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V4794-16 10 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · cesión de intangibles

Article 23 LIS reduction inapplicable to software licensing involving inseparable ancillary services

A company queried whether income from the perpetual licensing of AI software for biomedical research could qualify for the intangible asset transfer reduction. The DGT ruled that this is not possible because the transfer does not involve the underlying program information, but rather an element with inseparable ancillary services.

The question raised

1. Whether the income derived from the perpetual assignment of the intangible asset may qualify for the reduction provided for in Article 23 of the LIS.

The DGT's ruling

The reduction provided for in Article 23 of the LIS does not apply if the income does not derive from the autonomous assignment of the base ideas and principles of the software (logic, algorithms, or techniques). In this case, as it concerns software that guides the user through scientific procedures, the assignment entails ancillary services that are inseparable from the main element. Therefore, it is not considered an assignment of know-how that meets the requirements for the tax incentive.

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