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Practical Handbook for Companies 2021

Transitional scheme (20th transitional provision LIS)

With effect for tax periods beginning on or after 1 January 2018, Law 6/2018, of 3 July, on the General State Budget for 2018 introduced several amendments to the twentieth transitional provision of the LIS, so that as of that date, the transitional regime applicable to the reduction of income from certain intangible assets available prior to 1 July 2016 is as follows:

Transfers of intangible assets made before 29-09-2013

The taxpayer may opt to apply the regime established in Article 23 of TRLIS, as amended by Law 16/2007, of 4 July, to all tax periods remaining until the end of the corresponding contracts.

This shall apply until 30 June 2021.

As from 1 July 2021, the taxpayer must apply the regime provided for in article 23 of the LIS to these transfers, as amended by Law 6/2018, of 3 July, on the General State Budget for 2018.

Transfers of intangible assets made from 29-09-2013 to 30-06-2016

The taxpayer may opt to apply the regime established in Article 23 of the LIS, as amended on 1 January 2015, for all tax periods remaining until the end of the corresponding contracts.

The above shall apply until 30 June 2021, except where the intangible assets were acquired between 1 January and 30 June 2016 directly or indirectly from an entity related to the transferor and at the time of acquisition were not subject to an income tax deduction scheme for certain intangible assets, in which case the provisions of this paragraph shall apply until 31 December 2017.

Therefore, as of 1 July 2021, or 1 January 2018, where applicable, the transfers that have been made in accordance with the provisions of this section must apply the regime established in article 23 of the LIS, as amended by Law 6/2018, of 3 July, on the General State Budget for 2018.

A tener en cuenta:

The options referred to in the two previous sections shall be exercised through the tax return for the 2016 tax period (box [00067] "Option transitional regime for the reduction of income from certain intangible assets (DT 20ª LIS)" on page 1 of form 200).

Transfers of intangible assets subject to disposals for which the taxpayer has exercised the option made from 01-07-2016 to 30-06-2021

Taxpayers may opt to apply the regime established in article 23 of the LIS, as amended at 1 January 2015, to transfers of intangible assets that had previously been the object of transfers for which they had exercised the option established in sections 1 or 2 above, which are carried out from 1 July 2016 to 30 June 2021.

However, if the intangible assets were acquired between 1 January and 30 June 2016 directly or indirectly from an entity related to the transferor and at the time of acquisition were not subject to a scheme for the reduction of income from certain intangible assets, taxpayers may only apply this scheme to income realised until 31 December 2017.

A tener en cuenta:

This option shall be exercised through the tax return corresponding to the tax period in which the transfer took place (box [00067] "Option transitional regime for the reduction of income from certain intangible assets (DT 20ª LIS)" on page 1 of form 200).

Application for tax periods beginning on or after 01/01/2018 of the transitional regime for the reduction of income from certain intangible assets available prior to 01/07/2016 (TD 20ª LIS).

Transfers of the right to use or exploit intangible assets

Completed before 29/09/2013Application limit optionFrom 1/07/2021
The following may opt to apply the regime established in Article 23 of the TRLIS (drafted by Law 16/2007, of 4 July) Until 30/06/2021 The regime provided for in Article 23 of the LIS (drafted by Law 6/2018, of 3 July) must be applied.
Carried out between 29/03/2013 and 30/06/2016Application limit optionAs of 1/07/2021 or 1/01/2018
They may opt to apply the regime established in Article 23 of the LIS (as amended on 1 January 2015). Until 30/06/2021 The regime provided for in Article 23 of the LIS (drafted by Law 6/2018, of 3 July) must be applied.
Until 31/12/2017 (if the intangible assets were acquired between 1 January and 30 June 2016 directly or indirectly from an entity related to the transferor and at the time of acquisition were not subject to an income tax deduction scheme for certain intangible assets)

Transfers of intangible assets that had previously been the subject of disposals for which the taxpayer had exercised the option and that take place from 1/07/2016 to 30/06/2021

Taxation optionDate of transmission
Application of the regime established in Article 23 of the LIS (as amended on 1 January 2015). Transfers taking place from 01/07/2016 to 30/06/2021
Transfers from 01/07/2016 to 31/12/2017 (if the intangible assets were acquired between 1 January and 30 June 2016 directly or indirectly from an entity related to the transferor and at the time of acquisition they were not subject to a regime for the reduction of income from certain intangible assets).