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V0171-15 19 January 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por inversiones

Applicability of investment deduction in Canary Islands for used fixed assets governed by 1996 regulations

A company asks whether it can claim the Canary Islands investment deduction for the purchase of used fixed assets in 2010. The DGT states that applicability must be assessed under the rules in force in 1996.

The question raised

1. Whether the deduction for investments in the Canary Islands is applicable to investments made in used fixed assets acquired in the year 2010, considering the requirement of clear technological improvement for the acquiring company to be met in accordance with the provisions of Article 2.Two of Royal Decree 241/1992, of March 13, which develops Law 20/1991, of June 7.

The DGT's ruling

To determine the applicability of the deduction for the acquisition of fixed assets in the Canary Islands, the regulations in force during the 1996 fiscal year must be applied. This includes the twelfth additional provision of Law 43/1995 and the specificities of Article 94 of Law 20/1991. According to these regulations, investments in used fixed assets are eligible if they represent a clear technological improvement for the company.

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