We can find this tax incentive on the article 94 of the Spanish Ley 20/1991, on the 4th Temporary Resolution of the Spanish Ley 19/1994, on the 6th of July and in the Twelfth Additional Resolution of the Spanish 43/1995, on the 28th December.

According to these resolutions, the societies and other juridical associations subject to Corporate Tax may obtain this deduction with the following conditions, whenever the investments are made and they remain in the Canary Islands:

» Deduction Percentages higher to those which are used in the rest of the whole country (80% over the general average with a minimum of 20 percentage points)

» The deductions have a maximum percentage higher for every category set by the common regime (80% over the common regime with a minimum of 35 percentage points).

In the Canary Islands the deduction for investment in new fixed assets is still in force. This deduction is not applicable to the rest of the whole country. This deduction consists on a 25% of the total amount of the investment with a limit of 50% over the whole share tax (this is produced after deductions for double taxation and improvements). Also, the new fixed assets can not be transferred before five years since its acquisition.