7.1.4 Bonus on income from sales of tangible assets produced in the Canary Islands (Art. 26 Law 19/1994)

This code will record the bonus on the fee regulated in article 26 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, in the following terms:

• Bonus percentage : 50%, without prejudice to the limits established in Community legislation that may affect it.

• Entities affected by : Taxpayers domiciled in the Canary Islands or domiciled in other territories who are dedicated to the production of goods affected by the tax relief in the Canary Islands, through a branch or permanent establishment.

• Bonus returns : Income derived from the sale of tangible assets produced by the entity itself in the Canary Islands, typical of agricultural, livestock, industrial and fishing activities, provided that, in the latter case, deep-sea fishing is landed in Canary Islands ports and handled or transformed in the archipelago.

• The bonus will not apply to income derived from the sale of tangible goods produced in the Canary Islands, typical of shipbuilding, synthetic fibres, the automobile industry, steel and coal industries.

• This bonus will be applied provided that it is not excluded from its application due to incompatibility between State aid or conditioned by the provisions of the corresponding Community guidelines, or its enjoyment is prevented until the reimbursement of the State aid received and declared illegal and incompatible with the common market.