Deduction for activities related to technological innovation

Regulation: Article 35.2 LIS

• The increased percentages of article 94.1 a) of Law 20/1991 do not apply to this deduction , since the Thirteenth Additional Provision of Law 19/1994 establishes that 45 percent will be applied to the deduction for technological innovation activities carried out in the Canary Islands and that meet the criteria established for these deductions in article 35.2 of the LIS (see Chapter 6 of this Manual).

• However, the deduction for technological innovation activities continues to apply in the Canary Islands in accordance with the deduction regime in force at the time of the repeal of article 26 of Law 61/1978 with the specialities introduced by article 94 of Law 20/1991. Therefore, although the Thirteenth Additional Provision of Law 19/1994 establishes that the provisions of article 94.1.a) of Law 20/1991 on increased rates will not apply to this deduction, the increased limits of article 94.1 will apply. b) of Law 20/1991, therefore this deduction would be subject to the joint limit of 60/90 or 70/100 (La Palma, La Gomera and El Hierro) percent.

  In the event that the taxpayer exercises the option provided for in article 39.2 of the LIS , these deductions will not be subject to the joint limit of 60/90 or 70/100 (La Palma, La Gomera and El Hierro) percent established in article 94.1 b) of the LIS.