Canaries Investment Reserve (RIC)
This tax incentive allows a reduction in the taxable income under Corporate Income Tax of up to 90% of undistributed profit. Producers can attract RIC from other companies to invest in their productions provided that they obtain the Canary Islands Audiovisual Production Certificate* granted by the Government of the Canary Islands. The RIC may be applied for feature films, short films and live action, animated and documentary audiovisual series, provided that they have been produced in the Canary Islands.
Deduction for R+D and Deduction for IT: up to 75%
As in the case of the rest of Spain, but with a much higher percentage, a deduction exists for activities classified as Research and Development directly executed in the Canary Islands: 45% deduction of eligible expenditure compared to 25% in peninsular Spain and the Balearic Islands (up to 75.6% in the initial years of execution of the R+D project). The deduction for Technological Innovation in the Canary Islands is 45% (12% on the Peninsula and Balearic Islands). In the event that there is no other outstanding amount, an application may be made to the tax authorities for monetization of the remaining non-deducted amount. A reasoned report must be issued pre-assessing the R+D or IT component of the project to formalize the process. This deduction may be applied to R+D or IT developments, typically in the field of digital animation, post-production and video games.
Further information: Tax Incentives Gran Canaria