J. RIC practical scenarios
Example 1
In the tax period beginning on January 1, 2024, company "A", domiciled in the Canary Islands, makes an allocation from the profits of the 2024 financial year to the RIC for the amount of 1,000 euros. During this same period, the company has profits that are not subject to distribution of 1,000,000 euros.
In the 2025 financial year, it acquires for 1,000 euros a tangible fixed asset that contributes to improving the environment in the Canary Islands territory.
As in the 2024 financial year, in the 2025 financial year company "A" has undistributed profits 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 portion of the profit obtained that is not subject to distribution:
Limit: 90% x 1,000,000 euros = €900,000.
Exercise 2024:
Company "A" makes an allocation to the RIC (Reserve for Investment in the Canary Islands) of 1,000 euros from the profits of the 2024 financial year (it can do so because it meets the limit, since 1,000 euros < 900,000 euros), therefore it must allocate an amount of 1,000 euros in the row "Amount of the RIC allocation charged to 2024 profits" from the table "Special regime of the reserve for investments in the Canary Islands (Law 19/1994)" on page 22 of form 200.
Besides, you 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 of the taxable base of the 2024 financial year that is made due to the allocation to the RIC.
However, an amount of 1,000 euros remains pending to be materialized in subsequent periods. For this reason, company "A" must complete, in the first box on page 22 of Form 200, the column "Pending the materialization of RIC in future periods," in the row corresponding to the RIC 2024 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 2024 financial year, as follows:
| Detail of the corrections to the P&L account result (page 13 of form 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
1,000 |
Special reserve regime for investments in the Canary Islands (page 22 of form 200)
| RIC | Pending materialization RIC at the 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 |
Early investments considered materialization of the RIC in this liquidation |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2024 | --- | --- | --- | --- | --- | 1,000 | ||
| Amount of the RIC allocation charged to 2024 profits | |
|---|---|
| [00927] | 1,000 |
Exercise 2025:
Company "A" does not make any allocation to the RIC in this fiscal year, therefore You will not need to complete the row "Amount of the RIC allocation charged to profits from 2025" from the table "Special regime of the reserve for investments in the Canary Islands (Law 19/1994)" on page 22 of form 200.
Besides, You will not need to complete the box [00404] "Reserve for investments in the Canary Islands (Law 19/1994)" (negative adjustment) on page 13 of form 200, since the taxable base for the 2025 financial year will not be reduced due to the allocation to the RIC.
Please note that the investment made by company B in the 2025 financial year is not considered an advance investment, since, although no RIC is allocated in 2025, the investment in this financial year is a materialization of the allocation of the reserve that was made in 2024.
At the beginning of fiscal year 2025 1,000 euros remain to be realized of the allocation to the RIC charged to the profits of 2024 made in the 2024 financial year, therefore company "A" must enter in the first table on page 22 of Model 200 relating to the Special Regime of the reserve for investments in the Canary Islands (Law 19/1994) the column "RIC pending materialization at the beginning of the period," in the row corresponding to the RIC 2024, the amount of 1,000 euros.
He amount invested in the 2025 fiscal year it is 1,000 euros, Therefore, company "A" must complete the first box on page 22 of Form 200 relating to the Special Regime for Investment Reserves in the Canary Islands (Law 19/1994) by entering in the column «Investments planned letters B bis, C and D, art. 27.4 Law 19/1994», in the row corresponding to the RIC 2024, the amount of the materialization, that is, 1,000 euros. In fiscal year 2025, the total amount of the allocation made during 2024 is realizedTherefore, there is nothing left to materialize for future exercises. For this reason, company "A" should not complete the column "Pending RIC materialization at the end of the period."
Therefore, the adjustment on page 13 and the table on page 22 of form 200 corresponding to the 2025 tax year will be completed as follows:
| Detail of the corrections to the P&L account result (page 13 of form 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
0 |
Special reserve regime for investments in the Canary Islands (page 22 of form 200)
| RIC | Pending materialization RIC at the 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 and DA 15 19/1994 |
Planned investments Letters B bis, C and D, art. 27.4 and DA 15 Law 19/1994 |
Early investments considered materialization of the RIC in this liquidation |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2024 | 1,000 | --- | 1,000 | --- | --- | 0 | ||
| Amount of the RIC allocation charged to the profits of 2025 | |
|---|---|
| [00927] | 0 |
Example 2
In the tax period beginning on January 1, 2024, company "B", based in the Canary Islands, acquires for 1,000 euros a tangible fixed asset that contributes to improving the environment in the Canary Islands territory.
Company "B" does not make any allocation to the financial year 2024 RIC.
