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Practical Manual of Companies 2020.

Deduction amount

For tax periods beginning on or after January 1, 2015, in order to mitigate the effects of the reduction in tax rates in the update of balance sheets for fiscal year 2012, section 2 of the transitional provision Thirty-seventh of LIS established a new deduction on the full amount for taxpayers who pay taxes at the general corporate tax rate.

Thus, according to the provisions of the aforementioned provision, taxpayers who pay taxes at the general tax rate provided for in article 29.1 of the LIS who have taken advantage of the balance sheet update provided for in article 9 of Law 16/2012, of 27 of December, by which various tax measures are adopted aimed at consolidating public finances and promoting economic activity, will be entitled to a deduction in the full quota of 5 percent (2 percent for tax periods beginning in 2015) of the amounts included in the tax base of the tax period derived from the amortization corresponding to the net increase in value resulting from that update.

Keep in mind:

This deduction will be applied subsequently to the other deductions and bonuses that result from the application of the Corporate Tax, so the joint limit does not apply to them.

Amounts not deducted due to insufficient full tax may be deducted in subsequent tax periods, without time limitation .