News published in INFORMA 2018

New features introduced in the INFORMA programme during DECEMBER

With effect for tax periods beginning on or after 7 November 2018, in the case of Shipping Companies to which the bonus established in Article 76, sections 1 and 2, of Law 19/1994, amending the Economic and Tax Regime of the Canary Islands, applies, to calculate the fractional payment, the positive result will be taken exclusively from non-bonus income.

With effect for tax periods beginning on or after 1 January 2018, the application of the special tax rate in the case of branches of the ZEC of entities with tax residence in Spain will not prevent said entities from forming part of a tax group that applies the tax consolidation regime provided for in Chapter VI of Title VII of Law 27/2014.

With effect for tax periods beginning on or after 7 November 2018, entities that hire a worker to carry out their activity in the Canary Islands will be entitled to the deduction for job creation established by tax regulations in accordance with the requirements established therein, increasing them by 30 percent.

With effect for tax periods beginning on or after 7 November 2018, the minimum amount of the deduction for expenses incurred in the production and exhibition of live performing arts and music shows referred to in section 3 of article 36 of Law 27/2014 is set at 900,000 euros for expenses incurred in the Canary Islands.

With effect for tax periods beginning on or after 7 November 2018, the minimum expenditure amount established in section 2 of article 36 of Law 27/2014, in the case of the execution of post-production or animation services for a foreign production, is set at 200,000 euros for expenses incurred in the Canary Islands.

With effect for tax periods beginning on or after 7 November 2018, the amount of the deduction for expenses incurred in the Canary Islands for foreign productions of feature films or audiovisual works referred to in section 2 of article 36 of Law 27/2014 on Corporate Income Tax will be increased from 4.5 to 5.4 million euros.

With effect for tax periods beginning on or after 7 November 2018, the amount of the deduction for investments in Spanish productions of feature films and audiovisual series of fiction, animation or documentaries, referred to in section 1 of article 36 of Law 27/2014, on Corporate Income Tax, made in the Canary Islands, is increased from 4.5 to 5.4 million euros.

With effect for tax periods beginning on or after 7 November 2018, the joint limit on the tax rate on the islands of La Palma, La Gomera and El Hierro is raised when it concerns investments contemplated in Law 2/2016 and other laws on measures for the regulation of economic activity on these islands.

If the management of leases is outsourced to a company that has material and human resources, what is relevant, for the purposes of determining whether there is economic activity, is that the manager must have at least one person employed with a full-time employment contract for the management of leases.

A company that is dedicated to leasing real estate and employs two people part-time does not meet the requirements of article 5.1 LIS for the purposes of considering that there is economic activity.