Scope

The deduction for the acquisition of new fixed assets continues to apply in the Canary Islands according to the regulations in force for the same in 1996, that is, in accordance with the Twelfth Additional Provision of Law 43/1995, of December 27, on Corporate Tax and the special features introduced by article 94 of Law 20/1991 and its implementing regulations.

The reason why this deduction continues to apply to investments made in the Canary Islands for the acquisition of new fixed assets is that the transitional provision of Law establishes that, in the event of the abolition of the General Deduction Regime for Investments regulated by Law 61/1978, of December 27, on Corporate Tax, its future application in the Canary Islands, as long as an equivalent substitute system is not established, will continue to be carried out in accordance with the regulations in force at the time of the abolition.

Law 61/1978, of December 27, was repealed by Law 43/1995 , of December 27, which in its Twelfth Additional Provision regulated the deduction for the acquisition of new fixed assets. Therefore, although this deduction was eliminated from the general corporate tax regime starting in 1997, in accordance with the fourth transitional provision of Law 19/1994, said deduction continues to be applied in the Canary Islands in accordance with the regulations in force for the same in 1996.