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Form 200. Corporate Income Tax Declaration 2018

4.2.80 Codes 00403 and 00404 reserve for investments in the Canary Islands (Law 19/1994)

Article 27 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands regulates the tax benefit consisting of the reduction in the tax base of the Corporate Tax of the amounts that, in relation to their establishments located in the Canary Islands, the entities (except those excluded according to the aforementioned article and the twelfth Additional Provision of Law 19/1994) subject to said tax allocate their profits to the reserve for investments in accordance with the provisions of the article itself. 27. The part of the profit obtained in the exercise of the activities of shipbuilding, synthetic fibers, the automobile industry, the steel industry and the coal industry will not be able to benefit from this reduction, so the reduction cannot be applied to that part of the profit. .

Likewise, when applying this reduction, the special conditions provided for in the first to sixth additional provisions of Royal Decree-Law 12/2006, of December 29, modifying the Economic and Fiscal Regime of the Canary Islands, must be taken into account.

The provisions of the single transitional provision of Royal Decree-Law 15/2014 must also be taken into account, which regulates the transitional regime applicable to the provisions of the reserve for investments in the Canary Islands (hereinafter, RIC) made before January 1, 2015, to advance investments of the RIC made before January 1, 2015 and to the consideration as profits not eligible to provide the RIC to income that has benefited from the deduction regime of article 42 of RDLeg . 4/2004.

Finally, it must be taken into account that the application of the benefit of the reserve for investments will be incompatible, for the same assets and expenses, with the deductions to encourage the performance of certain activities regulated in Chapter IV of Title VI of the LIS and with the deduction for investments regulated in article 94 of Law 19/1994.

By means of these keys, the taxpayers who are creditors of this tax benefit will apply the aforementioned reduction to the tax base of the Corporate Tax or, where appropriate, will integrate into the tax base the reductions applied that are inappropriate.

In the key [00404] they will record, as a reduction to the accounting result, the amount of the provisions to the aforementioned reserve in accordance with the limit and other conditions established in the aforementioned article 27 of Law 19/1994. This amount is the corresponding amount in any case to the provisions made with a charge to profits from tax periods beginning within the year 2017, whether they are affected by unanticipated investments or anticipated investments if the latter have been made within the year 2017.

They will be entered in code [00403], as an increase to the accounting result, the amounts allocated to the reserve for investments in the Canary Islands that gave rise to the reduction of the tax base and that, due to the reserve having been disposed of prior to the deadline, maintenance of the investment or for investments other than those admitted, as well as failure to comply with any other of the requirements established in the regulatory regulations, must be integrated into the tax base of the year object of declaration due to the occurrence of any of the above circumstances. cited.

In the case of cooperative societies, the amount reflected in code [00403] or [00404] must be transferred to code [C10] on page 22 of form 200, with a positive or negative sign, respectively, and if there is content of both keys, the difference between both will be transferred, indicating a positive or negative sign, depending on whether the key [00403] is greater or less (in absolute terms) than the key [00404].

In any case, entities covered by the special regime of the reserve for investments in the Canary Islands in any tax period beginning within the years 2016 to 2018 inclusive, must complete the information requested in the corresponding section on page 22 of form 200, as indicated below:

  • Key [00089] will record the amounts by which the tax base for the 2014 financial year was reduced by the Reserve for investments in the Canary Islands (accounting for in the following year with a charge to the profits of the 2014 financial year).

  • In the code [00094], of those amounts by which the tax base for the 2014 financial year was reduced (accounting provision in the following financial year), the amount of those that have materialized, in the tax period object of declaration, must be entered in some of the investments provided for in letters A, B and D 1 of article 27.4 of Law 19/1994.

  • In the key [00095], of those amounts in which the tax base for the 2014 financial year was reduced (accounting provision in the following financial year), the amount of those that have materialized, in the tax period object of declaration, must be entered in some of the investments provided for in letters C and D 2 to 6, of article 27.4 of Law 19/1994.

  • Code [00097] will record the amounts by which the tax base for fiscal year 2015 was reduced by the Reserve for Investments in the Canary Islands (accounted for in the following fiscal year with a charge to the profits of fiscal year 2015).

  • In the key [00098], of those amounts in which the tax base corresponding to the 2015 financial year was reduced (accounted for in the following financial year), the amount in which they have materialized, in the tax period object of declaration, must be entered. in any of the investments provided for in letters A, B and D 1 of article 27.4 of Law 19/1994.

  • In the key [00047], of those amounts in which the tax base corresponding to the 2015 financial year was reduced (accounting for in the following financial year), the amount of those that have materialized, in the tax period object of declaration, must be entered, in any of the investments provided for in letters C and D 2 to 6 of article 27 of Law 19/1994.

