Rules for determining the minimum tax liability

Firstly, the gross tax liability will be reduced by the amount of the applicable allowances, including those regulated in Law 19/1994, of 6 July, amending the Canary Islands economic and tax system, and by the amount of the deduction provided for in Article 38 bis of Law 27/2014.

Secondly, the deductions for double taxation regulated in articles 31, 32 and 100 and the twenty-third transitory provision of Law 27/2014 will be applied, respecting the limits applicable in each case.

If as a consequence of the previous operations:

• The amount is lower than the minimum net tax liability calculated in accordance with the above paragraphs, this amount will be considered as the minimum net tax liability, as an exception.

• The amount is greater than the amount of the minimum net tax liability calculated in accordance with the above paragraphs, the remaining deductions that may be applicable shall be applied, with the limits applicable in each case, up to the amount of the said minimum net tax liability.

The deductions whose amount is determined in accordance with the provisions of Law 20/1991, of 7 June, amending the tax aspects of the Canary Islands economic and tax system, and Law 19/1994, of 6 July, amending the Canary Islands economic and tax system, shall be applied, respecting their own limits, even if the resulting net tax liability is lower than the aforementioned minimum tax liability.

Amounts not deducted by application of the above rules may be deducted in subsequent tax periods in accordance with the regulations applicable in each case.