JOHN CARLOS I,

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following Law:

I

its conquest at the end of the fifteenth century, the Canary Islands have been enjoying an exceptional Fiscal Economic Regime with respect to the rest of the national territory. The island character, remoteness, special geographical, geological and climatic conditions, as well as the scarcity of natural resources, have historically advised the adoption of this specific regime in the field of economic and social legislation. Spanish prosecutor. This specialty and economic-fiscal exceptionality of the Canary Islands, has been adapting, over these almost five hundred years, to the circumstances of each epoch or historical moment. With the Royal Decree of 11 July 1852, it was set up as free ports to the "Santa Cruz de Tenerife, Orotava, Ciudad Real de Las Palmas, Santa Cruz de la Palma, Arrecife de Lanzarote, Puerto de Cabras and San Sebastián" (article 1), Thus, customs relief is incorporated as a fundamental and configurator of the tax regime applicable to the islands. These customs franchises were then extended by the Law of 10 June 1870 to the port of Valverde of the island of Hierro (Article 1), and to the other ports of the then province of the Canary Islands (Article 2), whose Aymarcias were committed to cover the costs of collection and administration of the branch. The Law of Free Ports of 6 March 1900 also confirmed these customs franchises, extending them to all the Canary Islands and extended the scope of the Canary Islands to tax on consumption, as confirmed by the Court itself. Supreme in the judgment of 8 April 1964. The Fiscal Economic Regime Act of July 22, 1972, when ratifying and updating the Canary Islands ' Fiscal Economic Regime, which had deteriorated and rendered inoperative in some respects, in accordance with the changes made in the The Spanish tax system for the reform of 11 June 1964 also established that the Customs Income with certain exceptions was not applicable in the Canary Islands, and that at the same time they have a different application compared to the common system, as a consequence of constituting the Canary Islands a differentiated area in the taxation on consumption, General Tax on the Traffic of Enterprises, the Tax on Luxury and the same excise duties, also establishing a specialty in direct taxes by extending the amount of the endowment to the Investment Forecast Fund with respect to the one established in the Peninsula and the Balearic Islands.

The introduction of the current Island Cabildos by the Law of 11 July 1912, brought with it a new approach to the financing of the Canary Islands, which have had, since then, a special scheme of funding through the island's Arbitrios. The first Insular Arbitrators were the import and contribution of goods that were applied from 1914, on different dates, in all the Canary Islands. The Arbitrio on Tobacco was also applied throughout the archipelago since 1937. The Arbitrio on alcohols was a resource of the Cabildos de Tenerife, Gran Canaria and La Palma. The Law of the Fiscal Economic Regime of the Canary Islands of July 22, 1972, repealed all this complex system of island arbitrios, and created as resources of the Local Government of the Canary Islands, the Arbitrio Insular to the Entry of Goods with its two tariffs In particular, they have been able to play an important role in promoting the economic-social expansion of the Islands

The unique circumstances of the Economic Regime-Fiscal of the Canary Islands have also been recognized and expressly confirmed in the Third Additional Disposition of the Spanish Constitution, and in Article 45 of the Statute of Autonomy of the Canary Islands.

This process of defining and adapting a special economic tax system has been aimed at providing the Canary Islands with the necessary instruments at each stage, in order to promote their economic and social development. This amendment should also aim to "establish a set of economic and fiscal measures aimed at promoting the economic and social development of the Archipelago", as provided for in Article 1 of the Law in force on 30 January 1972, July 22.

However, on the one hand, the passage of the years and, on the other, the profound changes that emerged in Spain after the promulgation of the Constitution of 1978 with the constitutional division of the State-Autonomous Communities and very In particular, the signing in 1985 of the Treaty of Accession of Spain to the EEC and the tax reform that this accession took with it, have produced a high degree of obsolescence of the Fiscal Economic Regime of the Canary Islands, which has generated a high level of inoperative in the different tax figures applied in the Islands and for which there has been to dictate, to the end to maintain a series of transitional measures on a provisional basis, pending a thorough reform.

II

With this Law, a thorough reform of the tax aspects collected in the REF will be undertaken, so that, respecting the specialty of the Canary Islands that carries with it an indirect tax pressure, differentiated and less than in the the rest of the State, it adapts the tax figures to apply in the Canary Islands, to the requirements of the European Economic Community while guaranteeing the income of the Local Corporations and its future expansion.

In this context, the tax figures that are affected by this Law are, within the scope of the local imposition, the Insular Arbitrations to the Entry of Goods and the Luxury and within the State imposition, the General Tax on the Traffic of Enterprises, the Income Tax of the Physical Persons and the Tax on Societies, the latter two only in respect of the provisions relating to the Investment Forecast Fund.

Not included in the content of this Law is any provision in relation to State Special Taxes, therefore, they will continue to be managed in the same way as they have been up to the present.

III

The main bases and principles of the reform that this Law faces are the following:

A) The Arbitration for Production and Import is imposed, although it is exonerated during a transitional stage to the domestic production of the goods it taxes. From the moment of its implementation, the General Tariff of the Insular Umpire to the Entry of Goods will definitely be subsumed.

