b) Requirements for the application of the deduction

To apply this deduction, the following requirements must be met:

• Taxpayers in direct estimation

  Regulations: number 13 of the seventieth Additional Provision. Four Law 31/2022, of December 23, on the General State Budgets for the year 2023

  The taxpayer is required to determine the net returns from his economic activity according to the direct estimation method.

• Separate accounting of the allocation for the investment reserve and information that must be included in the annual accounts or in the investment property record book

  Regulations: numbers 3 and 12 of the seventieth Additional Provision. Four Law 31/2022, of December 23, on the General State Budgets for the year 2023

  It is required that the reserve for investments be accounted for separately , and that it not be available as long as the assets in which it has materialized must remain in the company.

  In addition, taxpayers must record in the report of the annual accounts the information detailed in number 12 of the seventieth Additional Provision . Four Law 31/2022.

  Taxpayers who are not required to keep annual accounts must keep a record book of investment assets, in which said information will appear.

• Establishments located in the Balearic Islands

  The income obtained must come from activities carried out through establishments located in the Balearic Islands.

• Maximum period of 3 years for the materialization of the reservation for investments .

  Regulations: number 4 of the seventieth Additional Provision. Four Law 31/2022, of December 23, on the General State Budgets for the year 2023

  It is required that the amounts allocated to said reserve be materialized within a maximum period of three years, counted from the date of accrual of the tax corresponding to the year in which it was allocated.

• Materialization in specifically established investments.

  Regulations: number 4 of the seventieth Additional Provision. Four Law 31/2022, of December 23, on the General State Budgets for the year 2023.

  It is required that said materialization be made in one of the investments detailed below, in a specific section " Investments where the amounts destined for the RIB " of this Chapter must be materialized.

• Situation and use of the heritage elements in which the investment materializes in the Balearic archipelago

  Regulations: number 5 of the seventieth Additional Provision.Four Law 31/2022, of December 23, on General State Budgets for the year 2023.

  It is required that the assets in which the investment materializes meet the following conditions:

  • are located or received in the Balearic archipelago ,
  • are used in the Balearic archipelago,
  • are affected and necessary for the development of the taxpayer's economic activities, except in the case of those that contribute to the improvement and protection of the Balearic environment.

  To this end, number 5 of section Four of the seventieth Additional Provision of Law 31/2022 determines which elements will be understood to be located and used in the archipelago.

  In accordance with the aforementioned number 5 of section Four of the seventieth Additional Provision of Law 31/2022, the following will be understood to be located and used in the archipelago:

  1. The aircraft that, due to their destination, contribute to improving the connections of the Balearic Islands, in the terms determined by regulation.

  2. Vessels with the Spanish flag and with a base port in the Balearic Islands./li>

  3. The transport and communications networks that connect the Balearic archipelago with the outside, for the section of the same that is within the territory of the Balearic Islands and the part located outside of it that is used to connect the different islands of the Balearic Islands to each other. archipelago./li>

  4. Computer applications and industrial property rights, which are not mere distinctive signs of the taxpayer or their products, and which are to be applied exclusively in production processes or commercial activities that are developed in the Balearic territory, as well as property rights intellectual property that are subject to reproduction and distribution exclusively in the Balearic archipelago./li>

  5. Administrative concessions for the use of public domain assets located in the Balearic Islands./li>

  6. Administrative concessions for the provision of public services that are developed exclusively in the archipelago./li>

  7. Administrative public works concessions for the execution or exploitation of public infrastructure located in the Balearic Islands.

• Investment maintenance

  Regulations: number 8 of the seventieth Additional Provision. Four Law 31/2022, of December 23, on the General State Budgets for the year 2023.

  It is required that the assets in which the investment reserve has materialized be maintained for the following periods:

  1. In the case of patrimonial elements of the tangible or intangible assets referred to in letter A of number 4 of the seventieth Additional Provision. Four of Law 31/2022, as well as the assets acquired by virtue of the provisions of letter C of that same number, must remain in operation in the company of the same taxpayer during:

     • In general: five years at least, without being transferred, leased or assigned to third parties for their use.

     • In the case of land acquisition : ten years minimum

     For the purposes of computing the maintenance period it must be taken into account that materialization will be deemed to have occurred, even in cases of acquisition through financial leasing, at the moment in which the assets come into use. functioning.

     When the useful life of the assets is less than said period , this requirement will not be considered non-compliance when another asset is acquired to replace it at its net book value, in the period of 6 months from its removal from the balance sheet that meets the requirements for the application of the deduction and that remains in operation for the time necessary to complete said period.

     Now , in no case can it be understood that this new acquisition represents the materialization of the amounts destined for the reserve for investments in the Balearic Islands, except for the amount of the same that exceeds the net book value of the asset element that is replaced and that was considered the materialization of the regulated reserve in this section.

     In cases of loss of the asset it must be replaced in the terms provided in the previous paragraph.

  2. When dealing with the values referred to in letter C of number 4 of the seventieth Additional Provision. Four of Law 31/2022, must remain in the taxpayer's assets for five uninterrupted years , without the rights of use or enjoyment associated with them being subject to transfer to third parties.

• Other requirements:

  Regulations: number 8 of the seventieth Additional Provision. Four Law 31/2022, of December 23, on the General State Budgets for the year 2023

  • Taxpayers who engage in the economic activity of leasing or transferring fixed assets to third parties for their use may enjoy the reserve for investments, provided that there is no direct or indirect connection with the tenants or assignees of said assets, in the terms defined in article 18.2 of the LIS , nor are they financial leasing operations.

  • In the case of leasing of real estate , in addition to the conditions provided for in the previous paragraph, those specifically established for these cases in number 8 of the seventieth Additional Provision must be met. Four of Law 31/2022,

    For these purposes, it will be understood that the leasing of real estate is carried out as an economic activity only when the circumstances provided for in article 27.2 of the Personal Income Tax Law occur (that is, when there is a person with a full-time employment contract for the organization of the activity).