2. Deduction for income derived from the sale of tangible assets produced in the Canary Islands
Regulations: Art. 26 and Eleventh Additional Provision Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands
50 per 100 of the part of the full quota reduced, if applicable, in the amount of the deduction for the Reserve for Investments in the Canary Islands , in the part that proportionally corresponds to the returns derived from the sale of tangible assets produced in the Canary Islands by the beneficiaries of the deduction, without prejudice to the limits established in the community regulations that may affect them.
For these purposes, for the tax periods starting on November 7, 2018 and after the modification made by article 3 of Law 8/2018, of November 5, which modifies Law 19/1994, of 6 July, modifying the Economic and Fiscal Regime of the Canary Islands, the second Additional Provision of Royal Decree-Law 15/2014, of November 19, establishes that with effect from January 1, 2015, the application of this bonus, as well such as tax benefits that are considered regional operating aid (Book II and article 94 of Law 20/1991, Law of the Autonomous Community of the Canary Islands, 4/2014, of June 26, article 27 and Title V of Law 19/1994, and Additional Provision twelfth of Law 43/1995, of December 27), as well as aid for the transport of goods included in the scope of Royal Decree 362/2009, of March 20 and the Order of July 31, 2009 of the Minister of Public Works and Transport of the Government of the Canary Islands, will be subject to the limit of 30 percent of the beneficiary's annual turnover obtained in the Canary Islands.
For the purposes of calculating the income derived from the sale of tangible assets produced in the Canary Islands, it must be taken into account that they will form part of:
- The amounts of aid derived from the specific supply regime, established under article 3.1.a) of Regulation (EU) No. 228/2013 of the European Parliament and of the Council,
The amounts of aid to producers derived from the Community Program to Support Agricultural Productions in the Canary Islands, established under article 3.1.b) of Regulation (EU) No. 228/2013 of the European Parliament and of the Council.
The Paying Body of such funds will certify to the competent tax administration the amount or amounts of aid received by the producer from the support measures provided for in the previous paragraph.
To apply the deduction, the following requirements must be met:
- That the tangible goods produced in the Canary Islands derive from the exercise of agricultural, livestock, industrial and fishing activities, provided that, in the latter case, deep-sea fishing is landed in the Canarian ports and manipulated or transformed in the archipelago.
- That the taxpayers are domiciled in the Canary Islands. If taxpayers are domiciled in other territories, they must dedicate themselves to the production of the aforementioned goods in the Canary Islands through a branch or permanent establishment.
- That they determine their returns in a direct estimation regime.
- That the net returns eligible for bonuses are positive.
Note: Please note that the bonus regulated in article 26 of Law 19/1994 does not apply to income derived from the sale of tangible assets produced in the Canary Islands, typical of shipbuilding activities, synthetic fibers, the automobile industry, steel and coal industry.