-All reductions made by all the persons who pay premiums in favour of the same taxpayer, including those of the taxpayer himself, may not exceed 2,000 euros per year (up to now 8,000 euros).-In the case of taxpayers whose spouse does not obtain net income from work or economic activities, this is less than 8.000 per annum, they may reduce the taxable base by the contributions made to social welfare systems in which the spouse is a participant, a member or a holder, with a maximum limit of 1,000 euros (so far 2,500 euros per annum).– As a joint maximum limit for reductions, the lower of the following amounts shall apply: 30% of the sum of the net income from work and economic activities received individually in the financial year and Euros 2,000 (so far Euros 8,000 euros per year).
1.- Limitation of financial expenses. To determine the operating profit for the purposes of quantifying the limit on financial expenses, only dividends from holdings in which the percentage of direct or indirect participation is at least 5% shall be added as financial income. In other words, financial income from shareholdings whose acquisition value is greater than EUR 20,000,000 but in which the percentage of ownership is less than 5% is no longer added to the operating profit.
2.- Exemption of dividends and income derived from the transfer of securities representing the equity of entities resident and non-resident in Spanish territory. Dividends and income derived from the transfer of securities are only exempt when the percentage of participation in the capital or in the equity of the entity is at least 5%. In other words, as with the limitation on financial expenses, it does not apply if the acquisition value of the holding is greater than 20,000,000 euros but the holding is less than 5%.
– However, a transitional regime has been established, so that holdings acquired in tax periods commencing prior to 1 January 2021, with an acquisition value of more than EUR 20,000,000 but less than 5% of the holding, may be exempted, provided that they meet the remaining requirements, for tax periods commencing within the years 2021, 2022, 2023, 2024 and 2025.– The non-deductibility of negative income arising from the transfer of a holding in an entity shall only apply when the percentage of ownership in the capital or equity of the entity is at least 5%, but not if the acquisition price of the holding exceeds EUR 20,000,000 and this percentage is not reached.– A transitional regime is also regulated, so that negative income arising from the transfer of holdings with an acquisition value of more than EUR 20,000,000, but less than 5%, acquired in the tax periods starting before 2021, cannot be included for tax periods starting within the years 2021, 2022, 2023, 2024 and 2025.
-Dividends or shares in profits are received by an entity whose net turnover for the immediately preceding tax period is less than Euros 40,000,000 and which, in addition, is not patrimonial, does not form part of a mercantile group before 2021 and does not have a stake in another entity before that year equal to or greater than 5%.-Dividends or shares in profits come from an entity incorporated after 1 January 2021 in which it holds, directly and from the time of incorporation, all the capital or own funds.-Dividends or shares in profits are received in the tax periods ending in the three years immediately following the year in which the entity distributing them was incorporated.
As with the exemption, a transitional regime is established to continue applying the deduction, for dividends from holdings with an acquisition value of more than Euros 20,000,000 acquired in the tax periods starting before 2021, during the tax periods starting within the years 2021, 2022, 2023, 2024 and 2025.
This deduction, together with the deduction to avoid legal double taxation, may not exceed the full amount that would have been payable in Spain on this income if it had been obtained on Spanish territory. In order to calculate this tax, dividends or shares in profits will be reduced by 5% as management costs of the shares.
4.- Elimination of consolidation groups. The 5% of this income on participations and dividends as management expenses referring to these participations will not be subject to elimination.
*A rate of tax on insurance premiums is set at 8% as opposed to the current rate of 6%. Art. 73.