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Tax incentives for small enterprises

If you are a small enterprise, these are the incentives you can benefit from

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Losses for impairment of credits for possible debtor insolvencies

  1. The entity must be considered small in the tax period in which the loss is deductible.

  2. The amount of the provision cannot exceed 1% of the balance of debtors existing at the end of the tax period.

    For these purposes, the debtors for which the loss due to impairment of credits due to bad debts established in article 13.1 of the law on this tax has been recognised and those whose losses due to impairment are not deductible according to the provisions of said article are not included in said balance.

  3. The balance of the allocation made by this method at the end of the tax period may not exceed 1% of the aforementioned debtors existing at the conclusion of the same.

  4. Taxpayers who meet the conditions of article 101 of the LIS in the tax periods beginning in 2020 and 2021 may deduct, in said periods, losses due to impairment of credits arising from possible insolvencies of debtors when, at the time of the accrual of the Tax, the period that has elapsed since the due date of the obligation referred to in letter a) of section 1 of article 13 of said Law is three months.

Impairment losses on credits to cover the risk arising from possible insolvency of debtors, incurred in tax periods in which the conditions of a small company are no longer met, will not be deductible up to the amount of the balance of the deductible impairment loss when the entity was considered a small company.