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Form 100. Personal Income Tax Declaration 2023

Investments in acquisition of fixed assets

The fourth transitional provision of Law 19/1994, of July 6, provides that in the event of suppression of the general investment deduction regime, its future application in the Canary Islands, as long as an equivalent replacement system is not established, will continue to be carried out. in accordance with the regulations in force at the time of deletion.

In accordance with the interpretative criteria established by the Supreme Court in Sentence no. 605/2024, of April 10, relapsed in the contentious-administrative cassation appeal no. 1299/2022, the regulations that must be applied are those contemplated in article 26 of Law 61/1978, of December 27, on Corporate Tax, and in its Regulations, approved by Royal Decree 2631/1982, of October 15 , regulations in force at the time of its suppression, understanding that there is no equivalent replacement regime in the current LIS.

New fixed assets

Taxpayers can deduct from the full fee 25% of the investments they actually make in new fixed assets.

In no case will land be considered new fixed assets.

Taxpayers who dedicate themselves, through economic exploitation, to leasing or transferring fixed assets to third parties for their use may enjoy the investment deduction for new fixed assets, provided they meet the remaining requirements and there is no connection. directly or indirectly, with the lessees or assignees of said assets, nor are they financial leasing operations.

Fixed assets used

Taxpayers can deduct from the full quota 25% of the amount of the investments for the acquisition of the used fixed asset element that had not previously enjoyed this deduction for investments in elements of tangible fixed assets .

Used fixed assets that belong to any of the following categories will qualify for the investment deduction:

  1. Machinery, installations and tools.

  2. Equipment for information processing.

  3. Elements of internal and external transport, excluding vehicles that may be used by people directly or indirectly linked to the company.

To be entitled to this deduction, the acquisition of the used fixed asset element must represent an evident technological improvement for the company, and this circumstance must be proven, in the event of verification or investigation of the taxpayer's tax situation, by justifying that the element object of the deduction will produce or has produced any of the following effects:

  • Reduction in the unit production cost of the good or service.

  • Improvement of the quality of the good or service.

Deduction base

The basis of the deduction will include the entire agreed consideration, excluding interest, indirect state taxes and their surcharges, which will not be computed in it, regardless of their consideration for the purposes of valuing the assets.

Calculation moment of the deduction

Investments in tangible fixed assets that give the right to the investment deduction will be deemed to have been made in the tax period in which they come into operation.

Deductions not applied due to insufficient quota

The amounts not deducted for this concept may be applied, respecting the limits that apply, in the settlements of the tax periods that end in the immediate and subsequent 15 years.