EMC CANARIAS
BONUS 50%
for the Production of Material and Consumer Goods.
PRODUCTION BONUS
The production bonus is an important incentive of the Canary Islands Economic and Fiscal Regime (REF) which, unlike others such as the RIC or the Canary Islands Investment Deduction, does not require any investment.
This bonus is intended to encourage the production of tangible goods in the Canary Islands, and is a tax incentive that reduces the corporate tax rate and, if applicable, the IRPEF income tax rate by 50 percent.
The production bonus is included in Article 26 of Law 19/1994 of July 6, the main requirements of which are:
- Be a taxpayer of corporate tax or personal income tax when determining returns by the direct estimation method.
- Selling tangible goods produced in the Canary Islands alone, typical of agricultural, livestock, industrial and fishing activities, deep-sea fishing requires that it be landed in Canary ports and handled or processed in the archipelago;
- Construction activity is not included.
PRODUCTION BONUS BENEFICIARIES
Persons or entities domiciled in the Canary Islands or other territories that engage in the production of these goods in the archipelago through a branch or permanent establishment are eligible for this discount.
- Therefore, all companies that meet these requirements can benefit from this special regime for companies that produce tangible assets on the income from their sale, being able to apply a bonus of fifty percent of the whole share, but only on the part of it that corresponds proportionally to the returns from the indicated production activities.
If you are a business or self-employed person engaged in a processing activity, the production bonus is a very attractive incentive that does not require the maintenance of employment and investment, but rather the performance of a specific activity, and is also compatible with other REF tax instruments.