D. Early investments
Regulation: Article 27.11 Law 19/1994
Taxpayers may carry out early investments, which will be considered as materialization of the RIC that is provided with a charge to profits obtained in the tax period in the one in which the investment is made or in the three subsequent ones, provided that the remaining requirements demanded therein are met.
These provisions must be made charged to profits obtained within the period of validity of the Regulation (EU) Commission Regulation (EC) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, i.e. until December 31, 2026, or as long as the period of validity of the standard that replaces it is respected.
Note:
With effects for thetax periods beginning on or after January 1, 2024, Article 27.11 of Law 19/1994 has been amended by Royal Decree-Law 8/2023, of December 27, in order to eliminate the time limit, allowing allocations to be made from profits obtained within the period of validity of Commission Regulation (EU) 651/2014 of June 17, 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, that is, untilDecember 31, 2026, or as long as the period of validity of the standard that replaces it is respected.
Since the modification of article 27.11 of Law 19/1994 produces effects from January 1, 2024, and since the legislator has not introduced any transitional regime, the new wording of said provision will be applicable with respect to the anticipated investments made from said date, so that said investments will be considered as materialization of the RIC provided that the latter is funded with profits obtained within the period in which the investment is carried out or in the three subsequent ones, and provided that they are made until the December 31, 2026.
However, in the case of early investments made with prior to January 1, 2024, such investments will be considered as materialization of the RIC provided that the latter is provided with profits obtained within the period in which the investment is carried out or in the three subsequent ones, and provided that the aforementioned provisions are made with profits obtained up to the December 31, 2023.
Therefore, effective for tax periods beginning on or after January 1, 2024, early investments made in fiscal years 2021, 2022, and 2023 cannot be considered as a result of the RIC, as its deadline remains December 31, 2023.
In the tax period in which the advance investments are made, the materialization and its financing system must be reported together with the corporate tax return (see point 1d) of section " Documentation to be submitted before the return " of Chapter 1 of this Practical Manual).