Skip to main content
Practical Handbook for Companies 2021

Deduction rates

A deduction will be made from the gross tax liability of 12 per cent of the positive income obtained in the transfer for valuable consideration of the assets and included in the tax base subject to the general tax rate or to the scale provided for in article 114 of the RDLeg. 4/2004.

The deduction is 7 per cent, 2 per cent or 17 per cent when the taxable base is taxed at the rates of 25 per cent, 20 per cent or 35 per cent respectively.

However, in the case of transactions in instalments or with a deferred price, the deduction percentages of 12 and 17 percent established in section 1 of Article 42 of RDLeg.4/2004 will be, respectively, of 10 and 15%, regardless of the tax period in which the deduction for income integrated in the gross tax base of the tax periods beginning in 2015.

Percentage applicable to the deduction for reinvestment of extraordinary profits.Entities taxed in accordance with the scale provided for in additional provision twelve of RDLeg.4/2004, as they meet the requirements established therein, they may apply the percentage of 12 per cent in the deduction for reinvestment of extraordinary profits.