In 2025, it does not make any investment in which the RIC can materialize, although, against the profits of 2025, company "B" records in 2025 an allocation to the RIC for the amount of 1,000 euros.
In both the 2024 and 2025 financial years, company "B" has non-distributable profits of 1,000,000 euros.
In both the 2024 and 2025 fiscal years, the reduction that company "B" may apply to its taxable base will be limited to 90 percent of the portion of the profit obtained that is not subject to distribution:
Limit: 90% x 1,000,000 euros = €900,000.
Exercise 2024:
Company "B" does not make any allocation to the RIC in this fiscal year, therefore you will not have to fill out the row "Amount of the RIC allocation charged to 2024 profits" from the table "Special regime of the reserve for investments in the Canary Islands (Law 19/1994)" on page 22 of form 200.
Besides, You will not need to complete the box [00404] «Reserve for investments in the Canary Islands (Law 19/1994)» (negative adjustment) on page 13 of form 200, since the taxable base for the 2024 financial year will not be reduced due to the allocation to the RIC.
The amount invested of in advance in the 2024 fiscal year it is 1,000 euros, so what remains pending RIC funding charged against profits obtained in the three subsequent tax periodsby 2024for this amount. In this case, company "B" will have to complete The table relating to anticipated investments, specifically, must be completed as follows: row Advance Investments 2024, the box corresponding to the column «Investments planned letters B bis, C and D, art. 27.4 Law 19/1994» for the amount of 1,000 euros, as well as, from that same row, the box "RIC allocation pending at the end of the period" valued at 1,000 euros. Furthermore, in fiscal year 2024 must communicate the materialization and its financing system together with the declaration of Corporate Income Tax.
Thus, the adjustment on page 13 and the table on page 22 of Form 200 for the 2024 financial year will be completed as follows:
| Detail of the corrections to the P&L account result (page 13 of form 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
0 |
Special reserve regime for investments in the Canary Islands (page 22 of form 200)
| Investments in advance |
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 end of period |
|---|---|---|---|---|
| Early investments 2024 | --- | --- | 1,000 | 1,000 |
| Amount of the RIC allocation charged to 2024 profits | |
|---|---|
| [00927] | 0 |
Exercise 2025:
Company "B" makes an allocation to the RIC (Reserve for Investment in the Canary Islands) of 1,000 euros from the profits of this financial year (it can do so because it meets the limit, since 1,000 euros < 900,000 euros), therefore must record an amount of 1,000 euros in the row "Amount of the RIC allocation charged to profits from 2025" from the table "Special regime of the reserve for investments in the Canary Islands (Law 19/1994)" on page 22 of form 200.
Besides, you 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 of the taxable base of the 2025 financial year that is made due to the allocation to the RIC.
In the 2025 fiscal year, company "B" does not make any investment, but will be considered materialized in this exercise 2025 the investment made in 2024. Therefore, the company must complete the column in the first box on page 22 of Form 200 relating to the Special Regime for Investment Reserves in the Canary Islands (Law 19/1994). "Advance investments considered as a materialization of the RIC in this settlement," in the row corresponding to the RIC 2025, for the amount that is considered to have been materialized in 2025 due to the RIC having been endowed, that is, 1,000 euros.
Company "B" must also complete the table relating to Advance investments. At the beginning of the 2025 financial year, the RIC is pending allocation of 1,000 euros, due to the advance investment made in the 2024 financial year. For this reason, company "B" must complete column "Pending RIC funding at the beginning of the period," in the row corresponding to the RIC 2024for the amount of 1,000 euros. The amount invested in 2024 was 1,000 euros and the allocation to the RIC in 2025 was 1,000 euros, so at the end of the 2025 financial year RIC funding is not pending. for no amount. For this reason, company "B" You will not need to complete the column "Pending RIC allocation at the end of the period", in the row corresponding to Advance Investments 2025.
Therefore, the adjustment on page 13 and the table on page 22 of form 200 corresponding to the 2025 tax year will be completed as follows:
| Detail of the corrections to the P&L account result (page 13 of form 200) | ||||
|---|---|---|---|---|
| Canary Islands investment reserve (Law 19/1994) | [00403] | --- | [00404] | 1,000 |
Special reserve regime for investments in the Canary Islands (page 22 of form 200)
| RIC | Pending materialization RIC at the 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 and DA 15 19/1994 |
Planned investments Letters B bis, C and D, art. 27.4 and DA 15 Law 19/1994 |
Early investments considered materialization of the RIC in this liquidation |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2024 | --- | --- | --- | --- | --- | --- | ||
| RIC 2025 | --- | --- | --- | 1,000 | --- | --- | ||
| Amount of the RIC allocation charged to the profits of 2025 | |
|---|---|
| [00927] | 1,000 |
| Investments in advance |
Pending to provide RIC at the beginning of the period |
Planned investments letters A and B, art. 27.4 and DA 15Law 19/1994 |
Planned investments letters B bis, C and D, art. 27.4 and DA 15Law 19/1994 |
Pending provision RIC at end of period |
|---|---|---|---|---|
| Early investments 2024 | 1,000 | --- | --- | 0 |
| Advance investments 2025 | --- | --- | --- | --- |
Example 3
In the tax period beginning on January 1, 2023, company "C", based in the Canary Islands, acquires for 1,000 euros a tangible fixed asset that contributes to improving the environment in the Canary Islands territory.
