General aspects of increased limits. Examples
The increased limits of article 94.1. b) of Law 20/1991 will be applied on the full quota reduced by deductions to avoid international double taxation and bonuses (specifically, on box [00582 ] "Positive adjusted full quota" on page 14 of model 200).
In relation to these increased limits, the provisions of article 39 of the LIS must be taken into account, which establishes that the amount of the deductions applied in the tax period, may not jointly exceed 25 percent of the full quota reduced by the deductions to avoid international double taxation and bonuses. However, the limit will be raised to 50 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 the full tax, reduced by deductions to avoid international double taxation and bonuses.
Therefore:

If we apply to the general limit of 25 percent the provisions of article 94.1.b) of Law 20/1991, according to which the limits will always be 80 percent higher than the For each modification of the investment deduction is set in the general regime with a minimum differential of 35 percentage points, the 25 percent limit will increase to 60 percent, since according to the following calculations it is the greatest of:
With effect for tax periods beginning on or after November 7, 2018, for the islands of La Palma, La Gomera and El Hierro , if we apply to the general limit of 25 percent the provisions of article 94.1.b) Law 20/1991, which establishes that the minimum limit of 80 percent will be increased to 100 percent and The minimum differential will go to 45 percentage points, provided that the community regulations on state aid allow it and they are investments contemplated in Law 2/2016, of September 27 and other laws on measures for the organization of economic activity. of these islands, the 25 percent limit will be increased to 70 percent, since according to the following calculations it is the greater of:

If we apply the provisions of article 94.1.b) of Law 20/1991 to the 50 percent limit, this limit will increase to 90 percent, since in accordance with the following calculations is the greatest of:
With effect for tax periods beginning on or after November 7, 2018, for the islands of La Palma, La Gomera and El Hierro, if we apply to the general limit of 50 percent the provisions of article 94.1.b) of Law 20/1991, which establishes that the minimum limit of 80 percent will be increased to 100 percent. one hundred and the minimum differential will go to 45 percentage points, when the community regulations on state aid allow it and they are investments contemplated in Law 2/2016, of September 27 and other laws on measures for the organization of the activity. economic of these islands, the 50 percent limit will be increased to 100 percent, since according to the following calculations it is the greater of:
 50% x 2 = 100%
 50% + 45% = 95%

In relation to the improvement of the limits provided for in article 94.1.b) of Law 20/1991 for the islands of La Palma, La Gomera and El Hierro, after the modification made for the tax periods starting on November 7, 2018 by Law 8/2018, of November 5, to be able to apply the increased percentages of the maximum limit on the positive adjusted full quota in said minor islands, the taxpayer is required to have its tax domicile or a permanent establishment in such islands, and that the investment is located and used in them.
Regarding the application of the limits, in those cases in which the taxpayer generates deductions in the aforementioned minor islands and in the rest of the Canary archipelago, must meet simultaneously the following criteria:

The deductions generated in the three indicated islands must respect their own improved limit. Likewise, deductions generated in the rest of the Canary Islands must also respect their own improved limit.

In the event that there are both deductions in the three mentioned islands and in the rest of the Canary Islands, the maximum limit for both types of deductions will be the upper one, that is, the improved limit of the three islands.

In the event that deductions apply in the three aforementioned islands and in the rest of the Canary Islands, the latter will not be able to benefit from the increased limit of the three islands.

