Doctrine by topic · DGT Observatory

Intangible Assets: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Doctrinal reversal High confidence 35 rulings · 2014–2022

Current position

The reduction under Article 23 of the LIS (Corporate Income Tax Law) applies exclusively to the transfer of specific intangible assets such as patents, utility models, designs, protected models, or registered advanced software. Know-how, understood as technical, industrial, or commercial knowledge, is not considered an asset included in said provision. Therefore, the transfer of know-how does not allow for the tax incentive.

The DGT's position has undergone a shift regarding the treatment of know-how. While in 2015 the reduction for the transfer of know-how in franchise contracts was admitted, the more recent doctrine of 2022 expressly excludes this concept as it is not listed in Article 23 of the LIS.

Turning points

  1. V0510-15

    Established that the transfer of know-how in franchise contracts allowed for the reduction if the consideration was identified.

  2. V0837-22

    Reverses the previous position by determining that know-how is not part of the listed assets and cannot benefit from the incentive.

Analysis based on 35 of 35 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V3286-20 5 Nov 2020

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

SG de Impuestos sobre las Personas Jurídicas
reducción de base imponibleactivos intangiblesknow-howcesión de derechosperiodo impositivo LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 23LIS — Ley 27/2014 del Impuesto sobre Sociedades art. DT 20ª
Affects CompanyExpat · Non-residentIndividual
V1883-18 26 Jun 2018

Income from patent licensing may qualify for the Article 23 CIT reduction

SG de Impuestos sobre las Personas Jurídicas
reducción de rentasactivos intangiblescesión de patentesbase imponibleprincipio de devengo LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V4234-16 3 Oct 2016

Industrial designs may qualify for tax base reduction upon transfer of intangibles

SG de Impuestos sobre las Personas Jurídicas
reducción en la base imponibleactivos intangiblesdiseños industrialescesión de derechostransmisión de activos LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 23LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 12.2
Affects CompanyExpat · Non-residentIndividual
V1788-16 22 Apr 2016

40% tax base reduction for know-how transfer applicable following a demerger

SG de Impuestos sobre las Personas Jurídicas
know-howreducción de rentasescisión parcialsubrogaciónactivos intangibles LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 23LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 42
Affects CompanyExpat · Non-residentIndividual
V2895-15 6 Oct 2015

Unactivated R&D expenses may be included in the creation cost of an intangible asset

SG de Impuestos sobre las Personas Jurídicas
activos intangiblescoste de creacióngastos de investigacióngastos de desarrolloreducción de rentas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 23.1.a
Affects CompanyExpat · Non-residentIndividual

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