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V3871-15 3 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · zona especial canaria

ZEC investment requirement not breached if delay in commencement of operations is due to causes beyond the taxpayer's control

The applicant inquired whether a delay in the construction of their factory would prevent compliance with the investment requirements of the Canary Special Zone (ZEC). The Directorate-General for Taxes (DGT) ruled that no breach occurs if the delay is due to the nature of the project or circumstances beyond the taxpayer's control.

The question raised

It is asked whether the investment requirement can be considered fulfilled in accordance with the provisions of Article 31.2.d) of Law 19/1994.

The DGT's ruling

The investment requirement stipulates that the fixed assets must be located, used, and assigned to the activity within the ZEC. However, there shall be no non-compliance if the taxpayer has a serious intention to invest and the delay in commencement of operations is due to the characteristics of the asset or special circumstances of the production process. In the case of protracted construction projects, the two-year period shall not be breached provided that the project is completed within a reasonable timeframe and the investments are carried out without anomalous interruptions attributable to the taxpayer.

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