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Practical Handbook for Companies 2021

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

Regulation: Article 26 Law 19/1994

Entities that are entitled to apply the rebate on income derived from the sale of tangible goods produced in the Canary Islands by themselves to the gross tax liability, shall first tick box [00029] "Régimen especial Canarias" on page 1 of form 200.

Next, they should enter the amount of the rebate in box [00563] "Rebate on income from sales of tangible goods produced in the Canary Islands (art. 26 Law 19/1994)" on page 14 of form 200, taking into account the following:

  • Bonus percentage: 50 per cent, without prejudice to the limits established in Community legislation that may affect it.

    Para los períodos impositivos que se inicien a partir de 7 de noviembre de 2018, la disposición adicional segunda del Real Decreto-ley 15/2014, de 19 de noviembre, establece que con efectos desde el 1 de enero de 2015, la aplicación de esta bonificación, así como la de los beneficios fiscales que tengan la consideración de ayudas regionales al funcionamiento (Libro II y artículo 94 de la Ley 20/1991, Ley de la Comunidad Autónoma de Canarias, 4/2014, de 26 de junio, artículo 27 y Título V de la Ley 19/1994, y disposición adicional duodécima de la Ley 43/1995, de 27 de diciembre), así como las ayudas al transporte de mercancías comprendidas en el ámbito del Real Decreto 362/2009, de 20 de marzo y de la Orden de 31 de julio de 2009 del Consejero de Obras Públicas y Transportes del Gobierno de Canarias, estarán sujetas al límite del 30 por ciento del volumen de negocios anual del beneficiario obtenido en las Islas C

  • Entities that can apply the rebate: Entities domiciled in the Canary Islands or domiciled in other territories that are engaged in the production of the goods covered by the rebate in the Canary Islands, by means of a branch or permanent establishment.

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

    For tax periods commencing on or after 7 November 2018, for the purposes of calculating income derived from the sale of tangible goods produced in the Canary Islands, they will form part of the same:

    • The amounts of aid deriving from the specific supply arrangements, 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 deriving from the Community Support Programme for Agricultural Production 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 tax rebate: The full tax credit is that which corresponds proportionally to the part of the taxable income derived from the tax credit.

    In the case of off-balance sheet adjustments or offsetting of tax losses, these will influence the amount of the relief.

  • This rebate will be applied provided that it is not excluded from its application due to incompatibility with the receipt of certain State aid or subject to the provisions of the corresponding Community guidelines, or that it is prevented from being applied until the State aid received and declared illegal and incompatible with the common market has been repaid (see the twelfth additional provision of Law 19/1994, of 6 July, the third to sixth additional provisions of Royal Decree-Law 12/2006, of 29 December, and the first and second additional provisions of Royal Decree-Law 15/2014, of 19 December).

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

A tener en cuenta:

This deduction is compatible with the reserve for investments in the Canary Islands (Article 27 of Law 19/1994).The tax liability corresponding to the income giving entitlement to the rebate will be that which corresponds to the part of the gross tax liability determined from the part of the taxable income deriving therefrom, such that if the reserve for investments in the Canary Islands has been set aside, the corresponding tax liability will be understood to be that which is determined by considering the part of the taxable income after deducting the proportion of the amount of the reduction due to the allocation to the reserve for investments in the Canary Islands deriving from the aforementioned income.