Deduction for job creation for disabled workers

Regulation: Articles 38 LIS and 94 Law 20/1991

a. Percentages

In the Canary Islands, the deduction for job creation for disabled workers is applied in article 38 of the LIS which establishes a deduction of 9,000 euros for each person/year of increase in the average number of disabled workers to a degree equal to or greater than 33 percent and less than 65 percent, compared to the average number of workers in the previous year. If the degree of disability is equal to or greater than 65 percent, the deduction will be 12,000 euros.

With effect for tax periods beginning on or after November 7, 2018 , ## Article 94 bis of Law 20/1991 , establishes that the amounts established in Article 38 of the LIS for this deduction, will be increased by 30 percent. In this way, in the Canary Islands the deductions for job creation for disabled workers of 9,000 and 12,000 euros will rise to 11,700 and 15,600 euros , respectively.

The increased percentages of article 94.1 a) of Law 20/1991 will not apply to this deduction , to the extent that the increase referred to in said letter only refers to deduction percentages and this deduction of article 38 of the LIS does not contain percentages, but rather fixed monetary amounts based on increases in staff, just like the deduction regulated in article 26 of the repealed Law 61/1978.

b. Limits

Regarding this deduction , the improvement in the deduction limits of article 94.1.b) of Law 20/1991 will apply, since article 26 of Law 61/1978, as already mentioned, contained a deduction for disabled workers at the time of its repeal. Therefore, this deduction will be subject to the joint limit of 60/90 or 70/100 (La Palma, La Gomera and El Hierro) percent.