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Practical Manual of Companies 2020.

Completion of the table “Special system of the reserve for investments in the Canary Islands (Law 19/1994)” (page 22 of form 200)

Entities that have applied RIC in any tax period beginning within the years 2016 to 2020 inclusive, must complete this table as indicated below:

RIC chart:

  • In column "Pending RIC materialization at the beginning of the period" the amounts by which the tax base was reduced from the years 2016 to 2019 will be recorded, due to the reserve for investments in the Canary Islands that At the beginning of the period they have not yet materialized in any of the investments referred to in letters A, B, B bis, C and D of article 27.4 of Law 19/1994.

  • The columns “Applied/materialized in this settlement” will be completed:

    • In column «Planned investments letters A and B art. 27.4 Law 19/1994» , the amount of those amounts in which the tax base was reduced from previous years since 2016 (accounting provision in subsequent years) that have materialized in the tax period must be entered. object of declaration, in any of the investments provided for in letters A and B of article 27.4 of Law 19/1994.

    • In column «Planned investments letters B bis, C and D art. 27.4 Law 19/1994", the amount of those amounts in which the tax base of previous years was reduced since (accounting provision in subsequent years), which have materialized, in the tax period must be entered. object of declaration, in any of the investments provided for in letters B bis, C and D of article 27.4 of Law 19/1994.

    • In column "Advanced investments considered materialization of the RIC in this settlement " the amount of those investments made in previous periods or in this one must be entered. same period that is considered early materialization of the RIC in this year.

  • In column "Pending RIC materialization at the end of the period" the amount of the amounts that reduced the tax base corresponding to the years 2016 to 2020 must be entered (accounting for in subsequent years with charged to the profits of said years), which have not yet materialized in any of the investments referred to in letters A, B, B bis, C and D of article 27.4 of Law 19/1994 and which, therefore , remain to be materialized in the following exercises. According to the provisions of article 27.4 Law 19/1994, the amounts allocated to the RIC must 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. This maximum period of three years is extended to four years for the amounts allocated to the RIC funded with benefits obtained in tax periods beginning in 2016.

  • In box box [00927] of row "Amount of the RIC endowment charged to 2020 benefits" , the amount must be entered in the that the tax base was reduced in the tax period being declared due to having made the provision to the reserve for investments in the Canary Islands (accounting provision in the following year with a charge to the profits of said year), in accordance with the limit and other established conditions in article 27 of Law 19/1994.

    The amount entered in this box [00927] must coincide with the negative adjustment in box [00404] "Reserve for investments in the Canary Islands (Law 19/1994)" on page 13 of form 200.

    Remember:

    Corporate Tax taxpayers who make the corresponding reduction to the reserve for investments in the Canary Islands will be obliged to present within the deadline established for presentation of the Corporate Tax declaration, the informative declaration approved by Order HAP/296/2016. of March 2, approving model 282 «Annual informative declaration of aid received within the framework of the Economic and Fiscal Regime of the Canary Islands and other state aid, derived from the application of European Union Law.

Anticipated investments table:

  • In column "Pending RIC endowment at the beginning of the period" the anticipated investments of future endowments to the RIC that would have been made in the years 2017 to 2019 will be recorded, with respect to which, At the beginning of the period, the RIC has not yet been allocated, and it will be charged to the benefit of subsequent years.

  • In column «Planned investments letters A and B art. 27.4 Law 19/1994» , the amount of anticipated investments made in the 2020 financial year pending future allocations to the reserve for investments in the Canary Islands will be recorded (even in the event that the latter are charged to the benefits for fiscal year 2020). The advance investment is the one that is made prior to obtaining the benefit from which the RIC will be allocated, regardless of whether the first allocation of the RIC is made with a charge to profits from the year in which it was invested or whether the endowment for that year covers or does not cover the total anticipated investment. This box will record the investments that have been made during 2020 in any of those referred to in letters A and B of article 27.4 of Law 19/1994.

  • In column «Planned investments letters B bis, C and D art. 27.4 Law 19/1994» , the amount of anticipated investments made in the 2020 financial year must be entered pending future allocations to the reserve for investments in the Canary Islands (even in the event that the latter are charged to the benefits for fiscal year 2020). The advance investment is the one that is made prior to obtaining the benefit from which the RIC will be allocated, regardless of whether the first allocation of the RIC is made with a charge to profits from the year in which it was invested or whether the endowment for that year covers or does not cover the total anticipated investment. This box will record the investments that have been made during 2020 in any of those referred to in letters B bis, C and D, of article 27.4 of Law 19/1994.

  • In column "Pending RIC endowment at the end of period" the amount of anticipated investments of future endowments to the RIC that would have been made in the years 2017 to 2020 must be entered, which, end of the period, they are still pending to fund the RIC with a charge to the profit of subsequent years. Although these provisions must be made from benefits until December 31, 2020 . (By virtue of the modification introduced in article 27.11 of Law 19/1994 by the first Final Provision of Royal Decree-Law 34/2020, of November 17, on urgent measures to support business solvency and the energy sector, and in tax matters, section one, this period is extended until December 31, 2021 ).

    Remember:

    In the tax period in which the anticipated investments are made, the materialization and its financing system must be communicated together with the Corporate Tax return (see section « Documentation that must be submitted with the return » from Chapter 1 of this Practical Manual).