Practical examples
Below is a series of examples in which you can see in a more graphic way how the increased limits are applied in cases where the taxpayer generates deductions for investments on the islands of La Palma, La Gomera and El Hierro, as well as in the rest of the Canary archipelago.
Example 1
Company "A" with tax domicile in the Canary Islands, has made investments in fiscal year 2022 in different islands of the Canary Islands, for which it has generated the following deductions:
Deductions generated in 2022 :
 Deduction for investments in Tenerife: 5,000 euros
 Deduction for investments in La Palma: 9,000 euros
Note: We assume that no R&D&I expenses have been incurred in generating these deductions.
This company has a full adjusted quota (box [00582] on page 14 of form 200) of 10,000 euros
 Increased limit in Tenerife (60%): 10,000 x 0.6 = 6,000 euros
 Improved increased limit on La Palma (70%): 10,000 x 0.7 = 7,000 euros
 Maximum limit to apply on the IC: Improved Increased Limit: 10,000 x 0.7 = 7,000 euros
Deductions to apply in 2022 :
 Deduction for investments in La Palma: 7,000 euros
 Deduction for investments in Tenerife: 0 euros
Although the taxpayer can choose how to apply this deduction for investments in the Canary Islands, making numerous combinations and always respecting the increased limits established, in this case, the most advantageous option for company "A" is to first apply the deduction for investments made in La Palma, respecting the maximum limit of 70% to be applied to the full quota. In this way, company "A" will deduct in 2022 , 7,000 euros from the 9,000 euros invested in La Palma, and nothing can be deducted from what was invested in Tenerife.
Deductions to apply in future years:
 Deduction for investments in Tenerife: 5,000 euros
 Deduction for investments in La Palma: 2,000 euros
Example 2
Company "B" with tax domicile in the Canary Islands, has made investments in fiscal year 2022 in different islands of the Canary Islands, for which it has generated the following deductions:
Deductions generated in 2022 :
 Deduction for investments in Tenerife: 5,000 euros
 Deduction for investments in La Palma: 6,000 euros
Note: We assume that no R&D&I expenses have been incurred in generating these deductions.
This company has a full adjusted quota (box [00582] on page 14 of form 200) of 10,000 euros
 Increased limit in Tenerife (60%): 10,000 x 0.6 = 6,000 euros
 Improved increased limit on La Palma (70%): 10,000 x 0.7 = 7,000 euros
 Maximum limit to apply on the IC: Improved Increased Limit: 10,000 x 0.7 = 7,000 euros
Deductions to apply in 2022 :
 Deduction for investments in La Palma: 6,000 euros
 Deduction for investments in Tenerife: 1,000 euros
Although the taxpayer can choose how to apply this deduction for investments in the Canary Islands, making numerous combinations and always respecting the increased limits established, in this case, the most advantageous option for company "B" is to first apply the deduction for investments made in La Palma, and the total amount invested of 6,000 euros can be deducted. Furthermore, as the maximum deduction limit for investments is 7,000 euros, company "B" can also deduct the amount of 1,000 euros corresponding to the investment made in Tenerife.
Deductions to apply in future years:
 Deduction for investments in La Palma: 0 euros
 Deduction for investments in Tenerife: 4,000 euros
Example 3
Company "C" with tax domicile in the Canary Islands, has made investments in fiscal year 2022 in different islands of the Canary archipelago, for which it has generated the following deductions:
Deductions generated in 2022 :
 Deduction for investments in Tenerife: 9,000 euros
 Deduction for investments in La Palma: 500 euros
Note: We assume that no R&D&I expenses have been incurred in generating these deductions.
This company has a full adjusted quota (box [00582] on page 14 of form 200) of 10,000 euros
 Increased limit in Tenerife (60%): 10,000 x 0.6 = 6,000 euros
 Improved increased limit on La Palma (70%): 10,000 x 0.7 = 7,000 euros
 Maximum limit to apply on the IC: Improved Increased Limit: 10,000 x 0.7 = 7,000 euros
Deductions to apply in 2022 :
 Deduction for investments in La Palma: 500 euros
 Deduction for investments in Tenerife: 6,000 euros
Although the taxpayer can choose how to apply this deduction for investments in the Canary Islands, making numerous combinations and always respecting the increased limits established, in this case, the most advantageous option for company "C" is to first apply the deduction for investments made in La Palma, and the total amount invested of 500 euros can be deducted. Furthermore, company "C" can apply the deduction for investment in Tenerife, taking into account that, although the maximum limit to be applied to both deductions is the improved increased limit of 70% on the full quota (7,000), the deductions that are carried out in the rest of the Canary archipelago (in this case, in Tenerife) cannot benefit from the improved increased limit of the three smaller islands (in this case, La Palma), so they will apply the unimproved increased limit of 60%. In this way, although the maximum limit to apply is 7,000 euros, company "C" cannot deduct the amount of 6,500 euros for investments made in Tenerife, since it exceeds its increased limit of 60% of the full quota (6,000 ).
