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Reduction of Income: 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 20 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, protected designs and models, certificates for medicines or phytosanitary products, and registered advanced software. Know-how, understood as technical, industrial, or commercial knowledge, is not part of the list of assets that allow for this tax incentive.

The DGT's position has undergone a total reversal regarding the treatment of know-how. Initially, the administration allowed the reduction for the transfer of industrial or scientific experiences (know-how), but since 2020, it establishes that this concept is not included in the list of assets under Article 23.

Turning points

  1. V1368-15

    The DGT considered that the transfer of information relating to industrial, commercial, or scientific experiences (know-how) fell under Article 23 of the LIS.

  2. V0273-20

    It is established that know-how is not included in the list of intangible assets that entitle one to the tax incentive, limiting it to patents, models, certificates, and advanced software.

Analysis based on 20 of 20 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

20
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
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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