Skip to content
V4725-16 ·8 November 2016 ·consulta-vinculante Medium impact
Tax

Subsidies are excluded from the base for the tangible goods production tax relief in the Canary Islands, unless subject to pass-on requirements

A livestock farmer in the Canary Islands requested clarification on whether received subsidies count towards the tax relief under Article 26 of Law 19/1994, if they qualify for the Canary Islands Investment Reserve (RIC), and how to report them in Form 282. The DGT ruled that subsidies do not constitute business income unless there is an obligation to pass them on through prices, while confirming the eligibility of certain investments and the requirement to report them.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of subsidies for businesses in the Canary Islands, specifically regarding their exclusion from the tax relief base for tangible goods production, provided they are not passed on to customers.

Lifecycle

2016-11-08PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact