Skip to main content
Form 100. Personal Income Tax Return 2019

9.8.4.2. Deductions for the 2019 financial year

The investment modalities regulated in articles 35 to 43 of the Corporate Income Tax Law will be included, with the application of increased deduction percentages, in accordance with the provisions of article 94 of Law 20/1991, of June 7, modifying the fiscal aspects of the Economic and Fiscal Regime of the Canary Islands.

Thus, the rates applicable to investments made will be 80% higher than those of the general regime, with a minimum differential of 20 percentage points.

  • For expenses and investments in research and development activities:

    • R&D expenses: 45% deduction

    • R&D expenditure higher than the average of the previous two years: 75.6% deduction

    • Expenses eligible for additional deduction: 37% deduction

    • Investments in elements affected by R&D: 28% deduction

  • For expenses in technological innovation activities: 45% deduction

  • For investments in film productions, audiovisual series and live shows of performing and musical arts (Art. 36 of the LIS):

    • Spanish productions of feature films and audiovisual series 45 or 40% deduction

    • Costs of execution of a foreign production, expenses incurred in Spanish territory: 40% deduction

    • Production and exhibition costs for live performing arts and musical shows: 40% deduction
  • For job creation for workers with disabilities: 11,700 or 15,600 euros per person/year increase.
  • Investments in the acquisition of fixed assets: 25% deduction

Common standards

Joint maximum limit of deductions

In accordance with the provisions of article 94 of Law 20/1991, of June 7, amending the fiscal aspects of the Economic and Fiscal Regime of the Canary Islands (as amended by DA 4 of Law 19/1994, of June 6), the maximum deduction limit will always be 80% higher than that set for the general regime, with a minimum differential of 35 percentage points.

Deductions for investments in West African territories and for advertising and publicity expenses are subject to the limit on investments covered by the general regime.

The limit will be 50% individual (70% joint) in the case of investments in the acquisition of fixed assets.

For research and development and technological innovation activities, investments in film productions, audiovisual series and live performances of performing and musical arts and job creation for workers with disabilities, the limit will be jointly 60 percent of the quota resulting from reducing the sum of the full state and regional quotas by the total amount of the deductions for investment in habitual housing, the deduction for investment in new or recently created companies and for actions for the protection and dissemination of the Spanish Historical Heritage and the World Heritage.

However, this limit is raised to 90% when the amounts of the deductions for scientific research and technological innovation activities that correspond to expenses and investments made in the tax period itself exceed 10% of that same quota. On the islands of La Palma, La Gomera and El Hierro, these limits are raised to 70 and 100 when the Community regulations on state aid allow it and the investments contemplated in Law 2/2016 involved.

These limits, which apply independently of those corresponding to investments under the general regime, are calculated and applied by the program.

Amounts not deducted

The amounts corresponding to the tax period not deducted may be applied in the settlements of the tax periods that conclude in the next 15 years.

However, the amounts corresponding to deductions for scientific research and technological innovation activities may be applied in the liquidations of tax periods ending in the following 18 years.

The calculation of the periods for the application of the deductions provided for in this chapter may be deferred until the first fiscal year in which, within the limitation period, positive results are produced, in the following cases:

  1. In newly created entities.

  2. In entities that offset losses from previous years by effectively providing new resources, without considering the application or capitalization of reserves as such.

Maintaining investment

The assets affected by these deductions must remain in operation for five years, or three if they are movable assets, or during their useful life if this is less.

The deducted amount, in addition to late payment interest, will be paid together with the corresponding fee for the tax period in which non-compliance with this requirement is manifested.

Completion

The calculation of deductions for business investment is not performed by the program.

For the purposes of completion, a data capture window will open for each deduction in which you must provide the amount of the deduction, and if applicable, a lower amount if you do not wish to apply the entire amount in the 2019 declaration.

The program will apply the amount provided as long as it does not exceed the established maximum limits. If the indicated amount exceeds the applicable limit, the latter will apply.