Example: Deduction for investment in new elements of tangible assets or real estate investments used for economic activities
Mr. PHV is the owner of an economic activity whose net income is determined by the direct estimation method, normal mode.
In 2024, it met the requirements to be considered a small-sized entity and obtained net income from its activities amounting to €45,000. The general taxable base for the year corresponds to these incomes of €43,200 and the sum of its full state and regional tax contributions of €10,673.
On September 5, 2024, he uses the profits obtained during the fiscal year to purchase new machinery for his company for €25,000, which is delivered to him in November of that year.
Determine the amount of the investment deduction.
Solution:
Net income from economic activities for the year 2024: 45,000
Amount invested in 2024(1) = 25,000
Deduction base (invested amount with the limit of 43,200) (2) = 25,000
Deduction amount: (25,000 x 5%) (3) = 1,250
Maximum amount limit (sum of your full state and regional quota) = 10,673
Notes to the example:
(1) The amount of net income from economic activities obtained in 2024 that is invested in new taxable items will be recorded in box [0833] of Annex A.5 of the declaration. (Back)
(2) It is the amount entitled to deduction with the limit of the positive general taxable base of 2024 that corresponds to such income and will be recorded in box [0834] of Annex A.5 of the declaration. (Back)
(3) The amount of the deduction does not exceed the sum of the full state and regional quota for the year 2024, so in this case it will be entered in full in box [0835] of Annex A.5 of the declaration. (Back)
Note: In Annex A.6 of the declaration, the amount of net income from economic activities obtained in 2023 that is invested in 2024 in new taxable items shall be entered in box [0830] and the amount entitled to deduction and the amount of the deduction shall be entered in boxes [0831] and [0832] respectively. Likewise, when it concerns returns obtained in 2024 that are invested in that same year in new taxable items, their amount will be recorded in box [0833] and in boxes [0834] and [0835] , respectively, the amount entitled to deduction and the amount of the deduction.