How to file a return for previous years

Royal Decree-Law 18/2022, of October 18, introduces with the Seventeenth Additional Provision of the LIS a new case of freedom of amortization by which taxpayers may freely amortize, in the tax periods that begin or end in 2023, the investments made in facilities :

• Intended for self-consumption of electrical energy that uses energy from renewable sources in accordance with the provisions of Royal Decree 244/2019, of April 5.

• For thermal use for own consumption that uses energy from renewable sources , that replaces installations that use energy from non-renewable fossil sources and that are made available to the taxpayer from the entry into force of Royal Decree-Law 18/2022 (October 20) and come into operation in 2023.

The aim of this measure is to promote the displacement of fossil fuels by renewable energies produced locally in order to contribute to improving the competitiveness of Spanish companies, the fight against climate change and improving the country's energy security.

Subsequently, Royal Decree-Law 8/2023, of December 27, has modified the Seventeenth Additional Provision of the LIS to extend this assumption of freedom of amortization for one more year , so that the aforementioned investments may also be freely amortized in the tax periods that begin or end in 2024, when they come into operation in 2024.

Therefore, the investments mentioned must be made available to the taxpayer as of November 20, 2022 and come into operation in 2023 and 2024.

The amount of the investment that may benefit from the free amortization regime will be 500,000 euros.

For the application of this assumption of freedom of amortization, it is necessary that during the 24 months following the start date of the tax period in which the acquired elements come into operation the total average workforce of the entity is maintained with respect to the average workforce of the previous twelve months .

To calculate the total average workforce of the entity, the number of employees will be taken into account, in accordance with the terms established by labour legislation, taking into account the contracted working hours in relation to the full working day.

In addition, taxpayers must be in possession of the following documentation that proves that the investment uses energy from renewable sources:

• In the case of generation of electrical energy , the Operating Authorization and, in the case of facilities with surpluses, the accreditation of registration in the Administrative Registry of Electrical Energy Production Facilities (RAIPREE) or, in the case of facilities of less than 100kW, the Electrical Installation Certificate (CIE) in accordance with the Low Voltage Electrotechnical Regulations, in accordance with the provisions of Royal Decree 244/2019, of April 5.

• In the case of renewable gas production systems (biogas, biomethane, renewable hydrogen), proof of registration in the Registry of gas production facilities from renewable sources regulated in article 19 of Royal Decree 376/2022, of May 17.

• In the case of thermal renewable energy generation systems (heat and cold) industrial or process , proof of registration or report from the competent body in the Autonomous Community.

• In the case of thermal renewable energy generation systems (heat and cold) for air conditioning or generation of domestic hot water , energy efficiency certificate issued by the competent technician after the investments have been made, indicating the incorporation of these systems with respect to the certificate issued before the start of the same.

Buildings and installations that are mandatory under the regulations of the Technical Building Code , approved by Royal Decree 314/2006, of March 17, will not be eligible for this incentive, unless the installation has a nominal power greater than the minimum required.

This assumption of freedom of amortization is incompatible with the assumption of freedom of amortization of article 102 of the LIS provided for small entities, so said entities must choose to apply one of the two tax incentives.

With effect for tax periods beginning on or after 1 January 2023, Law 31/2022, of 23 December, introduces with the Eighteenth Additional Provision of the LIS a new case of accelerated depreciation for investments in the following types of electric vehicles, as defined in Annex II of the General Vehicle Regulations, approved by Royal Decree 2822/1998, of 23 December:

• Fuel cell electric vehicle (FCV)

• Fuel Cell Hybrid Electric Vehicle (FCHV)

• Battery Electric Vehicle (BEV)

• Range Extended Electric Vehicle (REEV)

• Plug-in hybrid electric vehicle (PHEV)

Vehicles must be new, be used for economic activities and be put into operation in the tax periods beginning in 2023, 2024 and 2025.

If the above requirements are met, may be amortized based on the coefficient resulting from multiplying by 2 the maximum linear amortization coefficient provided for in the officially approved amortization tables.

With effect from June 30, 2023 , as a consequence of the modification of the eighteenth Additional Provision of the LIS by article 190 of Royal Decree-Law 5/2023, this case of accelerated amortization is extended to investments in new charging infrastructure for electric vehicles , of normal power or high power, in the terms defined in article 2 of Directive 2014/94/EU of the European Parliament and of the Council, of October 22, 2014, regarding the implementation of an infrastructure for alternative fuels, affecting economic activities, and that come into operation in the tax periods that begin in 2023, 2024 and 2025 .

