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Practical Handbook for Companies 2021

Deduction for acquisition of used fixed assets


The article 94.3 of Law 20/1991 establishes that, in addition to the elements giving entitlement to the deduction under the general system, the investments may also be made in used fixed assets, which have not previously been eligible for the deduction for investments in the rest of the national territory, when they represent an evident technological improvement for the company, in the manner and with the requirements to be determined by regulation.


  1. For the purposes of Article 94.3 of Law 20/1991, Article 2 of Royal Decree 241/1992, of 13 March 1992, which implements Law 20/1991, of 7 June 1991, amending the tax aspects of the Canary Islands Economic and Fiscal Regime in relation to tax incentives for investment, establishes that used fixed assets belonging to one of the following categories will be eligible for investment tax relief:

    • Machinery, installations and tools.

    • Information processing equipment.

    • Internal and external transport equipment, excluding vehicles for own use by persons directly or indirectly linked to the undertaking.

  2. The acquisition of the used fixed asset must represent a clear technological improvement for the company , and this circumstance must be accredited, in the case of verification or investigation of the tax situation of the taxpayer, by justifying that the item subject to the deduction will produce or has produced one of the following effects:

    • Decrease in the unit production cost of the good or service.
    • Improving the quality of the good or service.
  3. The taxpayer must keep at the disposal of the tax authorities certification issued by the transferor stating that the item being transferred has not previously benefited from the deduction for investments or from the Investment Provident Fund scheme.

3.Amount and applicable limits

The deduction for investment in fixed assets used in the Canary Islands shall be applied to the deduction for investment in fixed assets used in the Canary Islands the same amount and the same limits foreseen in Article 94 of Law 20/1991 for the cases of deduction for investment in new fixed assets.