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Practical Handbook for Companies 2021

Applicable percentages

The deduction for the acquisition of new fixed assets continues to be applied in the Canary Islands in accordance with the deduction system in force at the time of the abolition of Article 26 of Law 61/1978, with the special features introduced by Article 94 of Law 20/1991.

Therefore, the deduction percentage of 5 percent established in the twelfth additional provision of Law 43/1995, can be increased to in accordance with article 94.1.a) of Law 20/1991.This Article states that the rates applicable to the investments made will be 80 per cent higher than those of the general scheme, with a minimum differential of 20 percentage points.In the case of this deduction, the percentage to be applied is 25 per cent, as this is the higher of the following two percentages:

  • 5 % x 1,8 = 9%
  • 5 % + 20 % = 25%.