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Form 100. Personal Income Tax Declaration 2018

9.9.2.1. Provisions to the reserve for investments in the Canary Islands

Taxpayers covered by the Reserve for Investments in the Canary Islands regime will enter, through a data capture window, the following information:

Reserve for Investments in the Canary Islands , 2015 to 2018:

  • Provision to the reserve in the years 2015 to 2018: The provisions with the right to deduction made in these years will be recorded.

  • Materializations in 2018: You must enter in the corresponding section of the window the materializations made with charge to the provisions for the years 2015 to 2018.

    For these purposes, depending on the nature of the investments, the data capture window distinguishes between:

    • investments provided for in article 27.4. A), B) and D) 1 , Law 19/1994.

    • investments provided for in article 27.4. C) and D) 2 to 6 , Law 19/1994.

Pending materialization

The amount of the Reserve pending materialization as of December 31, 2018 will also be stated.

Once this section is completed, the result of the deduction is transferred to boxes 0525 and 0526 on page 16 of the declaration.

Reserve for Investments in the Canary Islands 2018:

  • Performance of establishments in the Canary Islands: The operating income for the year derived from establishments located in the Canary Islands will be recorded.

  • Provision to the reserve in 2018: The provisions with the right to deduction made in 2018 will be recorded.

  • Materializations in 2018: You must enter in the corresponding section of the window the materializations carried out with charge to the allocation for fiscal year 2087.

For these purposes, depending on the nature of the investments, the data capture window distinguishes between:

  • investments provided for in article 27.4. A), B) and D) 1 , Law 19/1994.

  • investments provided for in article 27.4. C) and D) 2 to 6 , Law 19/1994.

  • Pending materialization

    The amount of the Reserve pending materialization as of December 31, 2018 will also be stated.

    Once this section is completed, the result of the deduction is transferred to boxes 0525 and 0526 on page 16 of the declaration.

Information about calculations

For information purposes only, the data capture window shows the calculations performed by the program, both in the joint return and in the individual returns of the filer and the spouse.

INVESTMENTS IN WHICH THE PROPOSALS MADE CAN BE MATERIALIZED

The contributions to the reserve may materialize in any of the following investments when the requirements of article 27.4 of Law 19/1994 of the Canary Islands Tax Regime are met:

  1. Initial investments consisting of the acquisition of new assets of tangible or intangible fixed assets as a result of:

    • The creation or expansion of an establishment.

    • The diversification of the activity of an establishment for the production of new products.

    • The substantial transformation in the production process of an establishment.

    • Investments in land, built or not, provided that they have not previously benefited from this regime and are affected:

      1. To the promotion of protected housing and intended for rental by the promoting company.

      2. To the development of industrial activities included in divisions 1 to 4 of the first section of the rates of the Tax on Economic Activities.

      3. To commercial areas and tourist activities in the terms established in article 27.4 of Law 19/1994 of the Economic and Fiscal Regime of the Canary Islands.

  2. Creation of jobs directly related to the investments provided for in letter A, which occurs within a period of six months from the date of entry into operation of said investment.

  3. Acquisition of assets of tangible or intangible fixed assets that cannot be considered an initial investment because they do not meet any of the conditions established in letter A above, investment in assets that contribute to the improvement and protection of the environment in the Canary Islands. , as well as those research and development expenses that are determined by regulation.

  4. Subscription of:

    1. Shares or participations in the capital issued by companies as a result of their constitution or capital increase that carry out their activity in the archipelago, provided that the requirements established in article 27.4 of Law 19/1994 are met.

    2. Shares or participations in the capital issued by entities of the Canary Islands Special Zone as a consequence of their constitution or capital increase, provided that the requirements and conditions established in number 1 above and those provided for in Chapter I of Title V of the Law 19/1994.

      Additionally, the following conditions must be met:

      The amount of the issue or capital increase will be greater than 750,000 euros.

      At least 10% of the issue or capital increase will be subscribed by some person or entity that does not materialize amounts destined for the reserve for investments in the Canary Islands and will be disbursed immediately after the granting of the deed of incorporation or capital increase. capital.

    3. Shares or participations in the capital or equity issued by venture capital companies and funds regulated by Law 25/2005, Regulatory of Venture Capital Entities and their Management Companies, and in investment funds regulated by Law 35/ 2003, of Collective Investment Institutions, as a consequence of their constitution or capital increase, provided that the venture capital entities and the invested investment funds invest an equivalent amount of the shares acquired in shares or participations representing the capital of the companies to referred to in numbers 1 and 2 of this letter that comply with the requirements established therein, issued on the occasion of its constitution or capital increase.

    4. Public debt securities of the Autonomous Community of the Canary Islands, of the Canary Islands Local Corporations or of their public companies or autonomous bodies, provided that it is intended to finance investments in infrastructure and equipment or improvement and protection of the environment in the territory. Canary Islands, with a limit of fifty percent of the provisions made in each financial year.

    5. Securities issued by public bodies that proceed to the construction or exploitation of infrastructure or equipment of public interest for the public administrations in the Canary Islands, when the financing obtained with said issue is exclusively allocated to such construction or exploitation, with a limit of fifty percent of the allocations made in each year.
    6. Securities issued by entities that proceed with the construction or exploitation of infrastructure or equipment of public interest for the public administrations in the Canary Islands, when the financing obtained with said issue is destined exclusively for such construction or exploitation, with a limit of fifty percent. percent of the allocations made in each financial year and in the terms provided by regulation.