Application in the Canary Islands of the deduction of article 38 LIS
Regulations: Art. 94 bis Law 20/1991, of June 7, modifying the fiscal aspects of the Economic Fiscal Regime of the Canary Islands
As regards the deduction for disabled workers 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 fiscal aspects of the Economic Fiscal 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 and Fiscal Regime of the Canary Islands ( BOE of July 6).
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 for job creation established by tax regulations in accordance with the requirements established therein, increasing them by 30 percent.
a. Amount of deduction
The deductible amounts provided for in article 38 of the LIS are increased by 30 percent .
Therefore:
| Types of investments | Deductible amounts |
|---|---|
| Deduction of article 38 LIS | €11,700 For each person/year of increase in the average number of disabled employees ≥ 33% and < 65% |
| €15,600 For each person/year of increase in the average number of employees with a disability ≥ 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, its commentary is contained in this Chapter in the section relating to General regime of deductions for incentives and stimuli to business investment of the Corporate Tax Law.