Applicable limits
In the same way that the percentages are increased, the limits ## applicable to this deduction will also be increased in accordance with article 94.1. b) of Law 20/1991.
The deduction for investments in new fixed assets in the Canary Islands is subject to an increased individual limit of 50 of the total tax, reduced by deductions to avoid internal and international double taxation and bonuses (box [00582] Positive adjusted total tax" on page 14 of form 200). This limit is determined by applying the provisions of section 7 of the Twelfth Additional Provision of Law 43/1995 (15 percent) and in article 94.1.b) of Law 20/1991 , which increases the limit by 80 percent to that set for each modification of the deduction for investments in the general regime with a minimum differential of 35 percentage points. In this case, the increased individual limit is set at 50 percent, because it is the greater of the following two:
With effect for the tax periods beginning on or after 7 November 2018, for the islands of La Palma, La Gomera and El Hierro, if we apply to the general individual limit of 15 percent the provisions of article 94.1.b) Law 20/1991 which establishes that the minimum limit of 80 percent will be increased to 100 percent and the minimum differential will increase to 45 percentage points, provided that the Community regulations on state aid so permit and the investments are contemplated in Law 2/2016, of 27 September and other laws on measures for the regulation of the economic activity of these islands, the 15 percent limit will be increased to 60 percent , since according to the following calculations it is the greater of:
This increased individual limit of 50 percent (60 percent for the islands of La Palma, La Gomera and El Hierro) applies to both the deduction for investments in new fixed assets generated in the tax period itself and to those from previous tax periods.
As regards the balances of the deductions for investments in article 26 of Law 61/1978, which include the deduction for investments in new fixed assets, except for the one corresponding to job creation, section 4 of the transitional provision of Law 43/1995 (included in section 1 of the eighth transitional provision of the ), establishes that the deductions from different tax modalities or periods of article 26 of Law 61/1978, of December 27, on Corporate Tax, except for the one corresponding to job creation may not exceed a joint limit of of the net quota.
For these purposes, to the extent that the only deduction pending application from previous tax periods, pursuant to Article 26 of Law 61/1978, is the deduction for investments in new fixed assets in the Canary Islands, in the event that amounts of this deduction arise from different tax periods, the joint limit of 35 percent referred to in section 4 of the eleventh transitional provision of Law 43/1995 will apply.
Therefore, the joint limit of 35 percent in accordance with the provisions of article 94.1. b) of Law 20/1991 for the case of the deduction for investments in new fixed assets in the Canary Islands pending application from previous tax periods (excluding the amount of the deduction for the period subject to declaration), will be increased to 70 percent, since it is the highest of the following two:
With effect for the tax periods beginning on or after 7 November 2018, for the islands of La Palma, La Gomera and El Hierro, if we apply to the general joint limit of 35 percent the provisions of article 94.1.b) of Law 20/1991 which establishes that the minimum limit of 80 percent will be increased to 100 percent and the minimum differential will increase to 45 percentage points, when the community regulations on state aid so permit and it concerns investments contemplated in Law 2/2016, of 27 September and other laws on measures for the regulation of the economic activity of these islands, the limit of 35 percent will be increased to 80 percent , since according to the following calculations it is the greater of:
In this way, taxpayers will be able to deduct in the period covered by the declaration the amount of the deduction for investments in new fixed assets in the Canary Islands with individual limit of 50 percent the adjusted total quota. In addition, for outstanding balances of this deduction from previous tax periods (excluding the amount of the deduction for the reporting period), joint limit of percent will be applied to said adjusted total amount