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Practical Manual of Companies 2021.

Completion of the table “Special system of the reserve for investments in the Canary Islands (Law 19/1994)” (page 22 of form 200)

Entities that have applied RIC in any tax period beginning within the years 2016 to 2021 inclusive, must complete this table as indicated below:

RIC chart:

  • In column "Pending RIC materialization at the beginning of the period" the amounts by which the tax base was reduced from the years 2016 to 2020 will be recorded, due to the reserve for investments in the Canary Islands that At the beginning of the period they have not yet materialized in any of the investments referred to in letters A, B, B bis, C and D of article 27.4 of Law 19/1994.

  • The columns “Applied/materialized in this settlement” will be completed:

    • In column «Planned investments letters A and B art. 27.4 Law 19/1994» , the amount of those amounts in which the tax base was reduced from previous years since 2016 (accounting provision in subsequent years) that have materialized in the tax period must be entered. object of declaration, in any of the investments provided for in letters A and B of article 27.4 of Law 19/1994.

    • In column «Planned investments letters B bis, C and D art. 27.4 Law 19/1994", the amount of those amounts in which the tax base was reduced from previous years since 2016 (accounting provision in subsequent years), which have materialized, in the period must be entered. tax subject to declaration, in any of the investments provided for in letters B bis, C and D of article 27.4 of Law 19/1994.

    • In column "Advanced investments considered materialization of the RIC in this settlement " the amount of those investments made in previous periods or in this one must be entered. same period that is considered early materialization of the RIC in this year.

  • In the column "Pending RIC materialization at the end of the period" the amount of the amounts that reduced the tax base and that remain pending materialization at the end of the period must be entered. According to the provisions of article 27.4 Law 19/1994, the amounts allocated to the RIC must be materialized within a maximum period of three years, counted from the date of accrual of the tax corresponding to the year in which it was allocated.

  • In box [00927] “Amount of the RIC allocation charged to 2021 benefits” , the amount by which it was reduced must be entered the tax base in the tax period being declared for having made the provision to the reserve for investments in the Canary Islands (accounting provision in the following year with a charge to the profits of said year), in accordance with the limit and other conditions established in the article 27 of Law 19/1994.

    The amount entered in this box [00927] must coincide with the negative adjustment in box [00404] "Reserve for investments in the Canary Islands (Law 19/1994)" on page 13 of form 200.

    Remember:

    Corporate Tax taxpayers who make the corresponding reduction to the reserve for investments in the Canary Islands will be obliged to present within the deadline established for presentation of the Corporate Tax declaration, the informative declaration approved by Order HAP /296/2016, of March 2, by which approves model 282 "Annual informative declaration of aid received within the framework of the Economic and Fiscal Regime of the Canary Islands and other state aid, derived from the application of European Union Law."

Anticipated investments table:

  • In column "Pending RIC endowment at the beginning of the period" the anticipated investments of future endowments to the RIC that would have been made in the years 2017 to 2020 will be recorded, with respect to which, At the beginning of the period, the RIC has not yet been allocated, and it will be charged to the benefit of subsequent years.

  • In column «Planned investments letters A and B art. 27.4 Law 19/1994» , the amount of anticipated investments made in fiscal year 2021 will be recorded pending future allocations to the reserve for investments in the Canary Islands (even in the event that the latter are charged to the benefits for fiscal year 2021). The advance investment is the one that is made prior to obtaining the benefit from which the RIC will be allocated, regardless of whether the first allocation of the RIC is made with a charge to profits from the year in which it was invested or whether the endowment for that year covers or does not cover the total anticipated investment. This box will record the investments that have been made during 2021 in any of those referred to in letters A and B of article 27.4 of Law 19/1994.

  • In column «Planned investments letters B bis, C and D art. 27.4 Law 19/1994» , the amount of anticipated investments made in fiscal year 2021 must be entered pending future allocations to the reserve for investments in the Canary Islands (even in the event that the latter are charged to the benefits for fiscal year 2021). The advance investment is the one that is made prior to obtaining the benefit from which the RIC will be allocated, regardless of whether the first allocation of the RIC is made with a charge to profits from the year in which it was invested or whether the endowment for that year covers or does not cover the total anticipated investment. This box will record the investments that have been made during 2021 in any of those referred to in letters B bis, C and D, of article 27.4 of Law 19/1994.

  • In column "Pending RIC endowment at the end of period" the amount of anticipated investments of future endowments to the RIC that have been made and that, at the end of the period, are still They are pending to fund the RIC with a charge to the profits of subsequent years, although these provisions must be made with a charge to profits until December 31, 2021 .

    Remember:

    In the tax period in which the anticipated investments are made, the materialization and its financing system must be communicated together with the Corporate Tax declaration (see section « Documentation that must be submitted before the declaration » of Chapter 1 of this Practical Manual).