RESERVE FOR INVESTMENTS IN THE CANARY ISLANDS (RIC)

RESERVE FOR INVESTMENTS IN THE CANARY ISLANDS (RIC)

ROYAL DECREE-LAW 39/2020, of 29th December, on financial measures for social and economic support and for the compliance with the enforcement of judgements.

We would like to inform you that today the Royal Decree Law 39/2020, of 29th December, on financial measures for social and economic support and for the compliance with the enforcement of judgements has been published in the State Official Gazette, including several new measures adopted by the Council of Ministers during their meeting held yesterday, 29th December 2020.

Among these measures, we consider of special relevance that the deadlines to carry out the materialization of the Reserve for Investments in the Canary Islands (RIC), endowed with the benefits obtained in tax periods that started in 2016 and for the upfront investments made in 2017, have been extended for one year.

This is due to the introduction of an eighth temporary provision in Law 19/1994, of 6th July, on the modification of the Economic and Tax Regime of the Canary Islands, which has the following wording:

“Eighth temporary provision. Extension of deadlines in relation to the Reserve for Investments in the Canary Islands.

1. The maximum term referred to in paragraph 4 of article 27 of Law 19/1994, of 6th July, on the modification of the Economic and Tax Regime of the Canary Islands, shall be four years for the amounts aimed for the reserve for investments in the Canary Islands, which, under the terms indicated in the corresponding regulations, is endowed with the benefits obtained in tax periods that started in 2016.

2. The term referred to in subparagraph one, paragraph 11, article 27 of Law 19/1994, of 6th July, shall be four years for upfront investments made in 2017.”

Our firm remains at your entire disposition in order to discuss, clarify or assist you in any matter you require in relation to this important and awaited news, which we understand will help us to face the complicated situation we are currently going through with optimism.