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V2438-17 2 October 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reserva para inversiones en canarias

Acquisition of an administrative concession may qualify as RIC initial or general investment

A company has enquired whether purchasing an administrative concession to operate a shopping centre qualifies for the Canary Islands Investment Reserve (RIC). The Directorate-General for Tax (DGT) has ruled that it may constitute initial investment if certain requirements are met or, alternatively, as general investment.

The question raised

1. Whether the purchase of the administrative concession from the current concessionaire can be considered valid for the materialization of the RIC, either as an initial investment under letter A of Article 27.4 of Law 19/1994 or as an investment provided for in letter C of said provision.

The DGT's ruling

The acquisition of an existing concession is not a new asset, and therefore does not constitute an initial investment unless the entity meets the conditions set forth in Article 108 of the TRLIS. If such conditions are met, it could be considered an initial investment (letter A) if it increases the value of the assets and the concession is depreciable, acquired from third parties under market conditions, and recorded in the assets. Otherwise, the investment falls under letter C of the regulation. As it is an intangible asset, the exclusion of land value does not apply.

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