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Practical Handbook for Companies 2021

Before 29-09-2013

Regulation: Article 23 RDLeg.4/2004, as amended by Law 16/2007 of 4 July 2007.

Amount of the reduction and requirements

Income from the assignment of the right to use or exploit patents, drawings or models, plans, secret formulas or procedures, of rights to information relating to industrial, commercial or scientific experiments, shall be included in the taxable base at 50 per cent of their amount, when the following conditions are met:

  1. The transferor has created the assets being transferred.

  2. 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.

  3. The transferee does not reside in a country or territory that qualifies as non-cooperative jurisdiction.

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

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

Filling in form 200

In the event that the taxpayer applies the reduction foreseen in the previous section on income derived from the 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)", entering 50 per cent of said income.