I. RIC practical assumptions
Example 1
In the tax period beginning on January 1, 2022, company "A", domiciled in the Canary Islands, makes an allocation to RIC with a charge to the profits for fiscal year 2022 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 2023, it acquires a material asset for 1,000 euros that contributes to improving the environment in the Canary Islands.
As in fiscal year 2022, in fiscal year 2023 company "A" has profits that are not subject to distribution of 1,000,000 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.
Fiscal year 2022 :
Company "A" makes a contribution to the RIC for the amount of 1,000 euros from the profits for the 2022 financial year (it can make it because it complies with the limit, since 1,000 euros < 900,000 euros), so it must record an amount of 1,000 euros in row «Amount of the RIC endowment charged to 2022 profits» from the table «Special reserve regime 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 fiscal year 2022 that is made due to the allocation to the RIC.
However, an amount of 1,000 euros ## remains pending 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 2022 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 fiscal year 2022, 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 |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2022 | --- | --- | --- | --- | --- | 1,000 | ||
| Amount of the RIC endowment charged to 2022 benefits | |
|---|---|
| [00927] | 1,000 |
Fiscal year 2023 :
Company "A" does not make a provision to the RIC in this year, so should not complete row "Amount of the RIC provision charged to 2023 profits » 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 the page 13 of model 200, since the tax base for fiscal year 2023 will not be reduced due to the allocation to the RIC.
Keep in mind that the investment made by company B in fiscal year 2023 is not considered an anticipated investment, since, although RIC is not allocated in 2023, the investment in this fiscal year is a materialization of the provision of the reserve that was made. in 2022.
At the beginning of fiscal year 2023 1,000 euros of the allocation to the RIC with a charge to profits from >2022 made in fiscal year 2022 remain to be materialized, so company "A" must record 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 "Pending materialization of RIC at the beginning of the period", in the row corresponding to RIC 2022 , the amount of 1,000 euros.
The amount invested in fiscal year 2023 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 2022 , the amount of the materialization, that is, 1,000 euros . In fiscal year 2023, the total amount of the provision made during 2022 is materialized, so there is nothing pending to be materialized for future years. For this reason, company "A" should not complete the column "Pending materialization of RIC 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 the 2023 financial year 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 |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2022 | 1,000 | --- | 1,000 | --- | --- | 0 | ||
| Amount of the RIC endowment charged to 2023 benefits | |
|---|---|
| [00927] | 0 |
Example 2
In the tax period that began on January 1, 2022, company "B", domiciled in the Canary Islands, acquires property, plant and equipment for 1,000 euros that contributes to improving the environment in the Canary Islands.
Company "B" does not make any allocation to RIC in fiscal year 2022.
In 2023, it does not make any investment in which the RIC could materialize, although, with a charge to the 2023 profits, company "B" accounts for a contribution to the RIC in the amount of 1,000 euros in 2023.
In both 2022 and 2023, company "B" has profits that are not subject to distribution of 1,000,000 euros.
In both 2022 and 2023, the reduction that company "B" 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.
Fiscal year 2022 :
Company "B" does not make a provision to the RIC in this year, so will not have to complete 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 the page 13 of model 200, since the tax base for fiscal year 2022 will not be reduced due to the allocation to the RIC.
The amount invested in advance in fiscal year 2022 is 1,000 euros, so it remains to fund the RIC charged to profits obtained in the three subsequent tax periods to 2022 for this amount. In this case, company "B" will have to complete the table related to Advance Investments, specifically it must be completed in the Advance Investments 2022 row , the box corresponding to 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, in that same row, box "Pending RIC provision at the end of the period » worth 1,000 euros . Furthermore, in fiscal year 2022 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 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)
| 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 |
|---|---|---|---|---|
| Anticipated investments 2022 | --- | --- | 1,000 | 1,000 |
| Amount of the RIC endowment charged to 2022 benefits | |
|---|---|
| [00927] | 0 |
Fiscal year 2023 :
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), therefore must enter an amount of 1,000 euros in row "Amount of the RIC endowment charged to 2023 profits" 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 2023 that is made due to the allocation to the RIC.
In fiscal year 2023, company "B" does not make any investment , but will be considered materialized in fiscal year 2023 the investment made in 2022 . 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 the RIC 2023 , for the amount that is considered materialized in 2023 due to the RIC having been allocated, that is, 1,000 euros.
Company "B" must also complete the table relating to Advance investments. At the beginning of fiscal year 2023, the RIC is pending provision for an amount of 1,000 euros, due to the anticipated investment that was made in fiscal year 2022. For this reason, company "B" must complete column "Pending RIC provision at the beginning of the period", in the row corresponding to RIC 2022 for the amount of 1,000 euros . The amount invested in 2022 was 1,000 euros and the allocation to the RIC in 2023 was 1,000 euros, so at the end of the 2023 financial year there is no pending provision for RIC for any amount . For this reason, company "B" should not complete the column "Pending RIC at the end of the period", in the row corresponding to Advance Investments 2023.
