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Practical Handbook for Companies 2021

Deduction for investment of profits (art. 37 RDLeg.4/2004)


This deduction was repealed by the new Corporate Income Tax Act with effect for tax periods starting on or after 1 January 2015.However, since the deduction becomes effective when the investment is made, paragraph 5 of the twenty-fourth transitional provision of the LIS establishes the possibility of applying this deduction in tax periods commencing on or after 1 January 2015, under the terms and conditions established in article 37 of the RDLeg.4/2004, even if the investment and other requirements occur in tax periods starting on or after that date.