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Regulatory developments 2020

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Main tax measures in the field of VAT included in RD-Law 34/2020 of 17 November on urgent measures to support business solvency and the energy sector, and in the field of taxation (BOE 28 November)

CORPORATION TAX

  • With effect for tax periods beginning on or after 1 January 2020, Article 36.2 of Law 27/2014 of 27 November on Corporation Tax is amended to adapt the deduction for investments in foreign productions of feature films or audiovisual works to the European Commission’s Communication on State aid to cinema and other audiovisual productions.In this sense, the production phase for the application of the incentive in animation productions is incorporated and the application of this incentive to the execution in Spain of the part of the international productions related to visual effects is maintained.It is established that in the case of animation productions, the expenses incurred in Spain will be at least 200,000 euros.On the other hand, it is established that the deduction will be 30% of the base of the deduction, when the producer is in charge of the execution of visual effects services, and the expenses made in Spain are less than 1 million euros.

    The amount of this deduction may not exceed the amount laid down in Commission Regulation (EU) 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.

  • With effect for investments made in tax periods ending between 2 April 2020 and 30 June 2021, a new wording is introduced in the sixteenth additional provision of Law 27/2014 of 27 November on Corporation Tax in order to adapt the freedom to depreciate introduced by the fourth final provision of Royal Decree Law 23/2020, to the temporary national framework on aid measures to support the economy in the context of the current outbreak of COVID-19.Thus, the incentive will apply to investments in new tangible fixed assets made and brought into operation in the tax periods ending between 2 April 2020 and 30 June 2021.The increase in the deduction for process innovation in the value chain of the automotive industry in corporation tax is also in line with the provisions of Commission Regulation (EU) 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, thus introducing the differences required by that Community rule in the design of the incentive according to whether it affects small and medium-sized enterprises or enterprises that do not have such status.
  • The temporary references contained in section 11 of Article 27 and section 2 of Article 29 of Law 19/1994, of 6 July, modifying the Economic and Fiscal Regime of the Canary Islands, are modified, indicating 31 December 2021 as the temporary limit.
Real Decreto-ley 34/2020, de 17 de noviembre,

de medidas urgentes de apoyo a la solvencia empresarial y al sector energético, y en materia tributaria.