e) Anticipated investments of future endowments

Regulations: Art. 27.11 and eighth transitional provision.2 of Law 19/1994, of July 6, amending the Economic and Fiscal Regime of the Canary Islands

In accordance with the provisions of article 27.11 of Law 19/1994, of July 6, on the Economic and Fiscal Regime of the Canary Islands, taxpayers may make advance investments, which will be considered as materialization of the investment reserve that is provided from profits obtained in tax period in which the investment is made or in the three subsequent periods , provided that the remaining requirements demanded in the same are met. 

However, the deadline will be four years (instead of three years) for advance investments made in 2017.

Royal Decree-Law 39/2020, of December 29, on financial measures for social and economic support and compliance with the execution of judgments, introduced a new eighth transitional provision in Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, to extend by one year (from three to four years) the term for advance investments made in 2017.

The aforementioned provisions must be made from profits obtained until December 31, 2021 .

The aforementioned materialization and its financing system will be communicated together with the declaration of IRPF of the tax period in which the advance investments are made.