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Form 100. Personal Income Tax Return Declaration 2017

9.8.2.2.3. For investment of profits

Deduction percentages:

  1. Taxpayers will be entitled to a deduction of 10 percent of the net income from economic activities of the year that is invested in new items of tangible fixed assets or real estate investments related to economic activities carried out by the taxpayer.

    For these purposes, it will be understood that the net income from economic activities of the tax period is subject to investment when an amount equivalent to the part of the positive general taxable base of the tax period that corresponds to such income is invested, without in any case the same amount being understood to be invested in more than one asset.

  2. The deduction percentage will be 5 percent when the taxpayer has applied the reduction provided for in section 3 of article 32 of the Personal Income Tax Law or in its Additional Provision 27, or the income is obtained in Ceuta or Melilla for which the deduction “for income obtained in Ceuta or Melilla” of article 68.4 of the Law has been applied.

The amount of the deduction may not exceed the sum of the total state and regional tax rate for the tax period in which the net income from economic activities indicated above was obtained.