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Practical Manual for Companies 2023.

A. Scope of application

Regulation: Article 27.1 Law 19/1994

  1. The following taxpayers may apply for RIC :

    1. Taxpayers who have their address in the Canary Islands.

    2. Taxpayers who do not have their domicile in the Canary Islands , when they operate in the Canary Islands through a permanent establishment.

    3. The entities not resident in Spanish territory , when they operate in the Canary Islands through permanent establishment , for the income obtained through it.

    4. Entities whose main activity is the provision of financial services or the provision of services to entities belonging to the same group of companies in the terms of article 18.2 of the LIS , when they materialize the provision in any of the initial investments referred to in article 7 of Royal Decree 1758/2007, of December 28, which approves the Regulation for the development of Law 19/1994, of July 6 (see also article 2 of this Regulation).

  2. portion of the profit obtained from shipbuilding, synthetic fibres, the automobile industry, the steel industry and the coal industry cannot be covered by the RIC regime. Therefore, the reduction cannot be applied to that portion of the profit (section 3 of the Eleventh Additional Provision of Law 19/1994, of 6 July).

  3. The application of the RIC is subject to compliance with the Community Guidelines on State aid to the agricultural, forestry, fisheries and aquaculture and transport sectors (additional provisions fourth to sixth of Royal Decree-Law 12/2006, of ).

  4. For tax periods beginning on or after 7 November 2018, it is established that, with effect from 1 January 2015, the application of the RIC only when it materialises in investments that are not considered initial , as well as that of the tax benefits that are considered regional operating aid established in Book II and in article 94 of Law 20/1991, in the Law of the Autonomous Community of the Canary Islands, 4/2014, of June 26, in article 26 and in Title V of Law 19/1994, and in the twelfth Additional Provision of Law 43/1995, of December 27, as well as aid for the transport of goods included in the scope of Royal Decree 362/2009, of 20 of March and the Order of July 31, 2009 of the Minister of Public Works and Transport of the Government of the Canary Islands, will be subject to the limit of 30 percent of the beneficiary's annual turnover obtained in the Canary Islands.