News published in INFORMA 2018

News published in INFORMA in April

Taxpayers residing in Canary Islands can deduct 15 per cent of amounts paid during the year for nursery expenses for their children (or for children of whom they are guardians or unpaid fostering) under 3 years of age with whom they live, with a maximum of 400 euros a year for each child. The amount of the expense must be justified through invoice that meets the conditions set in the Regulations through which invoicing obligations are regulated, approved by Royal Decree 1619/2012, of 30 November.

Taxpayers residing in Canary Islands can deduct 10 per cent of the amounts paid in 2017 for construction work and installations to adapt the home due to disability of the taxpayer or their spouse or a collateral or blood relative, or by marriage, including third degree relatives, that coexists with the taxpayer, in the same terms and with the same requirements entailed in Personal Income Tax State Law in force on 31 December 2012, which is why the deduction can be applied regardless of the date in which the works are started or finished.

Taxpayers residing in Canary Islands will be able to deduct 15 per cent, with the limit of 5 per cent of the full autonomous fee, of the following donations and contributions (considered in article 4 bis of the Rewritten Text of legal provisions of the Autonomous Community of Canary Islands with regard to yielded tax contributions).

Taxpayers residing in Canary Islands can deduct the amounts paid throughout the year for purchasing school materials, textbooks, transportation and school uniform, school canteens and educational support (private lessons), up to a maximum of 100 euros for the set of descendants or adopted children that meet the specified requirements. They are not entitled to the deduction of registration expenses, monthly payments nor extra-curricular activities.

Premiums satisfied for health insurances do not entitle you to the Canary Islands autonomous deduction for medical expenses. In the case of taxpayers who have healthcare policies subscribed and that satisfy medical professional fees that are reimbursed, totally or partially, by the insurance company you will be able to apply the deduction for the satisfied total amount, although it has been refunded.

The autonomous deduction for medical expenses is applied to professional fees paid for the rendering of services by medical or healthcare professionals, except for chemists. For these purposes, those healthcare professions included in Act 44/2003, of 21 November, on structuring of the healthcare professions, will be considered.

For the satisfied amount for a medical test carried out by a laboratory owned by a healthcare professional, not a chemist, set up legally to develop the activity, you will be able to apply the Canary Islands autonomous deduction for medical expenses. In the case that the test is carried out by a laboratory owned by a chemist or another professional that is not included in the healthcare professions, you will not be able to apply the deduction.

In order to be able to apply the autonomous deduction for expenses in infant, primary, compulsory secondary education, baccalaureate and intermediate level vocational training, the amount of the expenses must be justified with an invoice. Nonetheless, when the schools themselves receive from parents the amount for school materials, textbooks or canteen services by transfer or direct debit, the bank transfer note, bank account statement or receipt from the school secretary that meet the specified requirements will be permitted as proof of payment.

Works that are entitled to the autonomous deduction are those which involve refurbishing the inside of the property, modifying communal elements of the building that serve as necessary passing areas between the urban building or the street or those necessary for the application of electronic devices that serve to overcome sensory communication barriers or promote their safety. The need for the construction work must be accredited through a certificate or resolution issued by the competent authority.

Canary Islands autonomous deductions due to donations to non-profit and environmental awareness organisations are incompatible on the same contributed amounts to the same recipient with the deduction due to donations and contributions for cultural, sports, research or teaching purposes.

A taxpayer that rents a property for holiday use cannot apply the reduction of the 60% to property returns on equity since it is not aimed at satisfying a permanent need for housing but rather to cover a temporary need.