Article 39.1 LIS (Joint limit)

Regulations: Art. 69.2 Personal Income Tax Law and 39 LIS

The deduction limits set out in article 39.1 of the LIS apply in the IRPF on the quota resulting from reducing the sum of the full, state and autonomous quotas (boxes [0545] and [0546] of the declaration), in the total amount of the deductions for investment in habitual housing (in the case of taxpayers to whom the transitional regime of this deduction is applicable), for investment in new or recently created companies, provided for in article 68.1 of the Law of IRPF , and for actions for the protection and dissemination of the Spanish Historical Heritage and the World Heritage (∑ boxes [0547] and [0548] ; less ∑ boxes [0549]; [0550] and [0551], respectively).

In relation to these limits, article 39.1 of the LIS establishes that the amount of the deductions to encourage the performance of certain activities (excluding the deduction for expenses related to the execution of a foreign production of feature films or audiovisual works referred to in article 36.2 of the LIS which is not subject to these limits), applied in the tax period, may not jointly exceed 25 percent of the quota defined above.

However, this limit is raised to when the amount of deductions for research and development and technological innovation activities provided for in article of the LIS which corresponds to expenses and investments made in the tax period itself, exceeds 10% of the previously defined quota (that is, the total gross personal income tax quota, reduced by deductions for the protection and dissemination of Spanish Historical Heritage and World Heritage and for investments in primary residence and in new or recently created companies).

When there are outstanding balances of deductions from previous years, the applicable limit (25% or 50%) will be applied jointly to the deductions for the 2020 financial year and to the outstanding balances from previous years .