Requirements

The first section of the twenty-fourth transitional provision of the LIS establishes that the deductions for investments in new tangible fixed assets generated in accordance with article 26 of Law 61/1978, of December 27, on Corporate Tax, in respect of which the taxpayer has chosen to apply them in the tax periods in which payments are made in accordance with the provisions of article 218.3 of the Corporate Tax Regulations, approved by Royal Decree 2631/1982, of October 15, will continue to be applied in the settlements of the tax periods in which the aforementioned payments are made, under the conditions and requirements provided for in the aforementioned law.

The deductions referred to in the previous paragraph shall be deducted in compliance with the limit on net tax rate provided for in the aforementioned Law and in the corresponding General State Budget Laws.

For these purposes, will be understood as the net quota resulting from reducing the full quota by the deductions and bonuses provided for in Chapters II and III of Title VI of the LIS.

Deductions from different tax modalities or periods of article 26 of Law 61/1978, of December 27, may not exceed a joint limit of 35 percent of the net quota .

The deductions referred to in the preceding paragraphs will be applied once the deductions and bonuses established in Chapters II and III of Title VI of the LIS have been made, and then the deductions established in Chapter IV of Title VI, the limit of which will be calculated independently of that established in the preceding paragraph.