e) Anticipated investments of future endowments

Regulations: Art. 27.11 and transitional provision eighth.2 Law 19/1994, of July 6, modifying 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, of the Economic and Fiscal Regime of the Canary Islands, taxpayers can carry out advance investments, which will be considered as materialization of the reserve for investments that are endowment charged to profits obtained in the tax period in which the investment is made or in the three subsequent periods, provided that the remaining requirements required therein are met. 

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

>Law 2/2022, of February 24, on financial measures for social and economic support and compliance with the execution of sentences (which tacitly replaces Royal Decree-Law 39/2020, of December 29), introduces a new eighth transitional provision in Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, whose section 2 extends by one year (from three to four years) the term for advance investments made in 2017.

Regarding this extension, please also note that as a consequence of the health crisis situation caused by Covid-19, the deadlines to materialize the investment and provide the reserve materialized in advance were suspended, from March 14 to May 30, 2020.

The aforementioned provisions must be made from profits obtained until December 31, 2023 .

The aforementioned materialization and its financing system will be communicated together with the Personal Income Tax declaration for the tax period in which the anticipated investments are made.