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Practical Income Manual 2020.

Application in the Canary Islands of the deduction of article 38 LIS

Regulations: Art. 94 bis of Law 20/1991, of June 7, modifying the fiscal aspects of the Fiscal Economic Regime of the Canary Islands

Regarding the deduction for workers with disabilities in article 38 of the LIS, its application in the Canary Islands is a consequence of article 94 bis of Law 20/1991, of June 7, modifying the tax aspects of the Fiscal Economic Regime. of the Canary Islands added, with effect from November 7, 2018, by article Two of Law 8/2018, of November 5, which modifies Law 19/1994, of July 6, modifying the Economic Regime and Prosecutor of the Canary Islands (BOE of 6).

Said article 94 bis of Law 20/1991 establishes that entities that hire a worker to carry out their activity in the Canary Islands will have the right to enjoy the tax benefits that are established by the tax regulations for job creation in accordance with the requirements therein. are established, increasing them by 30 percent.

a. Deduction amount

The deductible amounts provided for in article 38 of the LIS are increased by 30 percent.

Therefore:

Investment modalitiesDeductible amounts
Deduction from article 38 LIS €11,700 For each person/year increase in the average workforce with disabilities ≥33% and <65%
€15,600 For each person/year increase in the average workforce with disabilities ≥ 65%

b. Requirements and conditions for the application of the deduction

Regarding the requirements and conditions determining the application of this deduction of article 38 of the LIS, your comment is contained in this Chapter in the section relating to the table of General regime of deductions for incentives and incentives for business investment from the Corporate Tax Law