Practical example

Entity "A" with tax domicile in the Canary Islands has made investments in the Canary Islands in the year 2022 that entitle it to apply the deduction for the acquisition of new fixed assets (DAF). The deduction generated in this year is 500 euros.

The deduction for the acquisition of new fixed assets generated by entity "A" in previous years pending application and which will be applied in this year is:

• Exercise 2016: 300 euros
• Fiscal year 2017 600 euros
• Exercise 2018: 900 euros

The positive adjusted gross tax rate of entity "A" in fiscal year 2022 (box [00582] on page 14 of form 200) is 8,000 euros.

In order to apply this deduction, this entity must respect the 50/70 percent limits. These limits will be calculated as follows:

• DAF/2016: 300 < 8,000 x 0.5 = 4,000
• DAF/ 2017: 600 < 8,000 x 0.5 = 4,000
• DAF/2018: 900 < 8,000 x 0.5 = 4,000

Deduction for the year 2022:

• Joint limit:

  300 + 600 + 900 = 1,800 < 8,000 x 0.7 = 5,600

• Individual limit:

  DAF/2020: 500 < 8,000 x 0.5 = 4,000

According to the calculations made, this entity complies with the legal limits and will be able to apply the pending deduction in full in fiscal year 2022, as well as the deduction generated in this fiscal year.

According to this example, entity "A" must transfer the amount of the amounts corresponding to the deduction for the acquisition of new fixed assets to the box "Deductions for investment in the Canary Islands with increased limits" on pages 16 bis and 17 of form 200 as follows: