RIC case studies
Example 1
In the tax period that began on January 1, 2021 , company "A", domiciled in the Canary Islands, charges against the profits for the year 2021 , an endowment to the RIC in the amount of 1,000 euros. In this same period, said company has profits that are not subject to distribution of 1,000,000 euros.
In the year 2022 acquires a material asset for 1,000 euros that contributes to improving the environment in the Canary Islands.
As in fiscal year 2021 , in fiscal year 2022 company "A" has profits that are not subject to distribution of 1,000,000 of euros.
In this case, the reduction that company "A" may apply to its tax base will be limited to 90 percent of the part of the profit obtained that is not subject to distribution:
Limit: 90% x 1,000,000 euros = €900,000.
Exercise 2021 :
Company "A" makes a contribution to the RIC in the amount of 1,000 euros from the profits for fiscal year 2021 (it can make it because it meets the limit, since 1,000 euros < 900,000 euros ), so must enter an amount of 1,000 euros in the row «Amount of the RIC endowment charged to profits from 2021 » of the table "Special regime of the reserve for investments in the Canary Islands (Law 19/1994)" on page 22 of model 200.
In addition, must complete on page 13 of form 200, the box [00404] “Reserve for investments in the Canary Islands (Law 19/1994)” (negative adjustment) for the amount of 1,000 euros , since it is the value of the reduction in the tax base for the year 2021 that is carried out for reasons of the endowment to the RIC.
However, an amount of 1,000 euros remains to be realized in subsequent periods . For this reason, company "A" must complete, in the first table on page 22 of Form 200, column "Pending materialization of RIC in future periods", in the corresponding row to the RIC 2021 for the amount of 1,000 euros .
In accordance with the above, company "A" must complete the adjustment on page 13 and the table on page 22 of form 200 corresponding to the 2020 financial year, as follows:
| Detail of the corrections to the result of the P and G account (page 13 of model 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
1,000 |
Special regime of the reserve for investments in the Canary Islands (page 22 of model 200)
| RIC | Pending materialization RIC at beginning of period | Applied / materialized in this settlement | Pending materialization RIC at the end of the period | ||||
|---|---|---|---|---|---|---|---|
| Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Anticipated investments considered materialization of the RIC in this liquidation | |||||
| RIC 2021 | --- | --- | --- | --- | 1,000 | ||
| Amount of the RIC endowment charged to benefits of 2021 | |
|---|---|
| [00927] | 1,000 |
Year 2022 :
Company "A" does not make a provision to the RIC in this year, so will not have to complete the row "Amount of the RIC provision charged to profits of 2022 » from the table «Special regime of the reserve for investments in the Canary Islands (Law 19/1994)» on page 22 of model 200.
In addition, must not complete the box [00404] “Reserve for investments in the Canary Islands (Law 19/1994)” (negative adjustment) on page 13 of form 200, since it will not be reduced the tax base for the year 2022 due to the allocation to the RIC.
Please note that the investment made by company B in fiscal year 2022 is not considered an anticipated investment, since, although in 2022 it is not RIC endowment, the investment of this exercise is a materialization of the reserve endowment that was made in 2021 .
At the beginning of the financial year 2022 1,000 euros remain to be materialized of the endowment to the RIC charged to profits from 2021 carried out in the year 2021 , so company "A" must enter it in the first table on page 22 of Form 200 related to the Special Regime of the reserve for investments in the Canary Islands (Law 19/1994) column "Pending materialization of RIC at the beginning of the period", in the row corresponding to RIC 2021 , the amount of 1,000 euros.
The amount invested in the period 2022 is 1,000 euros, so company "A" must complete the first table on page 22 of the Model 200 relating to the Special Regime of the reserve for investments in the Canary Islands (Law 19/1994) stating in column «Investments planned letters B bis, C and D, art. 27.4 Law 19/1994", in the row corresponding to RIC 2021 , the amount of the materialization, that is, 1,000 euros . In fiscal year 2022 , the total amount of the provision made during 2021 is materialized, therefore that there is nothing pending to materialize for future years. For this reason, company "A" should not complete the column "Pending RIC materialization at the end of the period."
In this way, the adjustment on page 13 and the table on page 22 of model 200 corresponding to fiscal year 2022 will be completed as follows:
| Detail of the corrections to the result of the P and G account (page 13 of model 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
0 |
Special regime of the reserve for investments in the Canary Islands (page 22 of model 200)
| RIC | Pending materialization RIC at beginning of period | Applied / materialized in this settlement | Pending materialization RIC at the end of the period | ||||
|---|---|---|---|---|---|---|---|
| Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Anticipated investments considered materialization of the RIC in this liquidation | |||||
| RIC 2021 | 1,000 | --- | 1,000 | --- | 0 | ||
| Amount of the RIC endowment charged to 2021 benefits | |
|---|---|
| [00927] | 0 |
Example 2
In the tax period that began on January 1, 2021 company "B", domiciled in the Canary Islands, acquires a tangible asset that contributes to improving the environment in the Canary Islands for 1,000 euros. .
Company "B" does not make any allocation to the RIC ## in fiscal year ##1 2021 .
In 2022 , it does not make any investment in which the RIC could materialize, although, with a charge to the profits of 2022 , company «B » records in 2023 an endowment to the RIC in the amount of 1,000 euros.
Both in fiscal year 2021 and in 2022 , company "B" has profits that are not subject to distribution of 1,000,000 euros .
Both in fiscal year 2021 and in 2022 , the reduction that company "B" may apply to its tax base will be limited to 90 percent. percent of the part of the profit obtained that is not subject to distribution:
Limit: 90% x 1,000,000 euros = €900,000.
Exercise 2021 :
Company "B" does not make a provision to the RIC in this year, so will not have to complete the row "Amount of the RIC provision charged to profits for 2021 » from the table «Special regime of the reserve for investments in the Canary Islands (Law 19/1994)» on page 22 of model 200.
In addition, must not complete the box [00404] “Reserve for investments in the Canary Islands (Law 19/1994)” (negative adjustment) on page 13 of form 200, since it will not be reduced the tax base for the year 2021 due to the allocation to the RIC.
The amount invested in advance in fiscal year 2021 is 1,000 euros, so remains pending to fund the RIC charged to profits obtained in the three subsequent tax periods to 2021 for this amount . In this case, company "B" will have to complete the table relating to Advance Investments , specifically must be completed Advance investments row 2021 , the box corresponding to column «Forecast investments letters B bis, C and D, art. 27.4 Law 19/1994" for the amount of 1,000 euros , as well as, in that same row, box "Pending RIC provision at the end of the period » worth 1,000 euros . In addition, in the fiscal year 2021 must communicate the materialization and its financing system together with the Corporate Tax declaration.
In this way, the adjustment on page 13 and the table on page 22 of model 200 corresponding to fiscal year 2021 will be completed as follows:
| Detail of the corrections to the result of the P and G account (page 13 of model 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
0 |
Special regime of the reserve for investments in the Canary Islands (page 22 of model 200)
| Advance investments | Pending to provide RIC at the beginning of the period | Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Pending provision RIC at the end of the period |
|---|---|---|---|---|
| Early investments 2021 | --- | --- | 1,000 | 1,000 |
| Amount of the RIC endowment charged to benefits of 2021 | |
|---|---|
| [00927] | 0 |
Year 2022 :
Company "B" makes a contribution to the RIC in the amount of 1,000 euros from the profits of this year (it can make it because it meets the limit, since 1,000 euros < 900,000 euros), so You must enter an amount of 1,000 euros in the row «Amount of the RIC endowment charged to profits from 2022 » of the table «Special regime of the reserve for investments in the Canary Islands (Law 19/1994)» on page 22 of model 200.
In addition, must complete on page 13 of form 200, box [00404] “Reserve for investments in the Canary Islands (Law 19/1994)” (negative adjustment) in the amount of 1,000 euros , since it is the value of the reduction in the tax base for the year 2022 that is carried out for reasons of the endowment to the RIC.
In fiscal year 2022 company "B" does not make any investment , but will be considered materialized in this fiscal year 2022 the investment made in 2021 . Therefore, said company must complete in the first table on page 22 of Form 200 relating to the Special Regime of the reserve for investments in the Canary Islands (Law 19/1994) the column «Advanced investments considered materialization of the RIC in this settlement", in the row corresponding to RIC 2022 , for the amount that is considered materialized in 2022 for having been endowed with the RIC, that is, 1,000 euros.
Company "B" must also complete the table relating to Advance Investments. At the beginning of fiscal year 2022 the RIC is pending provision for an amount of 1,000 euros, due to the anticipated investment that was made in fiscal year 2021 . For this reason, company "B" must complete column "Pending RIC at the beginning of the period", in the row corresponding to RIC 2021 for the amount of 1,000 euros . The amount invested in 2021 was 1,000 euros and the endowment to the RIC in 2022 was 1,000 euros, so at the end of the fiscal year 2022 there is no pending provision of RIC for any amount. For this reason, company "B" should not complete the column "Pending provision of RIC at the end of the period", in the row corresponding to RIC 2021 .
In this way, the adjustment on page 13 and the table on page 22 of model 200 corresponding to fiscal year 2021 will be completed as follows:
| Detail of the corrections to the result of the P and G account (page 13 of model 200) | ||||
|---|---|---|---|---|
| Canary Islands investment reserve (Law 19/1994) | [00403] | --- | [00404] | 1,000 |
Special regime of the reserve for investments in the Canary Islands (page 22 of model 200)
| RIC | Pending materialization RIC at beginning of period | Applied / materialized in this settlement | Pending materialization RIC at the end of the period | ||||
|---|---|---|---|---|---|---|---|
| Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Anticipated investments considered materialization of the RIC in this liquidation | |||||
| RIC 2021 | --- | --- | --- | --- | --- | ||
| RIC 2022 | --- | --- | --- | 1,000 | --- | ||
| Amount of the RIC endowment charged to 2021 benefits | |
|---|---|
| [00927] | 1,000 |
| Advance investments | Pending to provide RIC at the beginning of the period | Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Pending provision RIC at the end of the period |
|---|---|---|---|---|
| Early investments 2021 | 1,000 | --- | --- | 0 |
| Anticipated investments 2022 | --- | --- | --- | --- |
Example 3
In the tax period that began on January 1, 2020 , company "C", domiciled in the Canary Islands, acquires, for 1,000 euros, a tangible asset that contributes to improving the environment in the Canary Islands. .
Company "C" makes an allocation to the RIC in the amount of 200 euros from the profits for fiscal year 2020 .
In fiscal year 2021 , company "C" does not make any investment in which the RIC could materialize, although, charged to the profits of this fiscal year, said company makes an allocation to the RIC for the amount of 600 euros.
In fiscal year 2022 , company "C" does not make any investment in which the RIC could materialize, although, charged to the profits of this fiscal year, said company makes an allocation to the RIC for the amount of 800 euros.
Both in fiscal year 2020 and in fiscal years 2021 and 2022 , company "C" has profits that are not subject to distribution of 1,000. 000 euros.
Both in fiscal year 2020 and in fiscal years 2021 and 2022 , the reduction that company "C" may apply to its tax base will be limited to 90 percent of the part of the profit obtained that is not subject to distribution:
Limit: 90% x 1,000,000 euros = €900,000.
Exercise 2020 :
Company "C" made a contribution to the RIC in the amount of 200 euros from the profits of this year (it can make it because it meets the limit, since 200 euros < 900,000 euros), therefore must enter an amount of 200 euros in the row «Amount of the RIC endowment charged to profits from 2020 » of the table «Special regime of the reserve for investments in Canary Islands (Law 19/1994)» on page 22 of model 200.
In addition, must complete on page 13 of form 200, box [00404] “Reserve for investments in the Canary Islands (Law 19/1994)” (negative adjustment) for the amount 200 euros , since it is the value of the reduction in the tax base for the year 2020 that was made due to the endowment to the RIC.
In 2020 company "C" must complete the column # in the first table on page 22 of Form 200 related to the Special Regime of the reserve for investments in Canary Islands (Law 19/1994). "Advance investments considered materialization of the RIC in this settlement", ##2##in the row corresponding to the RIC 2020 , period in which the investment was made, for the amount that is considered materialized in 2020 due to the RIC having been provided, that is, 200 euros .
The amount invested in advance in the year 2020 is 1,000 euros , as RIC has provided in 2020 for the amount of 200 euros, it remains to fund the RIC with a charge to the profits obtained in the three tax periods after 2020 for the amount of 800 euros. In this case, company "C" must complete the table relating to Advance investments on page 22 of Form 200, specifically, it will have to complete box "Investments anticipated 2020 » of column «Planned investments letters B bis, C and D, art. 27.4 Law 19/1994", for the amount of 1,000 euros , as well as the column "Pending RIC provision at the end of the period" in the row relative to «Advance investments 2020 » in the amount of 800 euros . Furthermore, in the year 2020 , must communicate the materialization and its financing system together with the Corporate Tax declaration.
In this way, the adjustment on page 13 and the table on page 22 of model 200 corresponding to fiscal year 2020 will be completed as follows:
| Detail of the corrections to the result of the P and G account (page 13 of model 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
200 |
| RIC | Pending materialization RIC at beginning of period | Applied / materialized in this settlement | Pending materialization RIC at the end of the period | ||||
|---|---|---|---|---|---|---|---|
| Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Anticipated investments considered materialization of the RIC in this liquidation | |||||
| RIC 2020 | --- | --- | --- | 200 | --- | ||
| Amount of the RIC endowment charged to benefits of 2020 | |
|---|---|
| [00927] | 200 |
| Advance investments | Pending to provide RIC at the beginning of the period | Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Pending provision RIC at the end of the period |
|---|---|---|---|---|
| Advance investments 2020 | --- | --- | 1,000 | 800 |
Exercise 2021 :
Company "C" makes a contribution to the RIC in the amount of 600 euros from the profits of this year (it can make it because it meets the limit, since 600 euros < 900,000 euros), so You must enter an amount of 600 euros in the row «Amount of the RIC endowment charged to profits of 2021 » of the table «Special regime of the reserve for investments in the Canary Islands (Law 19/1994)» on page 22 of model 200.
In addition, must complete on page 13 of form 200, box [00404] “Reserve for investments in the Canary Islands (Law 19/1994)” (negative adjustment) in the amount of 600 euros , since it is the value of the reduction in the tax base for the year 2021 that was carried out due to of the endowment to the RIC.
In fiscal year 2021 company “C” does not make any investment , but will be considered materialized in this fiscal year 2021 part of the investment made in 2020 . Therefore, said company must complete in the first table on page 22 of Form 200 relating to the Special Regime of the reserve for investments in the Canary Islands (Law 19/1994) the column «Advanced investments considered materialization of the RIC in this settlement", in the row corresponding to RIC 2021 , for the amount that is considered materialized in 2021 for having received the RIC, that is, 600 euros.
At the beginning of fiscal year 2021 the RIC is pending provision for an amount of 800 euros, due to the anticipated investment that was made in fiscal year 2020 . For this reason, company "C" must complete in the table relating to Advance Investments the column "Pending RIC provision at the beginning of the period", in the row corresponding to RIC 2020 for the amount of 800 euros . The amount invested in advance in fiscal year 2020 was 1,000 euros and the endowment to the RIC in fiscal year 2020 was 200 euros, in 2021 is 600 euros, so at the end of the 2020 financial year, RIC remains to be provided in the amount of 200 euros .
In this way, the adjustment on page 13 and the table on page 22 of model 200 corresponding to fiscal year 2021 will be completed as follows:
| Detail of the corrections to the result of the P and G account (page 13 of model 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
600 |
| RIC | Pending materialization RIC at beginning of period | Applied / materialized in this settlement | Pending materialization RIC at the end of the period | ||||
|---|---|---|---|---|---|---|---|
| Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Anticipated investments considered materialization of the RIC in this liquidation | |||||
| RIC 2020 | --- | --- | --- | --- | --- | ||
| RIC 2021 | --- | --- | --- | 600 | --- | ||
| Amount of the RIC endowment charged to benefits of 2021 | |
|---|---|
| [00927] | 600 |
| Advance investments | Pending to provide RIC at the beginning of the period | Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Pending provision RIC at the end of the period |
|---|---|---|---|---|
| Advance investments 2020 | 800 | --- | --- | 200 |
| Early investments 2021 | --- | --- | --- | --- |
Year 2022 :
Company "C" will make a contribution to the RIC in the amount of 800 euros from the profits of this year (it can make it because it meets the limit, since 800 euros < 900,000 euros), so You must enter an amount of 800 euros in the row “Amount of the RIC endowment charged to the benefits of 2022 » from the table «Special regime of the reserve for investments in the Canary Islands (Law 19/1994)» on page 22 of model 200.
In addition, must complete on page 13 of form 200, box [00404] “Reserve for investments in the Canary Islands (Law 19/1994)” (negative adjustment) for the amount 800 euros , since it is the value of the reduction in the tax base for the year 2022 that was carried out due to the endowment to the RIC.
In fiscal year 2022 company “C” does not make any investment , but will be considered materialized in this fiscal year 2022 part of the investment made in 2020 . Therefore, said company must complete in the first table on page 22 of Form 200 relating to the Special Regime of the reserve for investments in the Canary Islands (Law 19/1994) the column «Advanced investments considered materialization of the RIC in this settlement", in the row corresponding to RIC 2022 , for the amount that is considered materialized in 2022 for having been endowed with the RIC, that is, 200 euros.
Regarding the table relating to Advance Investments , at the beginning of the year 2022 is pending to provide the RIC with an amount of 200 euros , due to the anticipated investment that was made in fiscal year 2020 . For this reason, company "C" must complete the column "Pending RIC at the beginning of the period" , in the row corresponding to the RIC 2020 for the amount of 200 euros .
The amount invested in 2020 was 1,000 euros and the endowment to the RIC in 2020 was 200 euros, in 2021 of 600 euros and in 2022 of 800 euros, therefore, in the table relating to Advance Investments there is no pending provision of RIC for no amount, at the end of the financial year 2022 . For this reason, company "C" must not complete the box "Pending RIC at the end of the period", in the row corresponding to the RIC 2020 .
Although in the year 2022 , a total reserve of 800 euros will be allocated , of which 200 euros correspond to the materialization of anticipated investments made in the year 2020 , so an amount of 600 euros would remain pending materialization in subsequent periods . For this reason, company "C" must complete, in the first table on page 22 of Form 200, column "Pending materialization of RIC at the end of the period", in the row corresponding to the RIC 2022 for the amount of 600 euros .
| Detail of the corrections to the result of the P and G account (page 13 of model 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
800 |
| RIC | Pending materialization RIC at beginning of period | Applied / materialized in this settlement | Pending materialization RIC at the end of the period | ||||
|---|---|---|---|---|---|---|---|
| Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Anticipated investments considered materialization of the RIC in this liquidation | |||||
| RIC 2020 | --- | --- | --- | --- | --- | ||
| RIC 2021 | --- | --- | --- | --- | --- | ||
| RIC 2022 | --- | --- | --- | 200 | 600 | ||
| Amount of the RIC endowment charged to benefits of 2022 | |
|---|---|
| [00927] | 800 |
| Advance investments | Pending to provide RIC at the beginning of the period | Planned investments letters A and B, art. 27.4 Law 19/1994 | Planned investments letters B bis, C and D, art. 27.4 Law 19/1994 | Pending provision RIC at the end of the period |
|---|---|---|---|---|
| Advance investments 2020 | 200 | --- | --- | 0 |
| Early investments 2021 | --- | --- | --- | --- |
| Anticipated investments 2022 | --- | --- | --- | --- |