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 percent of the full quota, reduced in deductions to avoid internal and international double taxation and bonuses (box [00582] “Positive adjusted full quota” on page 14 of form 200). This limit is determined by application of the provisions of section 7 of the twelfth Additional Provision of Law 43/1995 (15 percent) and article 94.1. b) of Law 20/1991 , which increases the limit by 80 percent to which for each modification of the investment deduction is set 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 effects for the tax periods that begin on or after November 7, 2018, for the islands of La Palma, La Gomera and El Hierro, if we apply the general individual limit of 15 percent percent as provided in article 94.1.b) Law 20/1991 which establishes that the minimum limit of 80 percent will increase to 100 percent and the minimum differential will go to 45 percentage points, provided that the community regulations on state aid allow it and they are investments contemplated in Law 2/2016, of September 27 and other laws on measures for the organization 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 deduction for investments in new fixed assets generated in the tax period itself , as well as from previous tax periods.
Regarding the outstanding balances of the deductions for investments of article 26 of Law 61/1978, among which is the deduction for investments in new fixed assets, except that corresponding to the job creation, section 4 of the eleventh transitional provision of Law 43/1995 (collected in section 1 of the eighth transitional provision of TRLIS ), establishes that deductions from different modalities or tax periods of article 26 of Law 61/1978, of December 27, on Corporate Tax, except that corresponding to the creation of employment, may not exceed a joint limit of 35 percent of the liquid quota.
For these purposes, to the extent that the only deduction pending application from previous tax periods, by application of 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 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 statement), will be increased to 70 percent, since it is the greater of the following two:
With effects for the tax periods that begin on or after November 7, 2018, for the islands of La Palma, La Gomera and El Hierro, if we apply the general joint limit of 35 percent percent as provided in article 94.1.b) of Law 20/1991 which establishes that the minimum limit of 80 percent will increase to 100 percent and the minimum differential will go to 45 points percentages, when the community regulations on state aid allow it and they are investments contemplated in Law 2/2016, of September 27 and other laws of measures for the organization of the economic activity of these islands, the 35 percent limit 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 subject to the declaration the amount of the deduction for investments in new fixed assets in the Canary Islands with an individual limit of 50 percent of the full quota adjusted. Furthermore, for the outstanding balances of this deduction from previous tax periods (excluding the amount of the deduction for the period being declared), a will be applied to said adjusted full amount joint limit of 70 percent. ##2##