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Practical Handbook for Companies 2021

Deduction for job creation for disabled workers

Regulation:Article 38 LIS

  • In the Canary Islands, the deduction for job creation for workers with disabilities of article 38 of the LIS applies, which establishes a deduction of 9,000 euros for each person/year of increase in the average number of workers with disabilities of 33 per cent or more but less than 65 per cent, with respect to the average number of workers of the previous year.If the degree of disability is equal to or greater than 65 per cent, the deduction will be 12,000 euros.

    With effect for the tax periods beginning on or after 7 November 2018, article 94 bis of Law 20/1991 establishes that the amounts established in article 38 of the LIS for this deduction, will be increased by 30 per cent.In this way, in the Canary Islands the deductions for job creation for disabled workers of 9,000 and 12,000 euros will be increased to 11,700 and 15,600 euros, respectively.

  • The increased percentages of Article 94.1 a) of Law 20/1991 will not be applied to this deduction , insofar as the increase referred to in that letter only refers to deduction percentages and this deduction in Article 38 of the LIS does not contain percentages, but fixed monetary amounts depending on the increase in the workforce, just like the deduction regulated in Article 26 of the repealed Law 61/1978.

  • The improved deduction limits of Article 94.1.b) of Law 20/1991 will apply to this deduction , as Article 26 of Law 61/1978, as already mentioned, contained a deduction for disabled workers at the time of its repeal.