How to file a return for previous years
Skip information indexTax periods starting on or after January 1, 2020
Article 7 of Royal Decree-Law 23/2020, of June 23, in the wording given by the Eighth Final Provision of Royal Decree-Law 34/2020, of November 17, with effects for tax periods that begin within the years 2020 and 2021 , establishes that the deduction percentage referred to in letter c) of article 35.2 of the LIS (Corporate Tax Law) will increase by 38 percentage points for expenses incurred in projects started on or after June 25, 2020 consisting of carrying out technological innovation activities whose result is a technological advance in obtaining new processes of production in the value chain of the automotive industry or substantial improvements of already existing ones. Thus, this deduction is increased depending on the type of taxpayer among those taxpayers who are considered small and medium-sized businesses in accordance with the provisions of Annex I to Commission Regulation ( EU (European Union)) No 651/2014, of 17 June 2014, and those who don't. In the case of taxpayers who do not have this consideration , the expected increase will be 3 percentage points.
Consequently, in accordance with the previous rules, small and medium-sized businesses will be applied a deduction percentage increased to 50 percent , since companies that do not have such consideration, will be applied the deduction percentage increased to 15 percent. Likewise, for the application of this deduction, in addition to the entity having obtained a reasoned report , in the terms established in letter a) of article 35.4 of the LIS .
The fourth Final Provision of Royal Decree-Law 23/2020, of June 23, introduced the sixteenth Additional Provision in the LIS , which includes a new assumption of freedom of amortization on investments made in the electric, sustainable or connected mobility value chain. In this sense, the sixteenth Additional Provision in the LIS , in its wording given by Royal Decree-Law 34/2020, includes the tax incentive of freedom of amortization in investments made in the electric, sustainable or connected mobility value chain for investments made in the tax periods ending between April 2, 2020 and June 30, 2021. In this way, investments in new elements of tangible fixed assets that involve the sensorization and monitoring of the production chain, as well as the implementation of manufacturing systems based on modular platforms or that reduce environmental impact, affecting the automotive industrial sector, made available to the taxpayer and that come into operation between April 2, 2020 and June 30, 2021, provided 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 compared to the average workforce of the year 2019. It should be taken into account that the maximum amount of the investment that can benefit from the freedom of amortization regime will be 500,000 euros.
Furthermore, for the application of this assumption of freedom of amortization, taxpayers must provide reasoned report issued by the Ministry of Industry, Commerce and Tourism to qualify the taxpayer's investment as suitable. Said report will be binding for the Tax Administration.
This new assumption of freedom of amortization regulated in the sixteenth Additional Provision of the LIS is incompatible with the assumption of freedom of amortization established in article 102 of the LIS for small entities, so these entities will have to choose to apply one of the two tax incentives.
Spanish film productions (article 36.1 of the LIS)
Royal Decree-Law 17/2020, of May 5, modifies the definition of cinematographic productions and allows until August 31, 2020 (this period is extended until January 31, 2021 , as established in the first section of Order CUD/807/2020, of August 27) are also considered commercial release of a film , without losing its status as a cinematographic film, the deduction for investments in Spanish cinematographic productions regulated in article 36.1 of the LIS being applicable, which is carried out through television and platforms that offer streaming content (through television audiovisual communication services, as well as electronic communication services that broadcast television channels or program catalog services).
Furthermore, with effects for tax periods beginning on or after January 1, 2020, the first Final Provision of the aforementioned Royal Decree-Law 17/2020 introduces changes in the deduction for investments in Spanish productions of feature films and short films and audiovisual fiction, animation or documentary series regulated in article 36.1 of the LIS, modifying its requirements and increasing the percentages and maximum limits:
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The scope of application of the deduction is expanded, allowing investment to also be made in short films (until December 31, 2019, only in feature films) and audiovisual fiction, animation or documentary series.
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One of the deduction requirements is modified, establishing that is delivered (until December 31, 2019, deposit is required) a copy new and in perfect condition from the production in the Spanish Film Library or the film library officially recognized by the respective Autonomous Community.
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The deduction percentages applicable to the producer of the work are increased:
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Until 12-31-2019:
30 percent with respect to the first million base of the deduction.
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As of 1-1-2020:
30 percent of the first million base of the deduction.
25 percent on the excess of said amount.
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The base of the deduction is modified, moving its maximum amount from 3 million to 10 million euros.