B) As for the Special Tariff of the Insular Arbitrio to the Entry of Goods, this will be maintained in the terms provided for in Article 6 of Protocol 2 of the Treaty of Accession. The Spanish Government will, at the time, and in the light of the circumstances which may be present in the Canary economy, propose to the Commission its extension beyond 1 January 1993 for a limited period of time.

C) The Indirect Canarian General Tax is created, in order to rationalize, simplify and unify the current indirect taxation represented by the General Tax on the Traffic of Enterprises and the Insular Arbitration on the Luxury, while maintaining the specificities of the traditional fiscal regime of the islands in a way compatible with the deepening of the integration of the Canary Islands into the policies of the European Community.

The General Tax Indirect Tax falls on imports, deliveries of goods, execution of works and services, taxing the factors of production incorporated in each phase of the production process.

However, in order to maintain the peculiarities of the Canary Islands ' Fiscal Economic Regime, the tax rates established, or those to be established in the future, will in any case be lower than those of the indirect taxation in the rest of the national territory. Measure parallel to the previous one, and for the same purpose, is the exclusion of taxes on exports and similar transactions, retail sales, transactions carried out by taxable persons whose volume of transactions is lower than the limit for this purpose to be pointed out and the agricultural, livestock, fishing and catchment activities, production and distribution of water.

The structure of the tax allows, in the cases where appropriate, the return of the quotas supported in the "inputs" of the different phases of the process of import, production and marketing.

D) In the context of the participation of the different Public Administrations involved-State, Autonomous Community and Local Corporations-it is up to the State to be in charge of the new taxes, which also dictates, prior to the report of the Autonomous Community, the provisions necessary for the development and implementation of the Law. For its part, the Autonomous Community will regulate the aspects relating to the management, liquidation, collection and inspection of new figures, taking the initiative for changes in the tax rates. Indirect General Tax which, if any, should be carried out in the State Budget Laws for each year, as well as for fixing the types of the Arbitrio on Production and Import within the limits established. In order to comply with the principle of autonomy, it is necessary to establish, within the framework of the Autonomous Community, its participation in the regulation and control of new tax figures and their collections.

(E) In order to ensure the efficient management of the new fiscal framework, in line with the specificities of the Canary Islands, which is at the same time compatible with less complexity for the taxpayer, the Autonomous Community is attributed the management powers of the new tax figures mentioned.

F) The returns obtained by the Arbitrio on Production and Import and by the Special Fee of the Umpire's Arbitration to the Entry of Goods, while the latter is in force, correspond to the Local Corporations Canary Islands.

The Autonomous Community and the Canary Islands are joint holders in the proportions that are determined, of the returns obtained by the application of the new Indirect General Tax, substitute for the IGTE and the Arbitrio Insular over the Luxury. This proportional distribution is made from the assumption that the estimated tax collection capacity of the new tax in the first year of its application is equal to the sum of collection by IGTE and by the Arbitrio Insular on luxury. The Autonomous Community shall compensate, with the proportional portion of the collection attributed to it, the minoron which, as expressed, is affected by its participation in the revenue of the State, and, on the other hand, in the Agreement signed by all the The authorities concerned assume the risk of ensuring that the Local Corporations continue to receive, at least, the financial resources that have been allocated to them through the Insular Arbitrio on the Luxury.

G) In the tax incentives chapter a system of incentives for investment in the Canary Islands is designed in which, with the approval of its regulation with that of the rest of the national territory, the existing peculiarity is preserved until now, with the appropriate flexibility in establishing a transitional period allowing the undertakings and employers which have made allocations to the Investment Forecast Fund to carry out the materialisation of such allocations for the benefit of the Canary Islands. It is also expected that the establishment of the new system will not imply a decrease in state investments in the area of the Canary Islands.

IV

Finally, it should be noted that, with the financial capacity of the public authorities having to be maintained, the restructuring will be completed with the planned financial adjustments so that none of the three The authorities concerned suffer from the amount of income which the replaced figures received. As a result, the loss of income suffered by the State Treasury, resulting from the integration of the IGTE into the Indirect General Tax, will be compensated by deducting from the participation of the Autonomous Community of the Canary Islands in the State, yields corresponding to the said tax. In addition to this financial adjustment, the Canarian Local Corporations will receive a similar financing to that which they would have obtained at the moment by the Arbitrio Insular on the Luxury and the Entry of Goods, if they had not been produced. The accession of Spain to the EEC, thus fulfilling the principle of financial sufficiency of the Local Corporations, as set out in Article 142 of the Constitution. In particular, the island's Cabildos will have to participate in the distribution of the participations of the Provincial Diputations, non-island Autonomous Communities and Island Councils in the income of the State, in the same way as make the Canarian Councils, which will be achieved in the following year to which the new Fiscal Economic Regime is approved.

On the other hand, the measures incorporated in this Law, which will be completed in the near future with those established by the Law to regulate the economic aspects of the special regime of the Canary Islands, are aimed at promote the economic and social development of the Archipelago.