To apply this accelerated depreciation assumption, the taxpayer must :

• Provide the mandatory technical documentation , according to the characteristics of the installation, in the form of a Project or Report, provided for in Royal Decree 842/2002, of August 2, prepared by the authorized installer duly registered in the Integrated Industrial Registry, regulated in Title IV of Law 21/1992, of July 16, on Industry, and in its implementing regulations.

• Obtain the electrical installation certificate completed by the competent Autonomous Community.

With effect for tax periods beginning on or after 1 January 2023, Law 31/2022 of 23 December introduces into Article 29 of the LIS a reduced tax rate of for entities whose net turnover of the immediately preceding tax is less than .

For these purposes, the net amount of turnover will be determined in accordance with the provisions of sections 2 and 3 of article 101 of the LIS.

With effect for tax periods beginning on or after 1 January 2023, Law 38/2022, of 27 December, modifies sections 1 and 2 of article 36 of the LIS to increase the maximum limits of deductions for investments in Spanish and foreign film productions and audiovisual series:

• Spanish film productions

  The amount of the deduction for production carried out in Spanish territory is raised from to 20 million euros. Likewise, in the case of audiovisual series it is specified that the deduction is determined per episode, with the limit being 10 million euros for each episode produced .

  In the Canary Islands, the amount of this deduction may not exceed 36 million euros , when it concerns productions made in the Canary Islands . In the case of audiovisual series , the deduction will be determined per episode and the maximum deduction amount will be 18 million euros .

• Foreign film productions

  The amount of the deduction for production carried out in Spanish territory is raised from to 20 million euros. Likewise, in the case of audiovisual series it is specified that the deduction is determined per episode, with the limit being 10 million euros for each episode produced . In addition, the limit established to determine the basis of this deduction is for creative personnel expenses .

  In the Canary Islands, the amount of this deduction may not exceed 36 million euros , when it concerns expenses incurred in the Canary Islands . In the case of audiovisual series , the deduction will be determined per episode and the maximum deduction amount will be 18 million euros.

With effect from 25 April 2023, Article 7 of Royal Decree 249/2023, of April 4, modifies Article 61 of Royal Decree 634/2015, of July 10, which approves the Corporate Tax Regulations (RIS) to establish the exclusion of withholding on income from the reimbursement or transfer of shares or stocks in listed investment funds or companies to equivalent collective investment institutions in other States , regardless of the market in which they are listed.

In this regard, letter y) of article 61 of the Corporate Tax Regulations is modified, establishing that there will be no obligation to withhold or pay into account the income derived the reimbursement or transfer of shares or stocks issued the following collective investment institutions:

• Exchange-traded funds and listed variable capital investment companies regulated by article 79 of the Regulation implementing Law 35/2003, of November 4, on collective investment institutions, approved by Royal Decree 1082/2012, of July 13.

• Collective investment institutions established abroad similar to those mentioned in the previous number and different from those provided for in article 54 of the Tax Law, whether listed on a regulated market or on a multilateral trading system, regardless of the composition of the index they reproduce, replicate or take as a reference, provided that, in addition, the reimbursement or transmission is not carried out on a market located in a country or territory considered to be a non-cooperative jurisdiction.

Law 28/2022, of December 21, to promote the ecosystem of emerging companies, which entered into force on December 23, 2022, establishes a series of tax incentives for taxpayers of Corporate Tax and Non-Resident Income Tax who obtain income through a permanent establishment located in Spanish territory and that have the status of emerging companies in accordance with this Law:

• They will be taxed at the rate of 15 percent under the terms established in section 1 of article 29 of the LIS in the first tax period in which, having the status of an emerging company, the tax base is positive and in the following three , provided that they maintain said status.

• They may request from the State Tax Administration, at the time of filing the self-assessment, the deferral of payment of the tax debt corresponding to the first two tax periods in which the taxable base of the Tax is positive .

  The State Tax Administration will grant the deferral , with exemption from guarantees, for a period of twelve and six months, respectively, from the end of the period for voluntary payment of the tax debt corresponding to the aforementioned tax periods.

  To enjoy this benefit, the applicant must be up to date in the fulfillment of his/her tax obligations on the date on which the deferral request is made and, in addition, that self-assessment is submitted within the established period. The payment of supplementary self-assessments may not be postponed, in accordance with the procedure established in this section.

