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Form 200. Corporate Income Tax Declaration 2019

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 RDL 12/2006, of December 29, modifying the Regime must be taken into account. Economic and Fiscal of the Canary Islands.

The provisions of the single transitional provision of RDL 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 of 2015, to the advance investments of the RIC made before January 1, 2015 and to the consideration as profits not suitable for providing the RIC to the income that has benefited from the deduction regime of article 42 of the 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 code [00404] they will record as a decrease in the accounting result, completing, where appropriate, their corresponding breakdown boxes, the amount of the provisions to the aforementioned reserve in accordance with the limit and other conditions established in the aforementioned article 27 of the 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 enter in the key [00403] as an increase to the accounting result, completing, where appropriate, their corresponding breakdown boxes, the amounts allocated to the reserve for investments in the Canary Islands that gave rise to the reduction of the tax base and that Because the reserve has been disposed of prior to the investment maintenance period or for investments other than those admitted, as well as if there is non-compliance with any other of the requirements established in the regulatory regulations, they must be integrated into the tax base of the subject year. declaration due to the occurrence of any of the aforementioned circumstances.

In the case of cooperative societies, the amount reflected in key [00403] or [00404] must be transferred to key [C10] for cooperative results and [E10] for extra-cooperative results on page 22 of form 200, with a positive sign. or negative, respectively, and if both keys have content, 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].

Completion of the table "Special regime of the reserve for investments in the Canary Islands (Law 19/1994)" (page 22 of model 200

Entities that have applied the RIC in any tax period beginning within the years 2015 to 2019 inclusive, must complete this table as indicated below:

  • In column "Amount of provision" the amounts by which the tax base was reduced from the years 2015 to 2019 will be recorded, due to the reserve for investments in the Canary Islands (accounting provision in the subsequent years charged to the profits of said years).

  • In column «Planned investments letters A, B, B bis and D (1) art. 27 Law 19/1994» , of those amounts in which the tax base was reduced from the years 2015 to 2019 (accounting provisions in the following years), the amount of those that have materialized must be entered, in the tax period object of declaration, in any of the investments provided for in letters A, B and D.1o of article 27.4 of Law 19/1994.

  • In column «Planned investments letters C and D (2 to 6) art. 27 Law 19/1994» , of those amounts in which the tax base was reduced from the years 2015 to 2019 (accounting provisions in the following years), the amount of those that have materialized must be entered, in the tax period object of declaration, in any of the investments provided for in letters C and D.2o to 6o of article 27.4 of Law 19/1994.

  • In column "Pending materialization" of the amounts that reduced the tax base corresponding to the years 2016 to 2019 (accounted for in subsequent years), the amount of those still have not materialized in any of the investments referred to in letters A, B, C and D of article 27.4 of Law 19/1994.

  • In row "Advance investments of future allocations to the RIC, made in 2019" , the following must be entered:

    • In code [00020] , of the anticipated investments of future provisions made in fiscal year 2019 (even in the event that the latter are charged to the profits of fiscal year 2019) to the reserve for investments in the Canary Islands, the amount of those made in any of those referred to in letters A, B, B bis and D.1o of article 27.4 of Law 19/1994.

    • In code [00021] , of the anticipated investments of future provisions made in fiscal year 2019 (even in the event that the latter are charged to the profits of fiscal year 2019) to the reserve for investments in the Canary Islands, the amount of those 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 submit, within the period established for the submission of the Corporate Tax declaration, form 282de « Annual informative declaration of aid received within the framework of the Economic and Fiscal Regime of the Canary Islands and other state aid, derived from the application of European Union Law≫, approved by Order HAP/296/2016, of March 2.