• Ambit Assessor
  • Ambit Assessor
  • Ambit Assessor
  • Ambit Assessor



Fiscal, Covid Measures, 29/06/20

New tax measures in Corporate Income Tax to revive economic activity.


 

The Royal Decree-Law 23/2020, of June 23, approving measures in the field of energy and other areas for economic reactivation, was published in the Official State Gazette (BOE) on June 24, 2020. This decree introduces two measures in the Corporate Income Tax: an increase in the deduction for technological innovation activities in production processes in the value chain of the automotive industry and freedom of depreciation in investments made in the value chain of electric, sustainable or connected mobility.

We inform you that in the Official State Gazette (BOE) of June 24, 2020 (and with effect from June 25) Royal Decree-Law 23/2020, of June 23, has been published, approving measures in the field of energy and in other areas for economic reactivation.

As regards the tax field and, specifically, Corporate Income Tax, two measures are introduced: an increase in the deduction for technological innovation activities in production processes in the automotive industry value chain and freedom of depreciation in investments made in the electric, sustainable or connected mobility value chain.

 

  1. Deduction in Corporate Income Tax for technological innovation activities in production processes in the automotive industry value chain

With effect for tax periods beginning in 2020 and 2021 and with the aim of promoting investment in process innovation in the value chain of the automotive industry in Spain, the percentage of deduction for technological innovation is increased from 12 to 25%on the expenses made in carrying out these activities when their result is a technological advance in obtaining new production processes in the value chain of the automotive industry or substantial improvements to existing ones.

It is established as a necessary requirement for the application of this deduction that the entity has obtained a reasoned report on the qualification of the activity as a technological innovation whose result is a technological advance in obtaining new production processes in the value chain of the automotive industry or substantial improvements of those already existing.

 

  1. Freedom of amortization on investments made in the electric, sustainable or connected mobility value chain
Secondly, for investments made in 2020, the possibility is established to freely amortize investments in new elements of tangible fixed assets that involve the sensorization and monitoring of the production chain, as well as the implementation of manufacturing systems based on modular platforms or that reduce the environmental impact, related to the automotive industrial sector - small companies can choose between this incentive and the freedom of amortization with job creation - with the following requirements:
  • Made available to the taxpayer in 2020
  • In the 24 months following the start of the tax period in which they become operational, the average workforce must be maintained compared to that of 2019
  • This does not apply to real estate
  • The maximum investment amount to which the incentive applies is 500,000 euros
  • The freedom of depreciation can be applied from the date the elements become operational, which must occur no later than the end of 2021
  • A reasoned report issued by the Ministry of Industry, Tourism and Trade is required. This report must be requested within one month of the item being made available and must be issued within two months of the request. If the report was requested on time but is not yet available when the tax return is filed, the incentive may still be applied. If the incentive is ultimately denied, the corresponding tax plus late payment interest must be paid in the tax year in which the report is issued
  • If the staff maintenance requirement is not met, it will be rectified in the year of non-compliance, and the corresponding amount amortized in excess plus late payment interest must be added to the quota

 

 

You can contact this professional office for any questions or clarifications you may have.

Warm regards,

Do you have any questions about this topic?

Our team of expert advisors will help you resolve any issues related to our services.

Contact us now

MGI Àmbit

Barcelona
Rbla Catalunya, 98 5º 2ª
08008. Barcelona

Olesa de Montserrat
Mallorca, 11-13
08640. Olesa de Montserrat

T +34 933 233 100
ambit@ambitassessor.com

By Cienpies
legal and financial advice logo2

MGI Worldwide is a network of independent audit, tax, accounting and consulting firms. MGI Worldwide does not provide any services and its member firms are not an international partnership. Each member firm is a separate entity and neither MGI Worldwide nor any member firm accepts responsibility for the activities, work, opinions or services of any other member firm. For more information visit www.mgiworld.com/legal.


YouTube Ambit  LinkedIn Ambit  Twitter Ambit