  The payment of the deferred tax debt will be made within one month from the day following the expiration of each of the indicated deadlines, without the accrual of late payment interest.

  The deferral of payment of tax debts during the first two years of activity is thus extended to all emerging companies

• They will not be required to make the split payments regulated in articles 40 of the LIS and 23.1 of the TRLIRNR that must be made on account of the settlement corresponding to the tax period immediately following each of the tax periods in which the deferral has been requested referred to in the previous point, provided that in them the status of emerging company is .

With effect for tax periods beginning on January 1, 2023 , Law 38/2022, of December 27, adds to the LIS the Nineteenth Additional Provision which establishes that the tax base of the tax group will be determined in accordance with the provisions of article 62 of the LIS, although in relation to what is indicated in the first paragraph of letter a) of section 1 of article 62 of the LIS, the sum of bases will refer to the positive tax bases and 50 percent of the individual negative bases corresponding to each and every one of the entities that make up the tax group , taking into account the specialties contained in article 63 of the LIS.

With effect successive tax periods the amount of the individual negative tax bases not included in the tax base of the tax group for the reasons mentioned above, will be integrated into the tax base of the same in equal parts in each of the first tax periods beginning on after January 1, 2024, even if any of the entities with negative individual tax bases referred to in the previous section are excluded from the group.

In the event of loss of the tax consolidation regime or extinction of the tax group , the amount of the individual negative tax bases referred to in the first paragraph that is pending integration into the group's tax base, will be integrated in the last tax period in which the group pays taxes under the tax consolidation regime.

With effect for tax periods beginning on or after 1 January 2023, Law 31/2022, of 23 December, introduces the following modifications in relation to the special regime of the Canary Islands Special Zone (hereinafter, ZEC):

• In letter c) of article 42.1 of Law 19/1994 it is established, for taxpayers who carry out the trade operations of goods referred to in letter a) (ii) of section 1 of article 44 of said Law, the obligation to sign quarterly informative declaration of operations with goods carried out outside the ZEC in which the origin and destination of the goods, the type of goods, quantity and other required information will be stated, in accordance with the customs code of the Union and other applicable regulations. They must also keep record of the corresponding customs documentation.

• A new wording is given to article 44 of Law 19/1994 for the purposes of determining the part of the taxable base of the ZEC entity that, for the purposes of applying the special tax rate, is derived from operations carried out materially and effectively within the geographical area of the ZEC.

• Article 50 bis is added to the Development Regulation of Law 19/1994 , approved by Royal Decree 1758/2007, of December 28, to establish in relation to the determination of the part of the tax base corresponding to operations carried out effectively and materially in the geographic area of the ZEC in which cases it is considered that aircraft contribute to improving the connections of the Canary Islands.

With effect for tax periods beginning between January 1, 2023 and December 31, 2028, the Seventieth Additional Provision of Law 31/2022, of December 23, introduces the special tax regime of the Balearic Islands, in recognition of the specific and differential fact of its insularity.

This special regime allows taxpayers of the Corporate Tax and Non-Resident Income Tax to apply the following tax benefits :

• Reserve for investments in the Balearic Islands

  Taxpayers will be entitled to a reduction in the tax base of the amounts that, in relation to their establishments located in the Balearic Islands, they allocate from their profits to the investment reserve .

  This reduction will be applied to the allocations made to the investment reserve in each tax period up to the limit of 90 percent of the portion of profit obtained in the same period that is not subject to distribution , insofar as it comes from establishments located in the Balearic Islands.

  In no case may the application of the reduction determine that the tax base is negative.

  The amounts allocated to the reserve for investments in the Balearic Islands must be materialized within a maximum period of three years , counted from the date of accrual of the tax corresponding to the year in which it was provided for, in the realization of one of the investments included in the regulations.

  The assets in which the investment is materialized must be located or received in the Balearic archipelago, used therein, affected and necessary for the development of economic activities of the taxpayer , except in the case of those that contribute to the improvement and protection of the environment in the Balearic territory.

  In addition, taxpayers may make advance investments, which will be considered as materialization of the investment reserve that is provided from profits obtained in the tax period in which the investment is made or in the three subsequent periods, provided that the required requirements are met.

  The materialization and its financing system will communicated together with the Corporate Tax declaration for the tax period in which advance investments are made.

