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Practical Manual for Companies 2021.

Deductions to be applied

According to the provisions of section 3 of the twenty-fourth transitional provision of the LIS , the deductions provided for in Chapter IV of Title VI of Law 43/1995, of December 27, on Corporate Income Tax and in Chapter IV of Title VI of RDLeg. 4/2004, which were pending application at the beginning of the first tax period starting on or after 1 January 2015, may be deducted from that tax period, with the requirements provided for in their respective applicable regulations prior to that date, within the period and under the conditions established in article 39 of the LIS.

In application of the above, the following must be taken into account:

  • For each year between 2003 and 2020 the deductions generated in them are collected and, due to insufficient quota, their application can be made in future tax periods, within the corresponding period established in the applicable regulations, as well as, where appropriate, in cases where the start of the calculation of said period has been deferred in accordance with the provisions of article 37 of Law 43/1995, of December 27, on Corporate Tax, in article 44 of the RDLeg. 4/2004 or in article 39 of the LIS.

    For 2021, only deductions pending application corresponding to a previous tax period beginning in 2021 will be collected.

  • In the tax periods beginning before June 25, 2000 , the deductions of Chapter IV of Title VI of Law 43/1995 could be applied in the tax periods that ended in the five years immediately following the tax period in which they were generated and their total amount was not applied.

  • In the tax periods beginning between June 25, 2000 and December 31, 2001 , deductions for research and development and technological innovation, as well as those for the promotion of information and communication technologies, could be applied in the tax periods ending in the ten years immediately following the end of the tax period in which they were generated and their total amount had not been applied. For the other deductions in Chapter IV of Title VI of Law 43/1995, this period was five years .

  • In the tax periods beginning on or after January 1, 2002 , deductions for research and development and technological innovation, as well as those for the promotion of information and communication technologies, may be applied in the tax periods ending in the fifteen years immediately following the end of the tax period in which they were generated and their total amount was not applied. For the other deductions in Chapter IV of Title VI of Law 43/1995 or the LIS, this period was ten years .

  • Regarding the deductions for research and development and technological innovation regulated in article 35 of the RDLeg. 4/2004, the amounts corresponding to the tax periods beginning on or after January 1, 2012 not applied in them, may be applied in the tax periods that conclude in the immediate and successive eighteen years. For the other deductions in Chapter IV of Title VI of the Royal Decree-Law. 4/2004 corresponding equally to the tax periods starting from January 1, 2012, this period was fifteen years , in accordance with the provisions of article 44 of the RDLeg. 4/2004.

  • In the tax periods beginning on or after January 1, 2015 , as provided in article 39 of the LIS, the amounts corresponding to the deduction for research and development and technological innovation regulated in article 35 of the LIS may be applied in the liquidations of the tax periods that conclude in the immediate and successive years. For the other deductions included in Chapter IV of Title VI of the LIS, this period is fifteen years .

  • The deductions pending application at the beginning of the first tax period that began after the respective rule modifying the term has come into force are applicable, provided that the required requirements are met, until completing the new corresponding term counted from the end of the tax period in which the deductions were generated.