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The percentages in which the limit of 50 percent of the production cost established for the amount of this deduction is raised, together with the rest of the aid received by the taxpayer, are modified.
Foreign film productions (article 36.2 of the LIS)
With effects for the tax periods that begin on or after January 1, 2020 , the first Final Provision of the aforementioned Royal Decree-Law 17/2020 introduces changes in the deduction for investments in foreign productions of feature films or audiovisual works regulated in article 36.2 of the LIS, modifying its requirements and increasing the percentages and maximum limits:
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The scope of application of the deduction is modified, establishing that the producers registered in the Registry will be entitled to this deduction for expenses incurred in Spanish territory. Administration of Cinematographic Companies of the Institute of Cinematography and Audiovisual Arts that are in charge of the execution of a foreign production of feature films or audiovisual works that allow the preparation of a physical support prior to their serial industrial production.
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The applicable deduction percentages are increased:
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The requirement to apply this deduction that the minimum expenses incurred in Spanish territory be at least 1 million euros is an exception for pre-production and post-production expenses for animation and visual effects carried out in Spanish territory, establishing said limit at 200,000 euros.
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The base of the deduction is modified, moving its maximum amount from 3 million to 10 million euros.
Subsequently, with effects also for tax periods that begin on or after January 1, 2020, the fifth Final Provision of Royal Decree-Law 34/2020, of November 17, modifies article 36.2 of the LIS with the purpose of adapting the deduction for investments in foreign productions of feature films or audiovisual works to the Communication from the European Commission on state aid to cinematographic works and other productions in the audiovisual sector:
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The production phase is incorporated for the application of the incentive in animation productions and the application of said incentive to is maintained ## execution in Spain ##3##of the part of the international productions related to visual effects .
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It is established that, in the case of animation productions, the expenses incurred in Spanish territory will be at least 200.00 euros.
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A new percentage of 30 percent is established when the producer is in charge of the execution of visual effects services and the expenses incurred in Spanish territory are less than 1 million euros. The amount of this deduction may not exceed the amount established by Commission Regulation (EU) 1407/2013, of December 18, 2013, relating to the application of articles 107 and 108 of the Treaty on the Functioning of the European Union to minimis aid
With effect for tax periods beginning on January 1, 2019, the single repealing provision of Royal Decree-Law 28/2018, of December 28, for the revaluation of public pensions and other urgent measures in social and labor matters and employment, repeals article 4 of Law 3/2012, of July 6, on Urgent Measures for the Reform of the Labor Market, which established the possibility of celebrating employment contracts for an indefinite period to support entrepreneurs.
However, the sixth transitional provision of the aforementioned Royal Decree-Law 28/2018 establishes that indefinite employment contracts to support entrepreneurs concluded until December 31, 2018, are considered valid and will continue to be governed by the regulations in force in the time of its celebration, as well as, where appropriate, the corresponding incentives.
Therefore, contracts signed during 2018 will generate the right to apply the deduction for job creation of article 37 of the LIS. This deduction, as provided for in article 37 of the LIS, will be made in the full amount of the tax period corresponding to the end of the one-year trial period required in the corresponding type of contract.
Consequently, if the contract has been validly signed in 2018 and the trial period ends in one year, this deduction may be applied to the full installment for the 2019 financial year, in the event that the tax period coincides with the calendar year.
Regarding the 2020 financial year, the right to apply this deduction cannot be generated since as of January 1, 2019, this type of contract cannot be signed.
In the sixth Final Provision of Royal Decree-Law 26/2020, of July 7, with effects for tax periods that begin on January 1, 2020 that have not concluded on July 9, 2020 (entry date in force of this Royal Decree-Law), the following modifications are introduced in relation to the tax regime provided for port Authorities:
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Port authorities are removed from the list of entities partially exempt from article 9.3 of the LIS. In this way, the stop applying the tax regime for exempt entities regulated in Chapter general corporate tax regime.
The reference made to them in letter a) of article 110 of the LIS is also eliminated, regarding the type of income that is considered not to come from the performance of economic activities.
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A new deduction is introduced in article 38 bis of the ## ##1##LIS in the full quota ##3##for which The port authorities can deduct from it:
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Investments and expenses related to certain infrastructures, services, actions, access, safety and security plans and facilities.
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Investments and expenses made for the construction, replacement or improvement of seaport infrastructure, for the construction, replacement or improvement of access infrastructure thereto or for dredging activities in the terms established in Chapter I and in articles 56 ter and 56 quater of Commission Regulation ( EU ) No. 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market.