Company "C" makes an allocation to the RIC (Reserve for Investment in the Canary Islands) of 200 euros, charged to the profits of the 2023 financial year.
In the 2024 financial year, company "C" does not make any investment in which the RIC can be materialized, although, from the profits of this financial year, said company makes an allocation to the RIC in the amount of 600 euros.
In the 2025 financial year, company "C" does not make any investment in which the RIC can be materialized, although, from the profits of this financial year, said company makes an allocation to the RIC in the amount of 800 euros.
In both the 2023 and 2024 and 2025 fiscal years, company "C" has undistributed profits of 1,000,000 euros.
In both the 2023 and 2024 and 2025 tax years, the reduction that company "C" may apply to its taxable base will be limited to 90 percent of the portion of the profit obtained that is not subject to distribution:
Limit: 90% x 1,000,000 euros = €900,000.
Exercise 2023 :
Company "C" made an allocation to the RIC (Reserve for Investment in the Canary Islands) of 200 euros from the profits of this financial year (it can do so because it meets the limit, since 200 euros < 900,000 euros), therefore must record an amount of 200 euros in the row "Amount of the RIC allocation 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 form 200.
Besides, you 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 200 euros, since it is the value of the reduction of the taxable base of the 2023 financial year that was made due to the allocation to the RIC.
In 2023, company "C" must complete the column in the first box on page 22 of Form 200 relating to the Special Regime for Investment Reserves in the Canary Islands (Law 19/1994). "Advance investments considered as a materialization of the RIC in this settlement," in the row corresponding to the RIC 2023, period in which the investment was made, for the amount that is considered materialized in 2023 because the RIC was endowed, that is to say, 200 euros.
The amount invested of in advance in the 2023 fiscal year it is 1,000 euros, as has been RIC endowed in 2023 for the amount of 200 euros, is left over pending funding the RIC charged to the profits obtained in the three tax periods after 2023 for an amount of 800 euros. In this case, the company "C" you must complete the table relating to Advance investments On page 22 of Form 200, specifically, you will have to fill in the box "Anticipated investments 2023" of the column «Investments planned letters B bis, C and D, art. 27.4 Law 19/1994», for the amount of 1,000 euros, as well as the column "RIC allocation pending at the end of the period" in the row relative to "Anticipated investments 2023" for the amount of 800 euros. Furthermore, in fiscal year 2023, must communicate the materialization and its financing system together with the declaration of Corporate Income Tax.
Thus, the adjustment on page 13 and the table on page 22 of Form 200 for the 2023 tax year will be completed as follows:
| Detail of the corrections to the P&L account result (page 13 of form 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
200 |
| RIC | Pending materialization RIC at the 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 |
Early investments considered materialization of the RIC in this liquidation |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2023 | --- | --- | --- | 200 | --- | --- | ||
| Amount of the RIC allocation charged to 2023 profits | |
|---|---|
| [00927] | 200 |
| Investments in advance |
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 end of period |
|---|---|---|---|---|
| Early Investments 2023 | --- | --- | 1,000 | 800 |
Exercise 2024:
Company "C" makes an allocation to the RIC (Reserve for Investment in the Canary Islands) of 600 euros from the profits of this financial year (it can do so because it meets the limit, since 600 euros < 900,000 euros), therefore must record an amount of 600 euros in the row "Amount of the RIC allocation charged to 2024 profits" from the table "Special regime of the reserve for investments in the Canary Islands (Law 19/1994)" on page 22 of form 200.
Besides, you 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 600 euros, since it is the value of the reduction of the taxable base of the 2024 financial year that was made due to the allocation to the RIC.
In the 2024 fiscal year, company "C" does not make any investmentbut it will be considered materialized in this fiscal year 2024 part of the investment made in 2023. Therefore, the company must complete the column in the first box on page 22 of Form 200 relating to the Special Regime for Investment Reserves in the Canary Islands (Law 19/1994). "Advance investments considered as a materialization of the RIC in this settlement," in the row corresponding to the RIC 2024, for the amount considered to have been materialized in 2024 due to the RIC having been endowed, that is, 600 euros.
