IRC taxpayers who incur investment expenses in the acquisition of tangible fixed assets, non-consumable biological assets and intangible assets, between July 1 and December 31, 2022 (for entities whose tax period starts after January 1, those incurred from the beginning of the seventh month of the period until the end of the twelfth month of the same tax period) benefit from a deduction to the IRC collection, up to a limit of € 5,000,000 of eligible investment expenses, under the following terms:
a) 10% of the eligible expenses incurred in the tax period up to the amount corresponding to the simple arithmetic mean of the eligible investment expenses from the three previous tax periods;
b) 25% of the eligible expenses incurred during the tax period in the part exceeding the limit foreseen in the previous sub-paragraph.
Taxpayers who start business on or after January 1, 2021 can only apply a 10% deduction to eligible expenses.
The annual deduction is limited to 70% of the collection. In case of insufficient collection, the benefit is reportable for five years.
The benefit is not cumulative with any tax benefits of the same nature, regarding the same investment expenses.
For a period of 3 years, starting from the first day of the seventh month of the 2022 tax period, the taxpayer will not be able to distribute profits, nor terminate employment contracts under the collective dismissal or job extinction modalities.
