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Practical Manual for Companies 2021.

Deductions to encourage certain activities that apply in the Canary Islands

Article ) of Law establishes that the applicable rates on investments made will be 80 percent higher than those of the general regime, with a minimum differential of 20 percentage points, therefore to calculate the rate applicable to each the following deductions, the highest of the ones resulting from multiplying by 1.8 or adding 20 percentage points to the rate in question will be chosen.

Remember:

This increase in rates will only apply to the new deduction system established in Chapter IV of Title VI of the LIS , where it is equivalent to the deduction system in article 26 of Law 61/1978.

Below we will detail the way in which the general deductions regulated in the LIS are applied in relation to investments made in the Canary Islands, making special mention of the increased rates and the special limits:

  1. Deduction for research and development activities
  2. Deduction for activities related to technological innovation
  3. Deduction for investments in Spanish cinematographic productions
  4. Deduction for investments in foreign cinematographic production
  5. Deduction for investments in production and exhibition of live performing arts and musical shows
  6. Deduction for the creation of employment
  7. Deduction for job creation for disabled workers