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V1468-18 30 May 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
OTRO · reserva para inversiones en canarias

RIC materialisation is valid if investment occurs within three years, even if the project starts operating later

A query was raised regarding whether complex projects requiring execution periods exceeding the Canary Islands Investment Reserve (RIC) deadline may be eligible. The DGT ruled that the investment must effectively be carried out within the three-year period, even if the project becomes operational at a later date due to objective circumstances.

The question raised

In the event that the financial institution specifies in the application submitted to the Government of the Canary Islands execution and commencement of operations deadlines for projects that, due to their nature as complex investments and administrative and financial requirements, exceed the materialization dates of the investors, whether such projects may be eligible for the materialization of the Canary Islands Investment Reserve, provided that the entity carrying out the private projects commences operations within the deadlines specified in the application, even if these deadlines exceed the expiration of the initial allocations.

The DGT's ruling

For the RIC to be considered materialized, the investment must be effectively carried out within the three-year period established by Law 19/1994. If the commencement of operations of the assets is delayed due to the complex nature of the project or special circumstances, there shall be no breach if a serious intention to materialize the reserve is demonstrated. In such cases, the materialization is valid for the amount invested within the legal period, regardless of whether operations commence later.

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