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Practical Manual of Companies 2022.

Deductions for investment in the Canary Islands with increased limits (page 16 bis of form 200)

Entities that have the right to apply deductions for investments made in the Canary Islands in the terms set out in the previous sections, will enter their amount in box [00590] “Canary Islands Investment Deductions” on the page 14 of the 200 model. The amount entered in this box will be the one resulting from completing breakdown table on page 16 bis of model 200 explained below.

This table must record the amounts related to the deductions on fixed assets generated in the tax periods 2010 to 2022 , and the deductions included in Chapter IV of Title VI of LIS as long as they are equivalent to article 26 of Law 61/1978 generated in the tax periods 2004 to 2022 , as detailed below:

  • Column "Joint limit" expresses the joint percentage that must operate on the full quota minus the double taxation deductions and bonuses ( box [00582] "Positive adjusted full quota" on page 14 of form 200), to determine the maximum amount applicable in the tax period being declared.

    Keep in mind:

    deductions for investments in fixed assets that come from previous tax periods that are pending application as well as the tax period being declared, will apply an individual limit of 50 percent , and a joint limit of 70 percent.

    With effect for tax periods beginning on or after November 7, 2018, on the islands of La Palma, La Gomera and El Hierro, the individual limit of 50 percent is raised to 60 percent , and the joint limit of 70 percent is raised to 80 percent.

    Regarding the deductions included in Chapter IV of Title VI of the LIS, as long as they are equivalent to article 26 of Law 61/1978 , the joint limit will apply of 60 percent on the net amount of the tax period, which will rise to 90 percent when the amount of the deductions provided for in articles 35 and 36 of the LIS , which corresponds to expenses and investments made in the tax period itself, exceeds 10 percent of said liquid quota.

    With effect for the tax periods beginning on or after November 7, 2018, on the islands of La Palma, La Gomera and El Hierro, the joint limit of 60/90 percent, will be raised to 70/100 percent, respectively.

  • Column "Year limit" indicates the last year in which the deduction may be applied, which will be the first of those indicated when the fiscal year coincides with the calendar year, provided that the fiscal year lasts twelve months.

  • In column "Deduction pending/generated" , the amounts of deductions for fixed assets and investments included in Chapter IV of Title VI of the LIS will be entered in the corresponding boxes. are equivalent to article 26 of Law 61/1978, both from previous tax periods and from the current tax period, and which are pending application at the beginning of the tax period that is the subject of declaration.

    The rows «Fixed assets (Law 20/1991) 2022 (*)» , «Investments in the Canary Islands (Law 20/ 1991) 2022 (*)» and «Investments in La Palma, La Gomera and EL Hierro (Law 20/1991) 2022 (*)» , must only be completed if they are deductions pending to be applied corresponding to a previous tax period starting in 2022 .

  • In column "Applied in this settlement" the part (or all, if applicable) of the amounts entered in the previous column "Deduction generated" relating to deductions for investments made will be collected. in the Canary Islands, which are applied in the settlement corresponding to the period subject to settlement.

    In box box [00590] the total of the amounts entered in the column "Applied in this settlement" will be collected, which must be transferred to box [00590] “Deductions in the Canary Islands” on page 14 of form 200 regarding the settlement of the Tax.

  • In column "Pending application in future periods" the positive difference between the amount of deductions pending at the beginning of the tax period or generated in said period in the column "Deduction pending/ generated", and the amount of the deductions applied in the settlement of the tax period being declared in the column "Applied in this settlement". This amount will remain pending application in future tax periods, unless the tax period being declared is the last in which the corresponding deduction can be applied, in which case the balance pending deduction would be lost.

    Keep in mind:

    The amounts not deducted may be applied , respecting the limits that apply to them, in the settlements of the tax periods that end in the 15 immediate and successive years.

    However, the amounts corresponding to the deduction for research and development and technological innovation activities provided for in article 35 of the LIS, may be applied in the settlements of the tax periods that end in the 18 immediate and successive years.

In addition to completing the aforementioned breakdown table, taxpayers must provide the following additional information to calculate the limits of deductions for investments in the Canary Islands:

  • In box [02287] « 2022 : Deduction for research and development in the Canary Islands generated in the tax period» , the amount of the deduction for carrying out research and development activities generated in the year must be entered. 2022 .

  • In box [02288] « 2022 : Deduction for technological innovation in the Canary Islands generated in the tax period» , the amount of the deduction must be entered for carrying out technological innovation activities generated in the year 2022 .

  • In box [02495] « 2022 Producer: deduction for Spanish film productions in the Canary Islands generated in the tax period» , the amount of the deduction for investments in Spanish film productions generated by the producer in the year must be entered. 2022 .

  • In box [02079] « 2022 : Financier: deduction for Spanish film productions in the Canary Islands generated in the tax period » , the amount of the deduction for investments in Spanish film productions generated by the producer in 2022 and applied by the taxpayer who finances said productions must be entered.

  • In box [02496] « 2022 Producer: deduction for live performances of performing arts and musicals in the Canary Islands generated in the tax period» , the amount of the deduction for investments in live performances of performing arts and musicals generated in the year 2022 .

  • In box [02080] «2022: Financier: for live performances of performing arts and musicals in the Canary Islands generated in the tax period» , the amount of the deduction for investments in live performances of performing arts and musicals generated by the producer in the year 2022 and applied by the taxpayer who finances said productions.