Canary Islands Investment Reserve
The reserve for investments in the Canary Islands (hereinafter, RIC) is a tax incentive that allows entities subject to Corporation Tax (except those excluded by article 27 and the Twelfth Additional Provision of Law 19/1994, of July 6), the reduction in the taxable base of the amounts that, in relation to their establishments located in the Canary Islands, they allocate from their profits to the reserve for investments in the Canary Islands in accordance with the provisions of article 27 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands.
Keep in mind:
When applying this reduction, the special conditions for in the first to fourth additional provisions of Royal Decree-Law 15/2014, of December 19, amending the Economic and Tax Regime of the Canary Islands, must be taken into account.
The provisions of the sole transitional provision of Royal Decree-Law 15/2014 must also be taken into account, which regulates the transitional regime applicable to the provisions of the RIC made before January 1, 2015, to the early investments of the RIC made before January 1, 2015 and to the consideration as profits not suitable for providing the RIC to the income that has benefited from the deduction regime of article 42 of RDLeg. 4/2004.