Deductions to apply in future years:
 Deduction for investments in La Palma: 0 euros
 Deduction for investments in Tenerife: 3,000 euros
Example 4
Company "D" with tax domicile in the Canary Islands, has made R&D expenses in the fiscal year 2022 on different islands of the Canary archipelago, for which it has generated the following deductions for research and development of article 35 of the LIS:
Deductions generated in 2022 :
 Deduction for R&D activities in Tenerife: 500 euros
 Deduction for R&D activities in La Palma: 400 euros
Note: We assume that company "D" has not generated the right to apply any other deduction during the exercise.
This company has a full adjusted quota (box [00582] on page 14 of form 200) of 10,000 euros
 Calculation of the limits to apply: 10% 10,000 = 1,000 euros
 Total amount of deductions on both islands: 500 euros + 400 euros = 900 euros
 900 euros < 1,000 euros
 Increased limit to apply in Tenerife: 60%
 Increased limit to apply in La Palma: 70%
In this case, to determine the limits to apply in each of the islands, all the expenses incurred in R&D in the Canary Islands have been taken into account (without distinguishing the part corresponding to the three smaller islands from that of the rest of the archipelago. Canary). In this way, the limit to be applied in Tenerife will be 60%, which rises to 70% in La Palma, since the amount of the deduction for research and development activities (900 euros), which corresponds to expenses and investments made in the tax period itself, does not exceed 10% of the full adjusted fee (1,000 euros).
Deductions to apply in 2022 :
 Increased limit in Tenerife (60%): 10,000 x 0.6 = 6,000 euros
 Improved increased limit on La Palma (70%): 10,000 x 0.7 = 7,000 euros
 Maximum limit to apply on the IC: Improved Increased Limit: 10,000 x 0.7 = 7,000 euros
 Deduction for R&D activities in Tenerife: 500 euros
 Deduction for R&D activities in La Palma: 400 euros
Although the taxpayer can choose how to apply this deduction for investments in the Canary Islands, making numerous combinations and always respecting the established increased limits, the option included here is the most advantageous to apply the maximum deduction.
Deductions to apply in future years:
There are no deductions pending to apply in future years.
Example 5
Company "E" with tax domicile in the Canary Islands, has made R&D expenses in the fiscal year 2022 on different islands of the Canary archipelago, for which it has generated the following deductions for research and development of article 35 of the LIS:
Deductions generated in 2022 :
 Deduction for R&D activities in Tenerife: 9,500 euros
 Deduction for R&D activities in La Palma: 12,000 euros
Note: We assume that company "E" has not generated the right to apply any other deduction during the exercise.
This company has a full adjusted quota (box [00582] on page 14 of form 200) of 10,000 euros
 Calculation of the limits to apply = 10% 10,000 = 1,000 euros
 Total amount of deductions on both islands: 9,500 euros + 12,000 euros = 21,500 euros
 21,500 euros > 1,000 euros
 Maximum limit to apply in Tenerife: 90%
 Increased limit to apply in La Palma: 100%
In this case, to determine the limits to apply in each of the islands, all the expenses incurred in R&D in the Canary Islands have been taken into account (without distinguishing the part corresponding to the three smaller islands from that of the rest of the archipelago. Canary). In this way, the limit to be applied in Tenerife will be 90%, which rises to 100% in La Palma, since the amount of the deduction for research and development activities (21,500 euros), which corresponds to expenses and investments made in the tax period itself, exceeds 10% of the full adjusted fee (1,000 euros).
Deductions to apply in 2022 :
 Increased limit in Tenerife (90%): 10,000 x 0.9 = 9,000 euros
 Improved increased limit on La Palma (100%): 10,000 x 0.10 = 10,000 euros
 Maximum limit to apply on the IC: Improved Increased Limit: 10,000 x 0.10 = 10,000
 Deduction for R&D activities in Tenerie: 0 euros
 Deduction for R&D activities on La Palma: 10,000 euros
Although the taxpayer can choose how to apply this deduction for investments in the Canary Islands, making numerous combinations and always respecting the established increased limits, the option included here is the most advantageous.
Deductions to apply in future years:
 Deduction for R&D activities in Tenerife: 9,500 euros
 Deduction for R&D activities in La Palma: 2,000 euros