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V3286-20 5 November 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reducción de base imponible

Reduction for know-how transfer cannot be applied to tax years starting from 2018

The taxpayer inquired whether the reduction for the transfer of know-how carried out in 2017 could be applied to the 2018 and 2019 tax years via the twentieth transitional provision. The DGT ruled that, following the amendment of the law, such income can no longer benefit from the reduction in tax periods commencing on or after 1 January 2018.

The question raised

Assuming that the taxpayer could apply the incentive provided in Article 23 of Law 27/2014, of November 27, on Corporate Income Tax (LIS) for the assignment carried out in 2017, whether it could be interpreted that the twentieth transitional provision of the LIS allows the taxpayer to apply the aforementioned incentive for the 2018 and 2019 fiscal years in relation to the assignment of know-how carried out during those years.

The DGT's ruling

Income derived from the assignment of rights to information relating to industrial, commercial, or scientific experiences (know-how) cannot benefit from the reduction provided in Article 23 of the LIS in tax periods beginning on or after January 1, 2018. Therefore, the reduction is not applicable to the 2018 and 2019 fiscal years, even if the assignment was carried out in 2017.

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