# Practical example

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

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

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

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

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 fiscal 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 carried out, this entity meets the legal limits and will be able to apply the full pending deduction 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 table "Investment deductions in the Canary Islands with increased limits" of the pages 16 bis and 17 of model 200 as follows:

Investment deductions in the Canary Islands with increased limits
(page 16 bis of model 200)
ExercisesDeduction
pending / generated
Applied in this
settlement
Pending application
in future years
2016: Fixed assets (Law 20/1991) [01357] 300 [01358] 300 [01359] 0
2017: Fixed assets (Law 20/1991) [01778] 600 [01779] 600 [01780] 0
2018: Fixed assets (Law 20/1991) [00852] 900 [00853] 900 [00856] 0
2022: Fixed assets (Law 20/1991) [00711] 500 [00712] 500 [02077] 0