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Practical Manual of Companies 2022.

Deduction percentages

The applicable deduction percentage will be 12 percent of the expenses incurred in the tax period for this concept.

Keep in mind:

For tax periods starting within years 2020 and 2021 , provided that the requirements established in article 7 of Royal Decree-Law 23/2020, of June 23, are met, the percentage of deduction relating to expenses incurred in carrying out technological innovation activities whose result was a technological advance in obtaining new production processes in the value chain of the automotive industry or substantial improvements to existing ones was increased:

  • At 50 percent for those taxpayers considered small and medium-sized enterprises in accordance with the provisions of Annex I to Regulation (EU) No. 651/2014 of the Commission of 17 June 2021, declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

  • To 15 percent for the rest of entities that did not have such consideration.

Consequently, for tax periods beginning in 2022, the percentage to be applied to these expenses incurred in the automotive industry will be the one generally established, that is, 12 percent.