Rebates for income derived from the sale of tangible assets produced in the Canary Islands

Regulation: Article 26 Law 19/1994

Entities that have the right to apply the bonus on profits derived from the sale of tangible assets produced in the Canary Islands by themselves to the full quota, will first mark box [00029] “Canary Islands special regime” on page 1 of model 200.

Next, they must enter the amount of the bonus in box [00563] «Bonus income from sales of tangible goods produced in the Canary Islands (art. 26 Law 19/1994) » on page 14 of model 200, taking into account the following:

• Bonus percentage: 50 percent, without prejudice to the limits established in the community regulations that may affect it.

  For tax periods that begin on or after November 7, 2018, the second Additional Provision of Royal Decree-Law 15/2014, of November 19, establishes that with effect from January 1, 2015, the application of this bonus, as well as the tax benefits that are considered regional operating aid (Book II and article 94 of Law 20/1991, Law of the Autonomous Community of the Canary Islands, 4 /2014, of June 26, article 27 and Title V of Law 19/1994, and Additional Provision twelfth of Law 43/1995, of December 27), as well as aid for the transport of goods included in the scope of the Royal Decree 362/2009, of March 20 and the Order of July 31, 2009 of the Minister of Public Works and Transport of the Government of the Canary Islands, will be subject to the limit of 30 percent of the beneficiary's annual turnover obtained in the Canary Islands.

• Entities that can apply the bonus: Entities domiciled in the Canary Islands or domiciled in other territories that are dedicated to the production of the goods affected by the bonus in the Canary Islands, through a branch or permanent establishment.

• Bonus returns: Income derived from the sale of tangible assets produced by the entity itself in the Canary Islands, typical of agricultural, livestock, industrial and fishing activities, provided that, in the latter case, deep-sea fishing is landed in the Canary Islands ports and manipulated or transformed. in the archipelago.

  For the tax periods starting on November 7, 2018, for the purposes of calculating the income derived from the sale of tangible assets produced in the Canary Islands, the following will form part of them:

  • The amounts of aid derived from the specific supply regime, established under article 3.1.a) of Regulation ( EU ) No. 228/2013 of the European Parliament and of the Council.

  • The amounts of aid to producers derived from the Community Program to Support Agricultural Productions in the Canary Islands, established under article 3.1.b) of Regulation (EU) No. 228/2013 of the European Parliament and of the Council.

• Full discounted fee: The full subsidized quota is the one that proportionally corresponds to the part of the tax base that derives from the subsidized income.

  In the event that there are extra-accounting adjustments or compensation of negative tax bases, these will influence the amount of the bonus.

• This bonus will be applied provided that it is not excluded from its application due to incompatibility with the receipt of some State aid or conditional on the provisions of the corresponding community guidelines, or its enjoyment is prevented until the reimbursement of State aid received and declared illegal and incompatible with the common market (see the twelfth Additional Provision of Law 19/1994, of July 6, the third to sixth additional provisions of Royal Decree-Law 12/2006, of December 29 and the first and second additional provisions of Royal Decree-Law 15/2014, of December 19).

• This bonus will not be applied to income derived from the sale of tangible assets produced in the Canary Islands, typical of shipbuilding activities, synthetic fibers, the automobile industry, the steel industry and the coal industry.