Practical example

Entity "A" with tax domicile in the Canary Islands has made investments in the Canary Islands in 2020 that give it the right to apply the deduction for the acquisition of new fixed assets (DAF). The deduction generated in this exercise is 500 euros.

The deduction for the acquisition of new fixed assets generated by entity "A" in previous years pending application and that will be applied in this year is:

• Fiscal year 2014: 300 euros
• Fiscal year 2015: 600 euros
• Fiscal year 2016: 900 euros

The full positive adjusted quota of entity "A" in fiscal year 2020 (box [00582] on page 14 of form 200) is 8,000 euros.

To apply this deduction, this entity must respect the 50/70 percent limits. These limits will be calculated as follows:

• DAF/2014: 300 < 8,000 x 0.5 = 4,000
• DAF/2015: 600 < 8,000 x 0.5 = 4,000
• DAF/2016: 900 < 8,000 x 0.5 = 4,000

Deduction for fiscal year 2020:

• Joint limit:

  300 + 600 + 900 = 1,800 < 8,000 x 0.7 = 5,600

• Individual limit:

  DAF/2020: 500 < 8,000 x 0.5 = 4,000

According to the calculations carried out, this entity complies with the legal limits and will be able to apply the pending deduction in full in fiscal year 2020, as well as the deduction generated in this fiscal year.

According to this example, entity "A" must transfer the amount of the amounts corresponding to the deduction for the acquisition of new fixed assets to the table "Investment deductions in the Canary Islands with increased limits" of the page 16 bis of model 200 as follows: