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V1916-14 16 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reserva para inversiones en canarias

Depreciation limitation adjustment does not affect the calculation of the Canary Islands investment reserve

A company has enquired whether the limitation on the deductibility of depreciation under Law 16/2012 should be applied when calculating the Canary Islands investment reserve (RIC). The Directorate General for Taxes (DGT) has ruled that such an adjustment must not be taken into account for this calculation.

The question raised

Whether the limitation on the deductibility of depreciation, established in Article 7 of Law 16/2012, of December 27, adopting various tax measures aimed at the consolidation of public finances and the tax on economic activity, must be taken into account for the calculation of the investment reserve in the Canary Islands.

The DGT's ruling

The limitation on the deductibility of depreciation established in Article 7 of Law 16/2012 constitutes a positive extra-accounting adjustment to the taxable base. This adjustment must not be taken into account for the calculation of the RIC reduction limit, as said reduction is calculated based on the amount of the entity's reserves and not on the Corporate Tax taxable base.

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