A) Amount and limits of the deduction

Regulations: Article 27,15 of Act 19/1994, of 6 July, amending the Canary Islands Economic and Tax Regime.

Amount of the deduction

Taxpayers who carry out economic activities in direct estimation will have the right to a deduction in the full amount for the net operating income that is used for the investment reserve, provided that these come from economic activities carried out through establishments located in the Canary Islands.

The amount of this deduction is variable and is determined by applying the average tax rate (sum of the average general and autonomous tax rates economic, boxes [0534] and [0535 ] of the tax return) to the income provisions operating net for the financial year for the Canary Islands Investment Reserve, as provided for in article 27 of Act 19/1994, of 6 July, amending the Canary Islands Economic and Tax Regime.

See also Royal Decree 1758/2007 of 28 December, approving the implementing regulations of Act 19 / 1994, of 6 July, amending the Canary Islands Economic and Tax Regime, on matters relating to tax incentives in taxation indirect, the Canary Islands and Canary Islands special zone (Official State Gazette of 16 January 2008).

Note: You will not be eligible for the Canary Islands Investment Reserve scheme established in article 27 of Act 19/1994 of 6 July, the profit obtained in the exercise of activities related to shipbuilding, synthetic fibres, automobile industry, steel and the coal industry.

Deduction limits

The amount of this deduction may not exceed 80% of the part of the total payment that corresponds proportionately to the amount of the net operating income from establishments located in the Canary Islands. 100

In joint taxation, the maximum deduction limit is applied individually to each of the spouses, if both have the right to deduction, without resulting from this application being a deduction greater than 80% of the total payment. 100