9.8.5. Deduction for income derived from the sale of tangible assets produced in the Canary Islands

Amount of deduction

50% of the portion of the full quota reduced, where applicable, by the amount of the deduction for the Reserve for Investments in the Canary Islands, in the portion that proportionally corresponds to the income derived from the sale of tangible assets produced in the Canary Islands by the beneficiaries of the deduction.

Requirements

To apply the deduction, the following requirements must be met:

• That the tangible goods produced in the Canary Islands derive from the exercise of agricultural, livestock, industrial and fishing activities, provided that, in the latter case, the deep-sea fishing is landed in the Canary Islands ports and is handled or transformed in the archipelago.
• That the taxpayers are domiciled in the Canary Islands. If taxpayers are domiciled in other territories, they must engage in the production of the aforementioned goods in the Canary Islands through a branch or permanent establishment.
• That they determine their returns under a direct estimation system.
• That the net returns eligible for bonuses are positive.

This bonus regulated in article 26 of Law 19/1994 is not applicable to income derived from the sale of tangible goods produced in the Canary Islands, typical of shipbuilding, synthetic fibres, the automobile industry, steel and coal industries.