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Practical Manual for Companies 2023.

Requirements

  • The deduction will be applied to the profits obtained in the year, not including the accounting of the Corporate Tax, which are invested in new elements of tangible fixed assets or real estate investments, provided that they are assigned to economic activities and the conditions established in article 37 of the RDLeg. are met. 4/2004.

    Investment in new elements may also be made through a financial leasing contract.

  • As a general rule, the investment be made within the between the beginning of the tax period in which the profits to be invested are obtained and the two subsequent years. Exceptionally, the taxpayer may request the tax authorities to approve a special investment plan.

  • Investment shall be deemed to have been made on the date on which the assets are made available, including those that are the subject of financial leasing contracts referred to in section 1 of the Seventh Additional Provision of Law 26/1988, of July 29. However, in the latter case, the deduction will be conditional, in a resolutory manner, on the exercise of the purchase option.

  • Entities that apply this deduction must set aside a reserve for investments , for an amount equal to the deduction base, which will be unavailable as long as the assets in which the investment is made must remain in the entity.

    The investment reserve must be provided from the profits of the year whose amount is subject to investment.

  • The assets subject to investment must remain in operation in the entity's assets, except for justified loss, for a period of 5 years, or during their useful life if it is less.

    However, the deduction will not be lost if the transfer of the assets subject to investment occurs before the end of the period indicated in the previous paragraph and the amount obtained or the net book value, if lower, is invested in the terms established in article 37 of the Royal Decree-Law. 4/2004.

  • Until the deadline established for maintaining the investment is met, the taxpayer must include in its annual accounts information on: the amount of the profits eligible for the deduction and the year in which they were obtained; the unavailable reserve that must be allocated; Identification and amount of the items purchased; and the date or dates on which the elements have been acquired and assigned to economic activity.

The non-compliance with any of the requirements set out in article 37 of the RDLeg. 4/2004 will determine the loss of the right to this deduction, and its regularization in the manner established in article 137.3 of the aforementioned regulation.