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Know How: 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 25 rulings · 2014–2022

Current position

The reduction under Article 23.1 of the LIS (Corporate Income Tax Law) applies exclusively to the transfer of specific intangible assets such as patents, utility models, protected designs or models, or registered advanced software. Know-how, understood as technical, industrial, or commercial knowledge, is not part of the list of assets that allow access to this tax incentive. Therefore, the transfer of know-how is not subject to the reduction.

The DGT's position has undergone a radical shift. Initially, the Administration allowed the application of the reduction to know-how as long as it was distinguished from the provision of services. However, since 2020, the DGT has moved to expressly exclude know-how from the list of intangible assets eligible for the reduction under Article 23 of the LIS.

Turning points

  1. V0510-15

    Establishes that the transfer of know-how allows for the reduction under Article 23.1 of the LIS if the consideration is identified and there is no obligation to achieve a specific result.

  2. V0273-20

    Changes the criterion by stating that know-how is not included in the list of intangible assets that entitle one to the tax incentive.

Analysis based on 25 of 25 rulings with a stated position. Updated 24 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
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
V3909-15 4 Dec 2015

Intangible asset transfer tax reduction inapplicable to service provision contracts

SG de Impuestos sobre las Personas Jurídicas
reducción por cesión de intangiblesknow-howasistencia técnicaprestación de serviciosderecho de uso LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 23LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 31.1.b
Affects CompanyExpat · Non-residentIndividual
V2805-15 28 Sept 2015

Value swaps, splits and share contributions may qualify for LIS special regime

SG de Impuestos sobre las Personas Jurídicas
canje de valoresescisión totalaportación no dinerariaknow-howrégimen especial LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 23LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 76
Affects CompanyExpat · Non-residentIndividual

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