  The application of the benefit of the investment reserve will be incompatible, for the same assets and expenses, with the deductions to encourage the performance of certain activities regulated in Chapter IV of Title VI of Law 27/2014, of November 27, on Corporate Income Tax. It will also be incompatible for the same goods and expenses with any tax benefit or measure of a different nature that has the status of state aid under European Union law, if said accumulation exceeds the limits established in the Community legislation that, in each case, are applicable.

• Special regime for industrial, agricultural, livestock and fishing companies

  A bonus of 10 percent of the full quota corresponding to the income derived from the sale of tangible goods produced in the Balearic Islands by themselves, typical of agricultural, livestock, industrial and fishing activities is established ## , in the latter case in relation to the catches made in their fishing and aquaculture zone. Those persons or entities domiciled in the Balearic Islands or in other territories that are dedicated to the production of such goods in the archipelago, through a branch or permanent establishment, may benefit from this bonus.

  The application of the bonus in each tax period will require that the average workforce of the entity in said period is not less than the average workforce corresponding to the twelve months prior to the beginning of the first tax period in which the regime provided for in this section takes effect.

  When the entity has been established within the aforementioned period of twelve months, the average workforce resulting from that period will be taken into account.

  This bonus may be increased up to 25 percent in those tax periods where there has been an increase in the average workforce of no less than one with respect to the average workforce of the previous tax period and said increase is maintained for at least a period of three years from the date of completion of the tax period in which this increased bonus is applied.

  When the entity has been established in the first tax period in which the special tax regime takes effect, the application of the bonus will require that said entity meets the requirements for the application of the reduced tax rate for newly created entities regulated in article 29.1 of Law 27/2014, of November 27, on Corporate Tax . In this case, the rules set out in this number will be followed.

  The bonus will not be applicable to income derived from the sale of tangible goods produced in the Balearic Islands related to shipbuilding, synthetic fibres, the automobile industry, steel and coal industries.

The wording given by Law 11/2021, of July 9, on measures to prevent and combat tax fraud, to the First Additional Provision of Law 36/2006, of November 29, on measures to prevent tax fraud, adapts the term tax havens to the concept of "non-cooperative jurisdictions". The criteria for determining which countries and territories are considered non-cooperative jurisdictions are also updated.

Thus, Order HFP/115/2023 , of February 9, approves a new list of countries and territories that are considered non-cooperative jurisdictions.

Order entered into force on February 11, 2023 and is applicable to taxes without a tax period accrued from its entry into force and to other taxes whose tax period begins from that moment .

However, for countries or territories included in the new list that were not included in the old list of Royal Decree 1080/1991, Order HFP/115/2023 entered into force on August 11, 2023 and applies to taxes without a tax period accrued from its entry into force, and to other taxes whose tax period begins from that moment.

Temporary energy tax

The expense for the energy tax planned on a temporary basis during the years 2023 and 2024 and its advance payment, will not be tax deductible for the purposes of determining the taxable base of the Corporate Tax, as established in article 2.6 of Law 38/2022, of December 27, for the establishment of temporary taxes on energy and credit institutions and financial credit establishments and by which the temporary solidarity tax on large fortunes is created, and certain tax rules are modified.

Temporary levy on financial institutions and credit institutions

The expense for the tax on credit institutions and financial credit establishments planned on a temporary basis during the years 2023 and 2024 and its advance payment, will not be tax deductible for the purposes of determining the taxable base of the Corporate Tax as established in article 2.6 of Law 3872022 of December 27, for the establishment of temporary taxes on energy and credit institutions and financial credit establishments and by which the temporary solidarity tax on large fortunes is created, and certain tax rules are modified.

The Constitutional Court in Judgment 11/2024 , dated January 18, 2024, declares the unconstitutionality and nullity of the Fifteenth Additional Provision and section 3 of the sixteenth transitional provision of the LIS, as amended by article 3. First, sections One and Two of Royal Decree-Law 3/2016, of December 2, adopting measures in the tax field aimed at the consolidation of public finances and other urgent measures in social matters, which regulated:

• The establishment of special limits on the offsetting of negative tax bases and the allocation of provisions for impairment of credits and other assets and certain provisions for taxpayers whose INCN is at least 20 million euros during the 12 months prior to the date on which the tax period begins.

• The introduction of a new limit on deductions to avoid double taxation also for large companies.

• The obligation to reverse within a certain maximum period the impairments deducted in previous fiscal years by taxpayers.