9.9.2. Completion

The period to materialize the reserve for investments in the Canary Islands is three years, except in the case of endowments with profits obtained in tax periods beginning in 2016, which is extended by one more year, by virtue of the provisions of article 27.4 of the Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, wording given by Royal Decree-Law 15/2014, of December 19, modifying the Economic and Fiscal Regime of the Canary Islands.

This period must be counted from the date on which the provision (accounting) of the reserve occurs, which in the case of natural persons can be:

At the close of the accounting year on December 31 of each year.
In the year following that of obtaining the benefit.

In accordance with what has been explained for completion, taxpayers covered by the Reserve for Investments in the Canary Islands regime will enter, through a data capture window, the amount of the provisions corresponding to each of the years in the following boxes:

In boxes [0733], [0735], [0738], [0742] and [0746] the amount of the provisions corresponding to income obtained in the Canary Islands from 2016 to 2020 that have been allocated to the Reserve for Investments in Canary Islands (RIC).
Boxes [0734], [0789], [0792], [0794] and [0802] indicate the year of the provision, which may be at the end of the year in which the net operating income was obtained or in the following year. .
Boxes [0777], [0736], [0739], [0743] and [0747] will indicate the amount of the materializations carried out with charge to the previously declared allocation in the investments provided for in letters A, B, B bis and D 1 of article 27.4 of Law 19/1994.
Boxes [[0778], 0737], [0740], [0744], [0748] and [0751] will indicate the amount of the materializations carried out with charge to the provision previously declared in the investments provided for in letters C and D 2 to 6 of article 27.4 of Law 19/1994.
Boxes [0829], [0790], [0741], [0745] and [0749].
The amount of each of the previously declared provisions that is pending materialization as of December 31 will be indicated.

You must indicate the anticipated investments in the data capture window, distinguishing:

Box [0750].
The amount of investments made in 2020 will be indicated for the early materialization of future provisions in those provided for in article 27.4. A, B, B bis and D 1, Law 19/1994.
Box [0751].
The amount of investments made in 2020 will be indicated for the early materialization of future provisions in those provided for in article 27.4. C and D 2 to 6, Law 19/1994.

Investments in which the provisions made can be materialized

The contributions to the reserve may materialize in any of the following investments when the requirements of article 27.4 of Law 19/1994 of the Canary Islands Tax Regime are met:

Initial investments consisting of the acquisition of new assets of tangible or intangible fixed assets as a result of:
- The creation or expansion of an establishment.
- The diversification of the activity of an establishment for the production of new products.
- The substantial transformation in the production process of an establishment.
- Investments in land, built or not, provided that they have not previously benefited from this regime and are affected:
  1. To the promotion of protected housing and intended for rental by the promoting company.
  2. To the development of industrial activities included in divisions 1 to 4 of the first section of the rates of the Tax on Economic Activities.
  3. To commercial areas and tourist activities in the terms established in article 27.4 of Law 19/1994 of the Economic and Fiscal Regime of the Canary Islands.
Creation of jobs directly related to the investments provided for in letter A, which occurs within a period of six months from the date of entry into operation of said investment and meets certain requirements for increasing staff The Creation of jobs carried out in the tax period that cannot be considered as an initial investment because it does not meet any of the requirements established in letter B of article 27, with the limit of 50 percent of the contributions to the Reserve made by the taxpayer in the tax period.
Acquisition of assets of tangible or intangible fixed assets that cannot be considered an initial investment because they do not meet any of the conditions established in letter A above, investment in assets that contribute to the improvement and protection of the environment in the Canary Islands. , as well as those research and development expenses that are determined by regulation.
Subscription of:
1. Shares or participations in the capital issued by companies as a result of their constitution or capital increase that carry out their activity in the archipelago, provided that the requirements established in article 27.4 of Law 19/1994 are met.
2. Shares or participations in the capital issued by entities of the Canary Islands Special Zone as a consequence of their constitution or capital increase, provided that the requirements and conditions established in number 1 above and those provided for in Chapter I of Title V of the Law 19/1994.
  
  Additionally, the following conditions must be met:
  
  The amount of the issue or capital increase will be greater than 750,000 euros.
  
  At least 10% of the issue or capital increase will be subscribed by some person or entity that does not materialize amounts destined for the reserve for investments in the Canary Islands and will be disbursed immediately after the granting of the deed of incorporation or capital increase. capital.
3. Any financial instrument issued by financial entities as long as the funds raised for the purpose of materializing the Reserve are intended for financing private projects in the Canary Islands, whose investments are suitable in accordance with the provisions of this article, as long as the issues are supervised by the Government. of the Canary Islands, and have a binding report from the State Tax Administration Agency.
4. Public debt securities of the Autonomous Community of the Canary Islands, of the Canary Islands Local Corporations or of their public companies or autonomous bodies, provided that it is intended to finance investments in infrastructure and equipment or improvement and protection of the environment in the territory. Canary Islands, with a limit of fifty percent of the provisions made in each financial year.
5. Securities issued by public bodies that proceed to the construction or exploitation of infrastructure or equipment of public interest for the public administrations in the Canary Islands, when the financing obtained with said issue is exclusively allocated to such construction or exploitation, with a limit of fifty percent of the allocations made in each year.
6. Securities issued by entities that proceed with the construction or exploitation of infrastructure or equipment of public interest for the public administrations in the Canary Islands, when the financing obtained with said issue is destined exclusively for such construction or exploitation, with a limit of fifty percent. percent of the allocations made in each financial year and in the terms provided by regulation.