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V3288-20 5 November 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · reserva para inversiones en canarias

Construction of service stations may qualify as initial investment for the RIC, but is incompatible with investment tax relief

An entity enquired whether the construction of new service stations could be used to materialise the Canary Islands Investment Reserve (RIC) and whether investment tax relief could be applied. The DGT indicates that construction constitutes an eligible initial investment for the RIC, but warns that investment tax relief cannot be claimed on the same assets.

The question raised

1. Whether entity A could benefit, through the reduction of the tax base of the tax group, from the amount of the provisions derived from the application of the investment reserve in the Canary Islands, by materializing the corresponding provisions in the construction of new service stations to be operated by B.

The DGT's ruling

The construction of new service stations is considered an initial investment for the RIC provided that it results in an increase in the value of the establishment's assets. However, the RIC is incompatible with the deduction for investments regulated in Article 94 of Law 20/1991 for the same goods and expenses. Therefore, if the deduction for investments is applied, such investments may not constitute the RIC.

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