At the beginning of fiscal year 2024 it is pending RIC funding for the amount of 800 euros, due to the advance investment which took place in the fiscal year 2023. For this reason, company "C" must complete the column in the table relating to Advance Investments "Pending RIC funding at the beginning of the period," in the row corresponding to the Advance Investments 2023for the amount of 800 euros. The amount invested in advance in the 2023 financial year was 1,000 euros and the allocation to the RIC in the 2023 financial year was 200 euros, in 2024 it is 600 euros, so at the end of the 2024 financial year, is left over pending RIC funding for the amount of 200 euros.
Therefore, the adjustment on page 13 and the table on page 22 of form 200 corresponding to the 2024 tax year will be completed as follows:
| Detail of the corrections to the P&L account result (page 13 of form 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
600 |
| RIC | Pending materialization RIC at the 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 |
Early investments considered materialization of the RIC in this liquidation |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2023 | --- | --- | --- | --- | --- | --- | ||
| RIC 2024 | --- | --- | --- | 600 | --- | --- | ||
| Amount of the RIC allocation charged to 2024 profits | |
|---|---|
| [00927] | 600 |
| Investments in advance |
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 end of period |
|---|---|---|---|---|
| Early Investments 2023 | 800 | --- | --- | 200 |
| Early investments 2024 | --- | --- | --- | --- |
Exercise 2025:
Company "C" will make an allocation to the RIC (Reserve for Investment in the Canary Islands) of 800 euros from the profits of this financial year (it can do so because it meets the limit, since 800 euros < 900,000 euros), therefore must record an amount of 800 euros in the row "Amount of the allocation" RIC charged against profits from 2025» from the table "Special regime of the reserve for investments in the Canary Islands (Law 19/1994)" on page 22 of form 200.
Besides, you 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 800 euros, since it is the value of the reduction of the taxable base of the 2025 financial year that was made due to the allocation to the RIC.
In the 2025 fiscal year, company "C" does not make any investmentbut it will be considered materialized in this exercise 2025 part of the investment made in 2023. Therefore, the company must complete the column in the first box on page 22 of Form 200 relating to the Special Regime for Investment Reserves in the Canary Islands (Law 19/1994). "Advance investments considered as a materialization of the RIC in this settlement," in the row corresponding to the RIC 2025, for the amount that is considered to have been materialized in 2025 due to the RIC having been endowed, that is, 200 euros.
Regarding the table relating to Advance investments, at the beginning of fiscal year 2025 is pending funding the RIC for the amount of 200 euros, due to the advance investment which took place in the fiscal year 2023. For this reason, company "C" must complete column "RIC funding pending at the beginning of the period", in the row corresponding to Advance Investments 2023 for the amount of 200 euros.
The amount invested in 2023 was 1,000 euros and the allocation to the RIC in 2023 was 200 euros, in 2024 600 euros and in 2025 800 euros, therefore, in the table relating to Advance Investments RIC funding is not pending. for no amount, by the end of fiscal year 2025. For this reason, the company "C" You will not need to complete the box "Pending RIC funding at the end of the period," in the row corresponding to Advance Investments 2023.
Although in fiscal year 2025, will be provided a total reservation of 800 euros, of which 200 euros correspond to the materialization of anticipated investments carried out in the fiscal year 2023so it would remain pending to materialize in subsequent periods an amount of 600 euros. For this reason, company "C" must complete, in the first box on page 22 of Form 200, the column "RIC pending materialization at the end of the period," in the row corresponding to the RIC 2025 for the amount of 600 euros.
| Detail of the corrections to the P&L account result (page 13 of form 200) | ||||
|---|---|---|---|---|
|
Canary Islands investment reserve (Law 19/1994) |
[00403] |
--- |
[00404] |
800 |
| RIC | Pending materialization RIC at the 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 |
Early investments considered materialization of the RIC in this liquidation |
Integrated into BI due to non-compliance with requirements | |||||
| RIC 2023 | --- | --- | --- | --- | --- | --- | ||
| RIC 2024 | --- | --- | --- | --- | --- | --- | ||
| RIC 2025 | --- | --- | --- | 200 | --- | 600 | ||
| Amount of the RIC allocation charged to the profits of 2025 | |
|---|---|
| [00927] | 800 |
| Investments in advance |
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 end of period |
|---|---|---|---|---|
| Early Investments 2023 | 200 | --- | --- | 0 |
| Advance investments 2024 | --- | --- | --- | --- |
| Advance investments 2025 | --- | --- | --- | --- |