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V0190-14 28 January 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reserva para inversiones en canarias

To maintain the Canary Investment Reserve, damaged assets must be replaced before the self-liquidation deadline

A company asks about the timeframe to replace assets lost to fire to preserve the Canary Investment Reserve (RIC) and how to account for insurance compensation. The DGT replies that replacement must take place before the deadline for submitting the self-liquidation for the insurance claim.

The question raised

1. What is the period for the replacement of assets lost due to an insured event for the purposes of the provisions of section 8 of the article of Law 19/1994, according to the wording given by Royal Decree-Law 12/2006?

The DGT's ruling

In order to comply with the retention requirement of the RIC, the lost asset must be replaced by another that meets the requirements of the reserve. This replacement must occur within the period between the loss and the commencement of the filing period for the tax self-assessment. Regarding the compensation, it must be recorded for accounting and tax purposes following the ICAC criteria, recognizing the income when the compensation is virtually certain.

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