In this way, the adjustment on page 13 and the table on page 22 of model 200 corresponding to the 2023 financial year 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 |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2022 | --- | --- | --- | --- | --- | --- | ||
| RIC 2023 | --- | --- | --- | 1,000 | --- | --- | ||
| Amount of the RIC endowment charged to 2023 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 |
|---|---|---|---|---|
| Anticipated investments 2022 | 1,000 | --- | --- | 0 |
| Anticipated investments 2023 | --- | --- | --- | --- |
Example 3
In the tax period that began on January 1, 2021, company "C", domiciled in the Canary Islands, acquires property, plant and equipment for 1,000 euros that contributes to improving the environment in the Canary Islands.
Company "C" makes a contribution to the RIC in the amount of 200 euros from its 2021 profits.
In fiscal year 2022, company "C" does not make any investment in which the RIC could materialize, although, out of the profits of this fiscal year, said company makes an endowment to the RIC in the amount of 600 euros.
In fiscal year 2023, company "C" does not make any investment in which the RIC could materialize, although, out of the profits of this fiscal year, said company makes an endowment to the RIC in the amount of 800 euros.
Both in fiscal year 2021 and in fiscal years 2022 and 2023, company "C" has profits that are not subject to distribution of 1,000,000 euros.
Both in fiscal year 2021 and in fiscal years 2022 and 2023, 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.
Fiscal year 2021 :
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 row «Amount of the RIC endowment charged to 2021 profits<» 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 200 euros , since it is the value of the reduction in the tax base for fiscal year 2021 that was made due to the allocation to the RIC.
In 2021, company "C" 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 "Advance investments considered materialization of the RIC in this settlement", in the row corresponding to the RIC 2021 , period in which the investment was made, for the amount considered materialized in 2021 for having provided the RIC , that is, 200 euros .
The amount invested in advance in fiscal year 2021 is 1,000 euros , as RIC has been allocated in 2021 for the amount of 200 euros , it remains to provide the RIC with a charge to the profits obtained in the three tax periods after 2021 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 fill in box «Anticipated investments 2021» in 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 relating to “Advance investments 2021” in the amount of 800 euros . Furthermore, in 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] |
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 |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2021 | --- | --- | --- | 200 | --- | --- | ||
| Amount of the RIC endowment charged to 2021 benefits | |
|---|---|
| [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 |
|---|---|---|---|---|
| Anticipated investments 2021 | --- | --- | 1,000 | 800 |
Fiscal year 2022 :
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 must enter an amount of 600 euros in row "Amount of the RIC endowment charged to 2022 profits" 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 fiscal year 2022 that was made due to the allocation to the RIC.
In fiscal year 2022, company "C" does not make any investment , but will be considered materialized in fiscal year 2022 part of 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 the RIC 2022 , for the amount that is considered materialized in 2022 due to the RIC having been allocated, that is, 600 euros.
At the beginning of fiscal year 2022 is pending to fund the RIC in the amount of 800 euros, due to the early investment that was carried out in fiscal year 2021 . 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 Advance Investments 2021 in the amount of 800 euros . The amount invested in advance in fiscal year 2021 was 1,000 euros and the endowment to the RIC in fiscal year 2021 was 200 euros, in 2022 it is 600 euros, so at the end of fiscal year 2022 , remains pending to provide RIC 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 the 2022 financial year 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 |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2021 | --- | --- | --- | --- | --- | --- | ||
| RIC 2022 | --- | --- | --- | 600 | --- | --- | ||
| Amount of the RIC endowment charged to 2022 benefits | |
|---|---|
| [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 |
|---|---|---|---|---|
| Anticipated investments 2021 | 800 | --- | --- | 200 |
| Anticipated investments 2022 | --- | --- | --- | --- |
Fiscal year 2023 :
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 must enter an amount of 800 euros in row «Amount of the RIC endowment charged to profits of 2023» 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 2023 that was made due to the allocation to the RIC.
In fiscal year 2023, company "C" does not make any investment , but will be considered materialized in fiscal year 2023 part of 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 the RIC 2023 , for the amount that is considered materialized in 2023 due to the RIC having been allocated, that is, 200 euros.
Regarding the table relating to Advance investments , at the beginning of fiscal year 2023, is pending to be allocated to the RIC in the amount of 200 euros , due to the early investment that was made in fiscal year 2021 . For this reason, company "C" must complete the column "Pending RIC at the beginning of the period" , in the row corresponding to Advance Investments 2021 for the amount of 200 euros .
The amount invested in 2021 was 1,000 euros and the endowment to the RIC in 2021 was 200 euros, in 2022 it was 600 euros and in 2023 it was 800 euros, therefore, in the table relating to Advance investments There is no pending provision of RIC for any amount at the end of the 2023 financial year. For this reason, company "C" should not complete the box "Pending RIC provision at the end of the period", in the row corresponding to the Early Investments 2021 .
Although in fiscal year 2023, will provide a total reserve of 800 euros , of which 200 euros correspond to the materialization of anticipated investments made in fiscal year 2021 , so it would remain pending materialization in subsequent periods an amount of 600 euros . 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 2023 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 |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2021 | --- | --- | --- | --- | --- | --- | ||
| RIC 2022 | --- | --- | --- | --- | --- | --- | ||
| RIC 2023 | --- | --- | --- | 200 | --- | 600 | ||
| Amount of the RIC endowment charged to 2023 benefits | |
|---|---|
| [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 |
|---|---|---|---|---|
| Early investments 2021 | 200 | --- | --- | 0 |
| Anticipated investments 2022 | --- | --- | --- | --- |
| Anticipated investments 2023 | --- | --- | --- | --- |