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Practical Handbook for Companies 2021

From 01-07-2016 to 31-12-2017

Regulation: Article 23 LIS, according to the wording of Law 48/2015, of 29 October.

Amount of the reduction

Income from the assignment of the right to use or exploit patents, designs, plans, secret formulas or procedures, of rights to information relating to industrial, commercial or scientific experiments, shall be entitled to a reduction in the taxable base by the percentage resulting from multiplying the result of the following coefficient by 60 per cent:

  1. In the numerator , expenses incurred by the transferor directly related to the creation of the asset, including those arising from subcontracting with unrelated third parties.These expenses shall be increased by 30 per cent, but in no case may the numerator exceed the amount of the denominator.

  2. At denominator, the expenses incurred by the transferor directly related to the creation of the asset, including those incurred in subcontracting and, if applicable, in acquiring the asset.

In no case shall the aforementioned coefficient include financial expenses, repayments on properties or other expenses not directly related to the creation of the asset.

The above shall also apply in the case of the transfer of the intangible assets referred to therein, where such transfer is between entities that are not related.

Income from the sale of intangible assets

In the case of the transfer of intangible assets, for the purposes of their inclusion in the tax base with the reduction set out in the previous section, regardless of whether or not the asset is recognised in the entity's balance sheet, income shall be understood as the positive difference between the income for the year from the transfer of the right to use or exploit the assets and the amounts deducted therefrom by application of article 12.2 of the LIS, and for those expenses for the year directly related to the transferred asset.


The following requirements must be met for the application of this reduction:

  1. The transferee uses the rights of use or exploitation in the pursuit of an economic activity and the results of that use do not materialise in the supply of goods or services by the transferee that generate tax-deductible expenses in the transferor, provided that, in the latter case, that entity is related to the transferee.

  2. The transferee does not reside in a country or territory classified as non-cooperative jurisdiction, unless it is located in a Member State of the European Union and the taxpayer proves that the transaction is carried out for valid economic reasons and that it carries out economic activities.

  3. Where the same assignment contract includes ancillary services, should be differentiated in that contract.

  4. That the entity has the necessary accounting records to be able to determine the direct income and expenses corresponding to the assets being transferred.

Filling in form 200

In the event that the taxpayer applies the reduction provided for in the previous sections on income derived from the assignment or transfer of intangible assets, a negative adjustment must be made to the accounting result in box [00372] "Reduction of income from certain intangible assets (art. 23 and DT 20ª LIS)" on page 13 of form 200, entering as the amount the percentage resulting from multiplying by 60 per cent the result of the coefficient provided for in article 23.1 of the LIS.