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Practical Manual of 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 the Law 43/1995, of December 27, on Corporate Tax and in Chapter IV of Title VI of RDLeg. 4/2004, which were pending application at the beginning of the first tax period that begins on January 1, 2015, may be deducted from said tax period, with the requirements established in their respective applicable regulations prior to that date, within the period and with 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 included and, due to insufficient quota, their application can be made in future tax periods, within the corresponding established period in the applicable regulations, as well as, where appropriate, in the cases in which the beginning 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 Tax on Companies, in article 44 of the RDLeg. 4/2004 or in article 39 of the LIS.

    For the year 2021, only deductions pending application corresponding to a previous tax period starting 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 immediate five years and subsequent periods from the tax period in which the total amount was generated and 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 technologies and of the communication, could be applied in the tax periods that ended in the ten years immediately and successively from the end of the tax period in which their total amount had been generated and not applied. For the other deductions of Chapter IV of Title VI of Law 43/1995, that 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 , can be applied in the tax periods that end in the fifteen immediate and successive years from the end of the tax period in which they were generated and their total amount was not applied. For the other deductions of Chapter IV of Title VI of Law 43/1995 or the LIS, that period was ten years .

  • Of 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 January 1, 2012 not applied in them, can be applied in the tax periods that conclude in the immediate eighteen years and successive. For the other deductions of Chapter IV of Title VI of the RDLeg. 4/2004 corresponding also to the tax periods beginning on January 1, 2012, that 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 , according to the provisions of 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 settlements of tax periods ending in the immediate and successive eighteen years . For the other deductions included in Chapter IV of Title VI of the LIS, this term is fifteen years .

  • The deductions pending to be applied at the beginning of the first tax period that began after the validity of the respective rule modifying the period began, are applicable, provided that the required requirements are met, until completing the new corresponding period counted from the end of the period. tax period in which the deductions were generated.