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Form 100. Personal Income Tax Declaration 2018 Acquisitions of fixed assets (25% deduction)

The fourth transitional provision of Law 19/1994, of July 6 (BOE of 7), provides that in the event of suppression of the general regime of deduction for investments, its future application in the Canary Islands, as long as a system is not established. equivalent substitute, will continue to be carried out in accordance with the regulations in force at the time of deletion.

For this reason, in the Canary Islands the deduction for investments in fixed assets is maintained, which has disappeared in the rest of the territory, according to its latest regulation, established in the twelfth Additional Provision of the Corporate Tax Law.

New fixed assets

25 per 100 of the amount of investments in new elements of tangible fixed assets, excluding land, used for the development of economic exploitation, that have been put to use may be deducted from the full quota. available in 2018.

Fixed assets used

Investments may also be made in used fixed asset elements , which had not previously enjoyed the deduction for investments in the rest of the national territory, when they represent an obvious technological improvement for the company, in the form and with the requirements established in Royal Decree 241/1992, of March 13 (BOE of March 14).

Deduction base

The basis of the deduction will be the acquisition price or production cost.

Investment maintenance

It will be a requirement to enjoy this deduction that the elements remain in operation in the company for five years, unless their useful life according to the amortization method, of those admitted for tax purposes, that is applied, is shorter.

Financial leasing

Investments made under a financial lease regime may benefit from this deduction, with the exception of buildings.

Maximum deduction limit

The amount of this deduction from the special regime for investments in the Canary Islands applied in the tax period may not exceed 50 per 100 of the quota resulting from reducing the sum of the full state and autonomous or complementary in the total amount of deductions for investment in habitual residence for investments and expenses in goods of cultural interest and deduction for investment in new or recently created companies.

This limit, which is applied independently of those applicable to investments under the general regime and to the other deductions of the special regime for investments in the Canary Islands, is calculated and applied by the program.

USED FIXED ASSETS (Royal Decree 241/1992)

For the purposes provided for in article 94.3 of Law 20/1991, of June 7, used fixed assets that belong to any of the following categories will be entitled to the investment deduction:

  1. Machinery, installations and tools.

  2. Equipment for information processing.

  3. Elements of internal and external transport, excluding vehicles that may be used by people directly or indirectly linked to the company.

Technological improvement

To be entitled to this deduction, the acquisition of the used fixed asset element must represent an evident technological improvement for the company, and this circumstance must be proven, in the event of verification or investigation of the taxpayer's tax situation, by justifying that the element object of the deduction will produce or has produced any of the following effects:

  1. Reduction in the unit production cost of the good or service.

  2. Improvement of the quality of the good or service.

Transferor Certification

The taxpayer must keep at the disposal of the Tax Administration certification issued by the transferor stating that the item object of the transfer has not previously enjoyed the deduction for investments or the Investment Provident Fund regime.