Skip to main content
Practical Manual of Companies 2022.

Deduction for reinvestment of extraordinary profits (DT 24ª.7 LIS and art. 42 RDLeg. 4/2004)

According to the provisions of section seven of the twenty-fourth transitional provision of the LIS , the income covered by the deduction for reinvestment of extraordinary profits provided for in article 42 of RDLeg. 4/2004, according to the current wording in tax periods beginning before January 1, 2015, will be regulated by what is established therein and in its implementing regulations, even when the reinvestment and other requirements occur in tax periods beginning after from January 1, 2015.

The conditions and requirements indicated by the Corporate Tax Law for the application of deductions for reinvestment of extraordinary profits in tax periods beginning on or after January 1, 2015 are the following:

  1. Requirements
  2. Deduction base
  3. Deduction percentages
  4. Special reinvestment plans
  5. Filling in form 200