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Practical Manual of Companies 2021.

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

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

Reduction amount

Income from the assignment of the right to use or exploit patents, drawings or models, plans, formulas or secret procedures, rights to information relating to industrial, commercial or scientific experiences, They will be entitled to a reduction in the tax base in the percentage resulting from multiplying by 60 percent the result of the following coefficient:

  1. In the numerator , the expenses incurred by the transferring entity directly related to the creation of the asset, including those derived from subcontracting with third parties not linked to it. These expenses will increase by 30 percent, without, in any case, the numerator being able to exceed the amount of the denominator.

  2. In the denominator, the expenses incurred by the transferring entity directly related to the creation of the asset, including those derived from subcontracting and, where applicable, from the acquisition of 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 will also apply in the case of transfer of the intangible assets referred to therein, when said transfer is made between entities that do not have the status of related .

Income from the transfer of intangible assets

In the case of transfer of intangible assets, for the purposes of their integration into the tax base with the reduction included in the previous section, regardless of whether the asset is recognized in the entity's balance sheet or not, income will 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 that are deducted therein by application of article 12.2 of the LIS, and for those expenses of the year directly related to the asset ceded.

Requirements

To apply this reduction, the following requirements must be met:

  1. That the assignee uses the rights of use or exploitation in the development of an economic activity and that the results of that use do not materialize in the delivery of goods or provision of services by the assignee that generate tax deductible expenses in the transferor entity, provided that, in the latter case, said entity is linked to the transferee.

  2. That 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 operation responds to valid economic reasons and carry out economic activities.

  3. When the same assignment contract includes accessory services, the consideration corresponding to them must be differentiated in said contract.

  4. That the entity has the accounting records necessary 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 the income derived from the assignment or transmission of intangible assets, he must make a negative adjustment to the accounting result in box [00372] «Reduction of income from certain intangible assets (art. 23 and DT 20 LIS)» on page 13 of model 200, recording as the amount the percentage that results from multiplying by a 60 percent the result of the coefficient provided for in article 23.1 of the LIS.