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New regulations for 2020

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Main tax measures in the area of Corporate Tax included in Royal Decree-Law 34/2020, of November 17, on urgent measures to support business solvency and the energy sector, and in tax matters (BOE, November 28)

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.

CORPORATION TAX

  • With effect for tax periods beginning on or after January 1, 2020, section 2 of article 36 of Law 27/2014, of November 27, on Corporate Tax, is modified, 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. In this sense, the production phase is incorporated for the application of the incentive in animation productions and the application of said incentive to the execution in Spain of the part of international productions related to visual effects is maintained. Establishing that in the case of animation productions, the expenses incurred in Spanish territory will be at least 200,000 euros. It is established, on the other hand, that the deduction will be 30 percent of the deduction base, 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 de minimis aid.

  • With effects for investments made in the tax periods ending between April 2, 2020 and June 30, 2021, a new wording is introduced in the sixteenth Additional Provision in Law 27/2014, of November 27, of the Corporate Tax with the purpose of adapting the freedom of amortization introduced by the fourth Final Provision of Royal Decree-Law 23/2020, to the Temporary National Framework relating to aid measures intended to support the economy in the context of the current COVID-19 outbreak. Thus, the incentive will be applied to investments in new items of tangible fixed assets made and that come into operation in the tax periods ending between April 2, 2020 and June 30, 2021 . Likewise, the increase in the deduction for innovation in processes in the value chain of the automobile industry in Corporate Tax is adapted to the provisions of Regulation (EU) No. 651/2014 of the Commission, of June 17, 2014, by which certain categories of aid are declared compatible with the internal market in application of articles 107 and 108 of the Treaty, thus introducing the differences required by the aforementioned community standard in the design of the incentive according to whether it affects small and medium-sized companies or companies that do not have such consideration.
  • The temporary references contained in section 11 of article 27 and section 2 of article 29 of Law 19/1994, of July 6, modifying the Economic Regime are modified and Fiscal of the Canary Islands , with December 31, 2021 as the time limit.