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Investments that exceed the thresholds established in letters e) and f) of article 4.1 of Regulation ( EU ) No. 651/2014 may be deducted to the extent that the European Commission has declared their compatibility with the internal market in accordance and the conditions established by the Commission in the corresponding Decision are met.
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In relation to the new deduction of article 38 bis of the LIS , a is established in article 15 n) of the LIS ## new assumption of non-deductible expense ##3##, according to which those expenses that are the subject of the deduction regulated in said article 38 bis of the LIS will not be deductible, including the corresponding to the amortization of the assets whose investment has generated the right to the aforementioned deduction.
Royal Decree-Law 35/2020, of December 22, establishes in its article 14 that taxpayers of Corporate Tax who meet the conditions of article 101 of the LIS to be considered small companies , in the tax periods that begin in 2020 and in 2021 may deduct , in said periods, the losses due to deterioration of credits derived from the possible insolvencies of debtors when three months have elapsed since the maturity of the obligation referred to in letter a) of article 13.1 of the LIS.
Therefore, for small companies, the period established to deduct losses arising from the impairment of credits arising from the possible insolvency of debtors has been reduced from 6 months to 3 months, the time that must have elapsed between the obligation becoming due and the accrual of the tax.
Royal Decree-Law 4/2021, of March 9, introduces with effect for tax periods that begin on January 1, 2020 and that have not concluded upon the entry into force of this Royal Decree -law , a new article 15 bis in the LIS , with the aim of transposing the Directive ( EU ) 2016/1164 of the Council, of July 12, 2016 regarding hybrid asymmetries that take place between Spain and other Member States and between Spain and third countries or territories.
This Royal Decree-Law 4/2021, transposes a "primary rule" , understood as the solution that is considered appropriate to nullify the fiscal effects of hybrid asymmetry, and a "secondary rule" which will be applicable when the first has not been applied, either because there is a discrepancy in the transposition and application of the Directive even though all Member States have acted in accordance with it or because a third country or territory that does not have precepts to neutralize the effects of such asymmetries participates in the hybrid asymmetry.
Finally, Royal Decree-Law repeals article 15 j) of the LIS.
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In the first Final Provision of Royal Decree-Law 34/2020, of November 17, the temporal scope contained in article 27.11 relating to advance investments and in article 29.2, which regulates the authorization of registration in the official Registry of Entities of the Canary Islands Special Zone (ZEC) of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, establishing the deadline of December 31, 2021.
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The second Final Provision of Royal Decree-Law 39/2020, of December 29, introduces a new eighth transitional provision in Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, for extend the terms linked to the Reserve for Investments in the Canary Islands.
For these purposes, the maximum period of three years referred to in article 27.4 of Law 19/1994, of July 6, will be four years for the amounts intended for reserve for investments in the Canary Islands endowed , in the terms indicated in its regulatory regulations, with benefits obtained in tax periods beginning in 2016.
Furthermore, the term referred to in the first paragraph of article 27.11 of Law 19/1994, of July 6, will be four years for the anticipated investments materialized in 2017.
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The third Final Provision of Royal Decree-Law 12/2021 modifies the fourteenth Additional Provision of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, establishing which, with effects for the tax periods that begin during the year 2020, raising the limits of deductions for investments in film productions, audiovisual series and live performing arts and musical shows performed in the Canary Islands. In this way, the amount of the deduction for investments in Spanish productions of feature films and short films and audiovisual fiction, animation or documentary series referred to in section 1 of article 36 of Law 27/2014, of November 27 , of the Corporate Tax, may not be higher than 12.4 million euros in the case of productions made in the Canary Islands.
On the other hand, the amount of the deduction for expenses incurred in Spanish territory for foreign productions of feature films or audiovisual works referred to in section 2 of article 36 of Law 27/2014 may not be higher to 12.4 million euros when it comes to expenses incurred in the Canary Islands.
On January 31, 2020, the United Kingdom effectively left the European Union.
The Withdrawal Agreement contemplates a transitional period until December 31, 2020, during which community legislation has continued to be applied in the United Kingdom in relation to the internal market, customs union and community policies. The European Union has treated the United Kingdom as if it were a Member State, except for its participation in EU institutions and governance structures. In particular, during that period, it has not been necessary to carry out customs formalities.
The transitional period ended on December 31, 2020.