  • In the code [00048], of the amounts that reduced the tax base corresponding to the 2015 financial year (accounting provision in the following financial year), the amount of those that have not yet materialized in any of the investments referred to in the letters A, B, C and D of article 27.4 of Law 19/1994.

  • In key [00524], the amounts by which the tax base for fiscal year 2016 was reduced by the Investment Reserve in the Canary Islands (accounted for in the following fiscal year with a charge to the profits of fiscal year 2016) will be recorded.

  • In the code [00525], of those amounts in which the tax base corresponding to the 2016 financial year was reduced (accounting for in the following financial year), the amount of those that have materialized, in the tax period object of declaration, must be entered in any of the investments provided for in letters A, B, B bis and D 1 of article 27.4 of Law 19/1994.

  • In the key [00526], of those amounts in which the tax base corresponding to the 2016 financial year was reduced (accounting for in the following financial year), the amount of those that have materialized, in the tax period object of declaration, must be entered in any of the investments provided for in letters C and D 2 to 6 of article 27.4 of Law 19/1994.

  • In the key [00527], of the amounts that reduced the tax base corresponding to the 2016 financial year (accounting provision in the following financial year), the amount of those that have not yet materialized, in the tax period object of declaration, must be entered in some of the investments referred to in letters A, B, B bis, C and D of article 27.4 of Law 19/1994.

  • In the key [00922], the amounts by which the tax base corresponding to the 2017 financial year was reduced by the Investment Reserve in the Canary Islands (accounting provisioned in the following year with a charge to the profits of the 2017 financial year) will be recorded.

  • In the code [00923], of those amounts in which the tax base corresponding to the 2017 financial year was reduced (accounted for in the following financial year), the amount of those that have materialized, in the tax period object of declaration, must be entered in any of the investments provided for in letters A, B, B bis and D 1 of article 27.4 of Law 19/1994.

  • In the key [00924], of those amounts in which the tax base corresponding to the 2017 financial year was reduced (accounted for in the following financial year), the amount of those that have materialized, in the tax period object of declaration, must be entered in any of the investments provided for in letters C and D 2 to 6 of article 27.4 of Law 19/1994.

  • In the key [00925], of the amounts that reduced the tax base corresponding to the 2017 financial year (accounting provision in the following financial year), the amount of those that have not yet materialized, in the tax period object of declaration, must be entered in some of the investments referred to in letters A, B, B bis, C and D of article 27.4 of Law 19/1994.

  • In key [00927], the amounts by which the tax base corresponding to the year 2018 is reduced by the Investment Reserve in the Canary Islands will be recorded (accounted for in the following year with a charge to the profits of the year 2018).

  • In the key [00928], of those amounts by which the tax base corresponding to the 2018 financial year is reduced (accounting for in the following financial year), the amount that has materialized, in the tax period object of declaration, must be entered in any of the investments provided for in letters A, B, B bis and D 1 of article 27.4 of Law 19/1994.

  • In the code [00938], of those amounts by which the tax base corresponding to the 2018 financial year is reduced (accounting for in the following financial year), the amount of those that have materialized, in the tax period object of declaration, must be entered in any of the investments provided for in letters C and D 2 to 6 of article 27.4 of Law 19/1994.

  • In the key [00996], of the amounts that reduce the tax base corresponding to the 2018 fiscal year (accounting provision in the following fiscal year), the amount of those that have not yet materialized, in the tax period object of declaration, must be entered in some of the investments referred to in letters A, B, B bis, C and D of article 27.4 of Law 19/1994.

  • In the key [00020], of the anticipated investments, made in fiscal year 2018, of future provisions (even in the event that the latter are charged to the profits of fiscal year 2018) to the Reserve for investments in the Canary Islands, will be entered the amount that has been made in any of those referred to in letters A, B, B bis and D 1 of article 27.4 of Law 19/1994.

  • In the key [00021], of the anticipated investments, made in fiscal year 2018, of future provisions (even in the event that the latter are charged to the profits of fiscal year 2018) to the Reserve for investments in the Canary Islands, will be entered the amount that has been made in any of those referred to in letters C and D, 2 to 6, of article 27.4 of Law 19/1994.

Note:

Corporate Tax taxpayers who make the corresponding reduction to the reserve for investments in the Canary Islands will be required to present, within the period established for the presentation of the Corporate Tax declaration, a new informative declaration approved by Order HAP /296/2016, of March 2, which approves model 282, «Annual informative declaration of aid received within the framework of the Economic and Fiscal Regime of the Canary Islands and other state aid, derived of the application of European Union Law.