on the quota resulting from reducing the sum of the full, state and regional quotas (boxes [0545] and [0546]of the declaration), in the total amount of the deductions for investment in habitual residence (in the case of taxpayers to whom the transitional regime of this deduction is applicable), for investment in newly or recently created companies, provided for in article 68.1 of the Law of PIT, and for actions for the protection and dissemination of the Spanish Historical Heritage and the World Heritage (∑ boxes [0547] and [0548]; boxes [0549]; [0550] and [0551], respectively).

In relation to these limits, article 39.1 of the LIS establishes that the amount of the deductions to encourage the performance of certain activities (excluding the deduction for expenses of execution of a foreign production of feature films or audiovisual works referred to in article 36.2 of the LIS which is not subject to these limits), applied in the tax period, may not jointly exceed 25 percent of the quota defined above.

However, this limit is raised 50 percent when the amount of the deductions provided for in the Articles 35 (deductions for research and development activities and technological innovation) and 36.1 and 36.3 of the LIS (deductions for investments in film productions, Spanish audiovisual series and live performing arts and musical shows), corresponding to expenses and investments made in the tax period itself, exceeds 10 percent of the previously defined quota (that is, the total full quota of the IRPF, reduced by the deductions for protection and dissemination of the Spanish Historical Heritage and the World Heritage and for investments in main residence and in newly or recently created companies).

Note: The amount of the deduction applied by the taxpayer participating in the financing (financier) must be taken into account for the purposes of applying the joint limit of 25%. However, this limit will be raised to 50% when the amount of the deduction provided for in sections 1 and 3 of article 36 of the LIS, which corresponds to the taxpayer who participates in the financing, is equal to or greater than 25% of the quota referred to at the beginning of this section. [(∑ boxes [0545] and [0546] ) - (∑ boxes [0547] and [0548] ; boxes [0549] ;  [0550] and [0551] )]. See articles 39.7 of the LIS and 69 of the Law of PIT.

When there are outstanding balances from deductions from previous years, the applicable limit (25 percent or 50 percent) It will be applied jointly to the deductions for the 2025 fiscal year and to outstanding balances from previous fiscal years..

Note: for the purposes of calculating this joint limit (25% or 50%) the deduction for foreign film productions in Spain provided for in article 36.2 of the LIS will not be computed).