PRELIMINARY BOOK

Purpose of the Law

Article 1. º Finality of the Law.

The purpose of this Law is to adapt and update the tax aspects of Law 30/1972, of July 22, of the Fiscal Economic Regime of the Canary Islands, adjusting it to the current and foreseeable socioeconomic conditions of the Archipelago, while guaranteeing to the Local Corporations the financial sufficiency, especially through the regulated revenues in the same.

BOOK FIRST

General Indirect Canary Tax

PRELIMINARY TITLE

Nature and scope of application

Article 2. Nature of the Tax.

The Indirect General Tax Canary is a state tax of indirect nature that taxes, in the form and conditions provided for in this Law, the supply of goods and services made by businessmen and professionals, as well as imports of goods.

Article 3. Space Scope.

1. Supplies of goods and services made in the Canary Islands, as well as imports of goods in the Canary Islands, shall be subject to the Indirect General Tax.

For the purposes of this Tax, the spatial scope referred to in the preceding paragraph shall comprise the territorial sea up to the limit of twelve nautical miles defined in the third article of Law 10/1977 of 4 January, and the corresponding airspace.

2. The provisions of the preceding number shall be without prejudice to the provisions of the Treaties or International Conventions.

TITLE FIRST

Taxation of Subject Operations

CHAPTER FIRST

Delimitation of the taxable fact

Article 4. º Taxable.

1. They are subject to the tax for the supply of goods and services provided by employers and professionals for consideration, on a regular or occasional basis, in the development of their business or professional activity.

2. They are also subject to the tax for the concept of imports of goods the entry of the same in the Canary Islands, whatever the purpose to which they are destined or the condition of the importer.

3. The attachment to the tax is produced regardless of the purpose or results pursued in the business or professional activity or in each operation in particular.

4. Transactions subject to this Tax shall not be subject to the concept of "onerous transfers" of the Tax on Proprietary Transmissions and Documented Legal Acts.

Except for the provisions of the preceding paragraph, the deliveries and leases of immovable property that are exempt from the Indirect General Tax.

Article 5. Concept of business or professional activities.

1. It is business or professional activities that involve the self-management of material and human factors of production, or of one of them, in order to intervene in the production or distribution of goods or services.

In particular, the production, trade or provision of services, including agricultural, forestry, livestock, fishing, construction, mining and the exercise of professional activities, are considered to be Liberal and artistic.

2. For the purposes of this Tax, employers or professionals shall be deemed to be:

1. º Persons or entities who habitually perform business or professional activities.

2. The commercial societies, in any case.

3. The habituality may be credited by any of the eligible means of proof in law.

The habituality will be assumed:

(a) In the cases referred to in Article 3 of the Trade Code.

(b) When the delivery of goods and services subject to the tax is required to contribute to the tax on economic activities.

4. Employers or professionals shall, in any event, be considered to carry out the following operations:

(a) The performance of one or more deliveries of goods or services that result in the exploitation of a body or property in order to obtain continued income over time.

b) The urbanization of land and the promotion, construction or rehabilitation of buildings for sale, award or assignment for any title, even if they are performed occasionally.

The effects of this tax are considered not only for housing and urban buildings, but also for all the buildings carried out, both in the soil and in the subsoil, provided that they are susceptible to independent and independent use.

5. They shall be understood as being carried out in the development of a business or professional activity, in any case:

(a) The supply of goods and services by commercial companies.

(b) transmissions or transfers of use to third parties of all or part of any goods or rights that integrate the business or professional assets of the taxable persons, including those made on the occasion of the cessation of the exercise of the economic activities which determine the subjection to the tax.

Article 6. Concept of delivery of goods.

1. The transfer of the power of disposal on personal property is understood to be the supply of goods.

For these purposes, heat, cold, electrical energy, and other energy modes are considered bodily goods.

2. In particular, the supply of goods is considered:

1. The constitution, extension of its content or the transmission of real rights of enjoyment or enjoyment of real estate.

2. The transfer of ownership, use or enjoyment of immovable property through the assignment of securities that attribute such rights to the property.

3. The transmission of the power of disposal on goods by the assignment of representative titles of the goods.

4. The execution of the work in which the cost of the materials contributed by the employer exceeds 20 per 100 of the tax base. However, the execution of works which are carried out by the owner of the work or assembled by the owner of the work shall be considered, in any case, as supplies of goods.

5. º Non-cash contributions made by taxable persons of the tax of assets of their business or professional assets to companies or communities of goods and the awards of this nature in case of liquidation or total or partial dissolution of those, without prejudice to the taxation applicable in accordance with the regulatory rules of the concepts "Documented Legal Acts" and "Societarian Operations" of the Transmissions Tax Heritage and Documented Legal Acts.

6. The transmissions of goods by virtue of a rule or an administrative or jurisdictional decision.

7. º The disposals of goods by virtue of sales contracts in instalments with a reserve of domain and lease-sale agreements.

For the purposes of the preceding paragraph, leases with an option to purchase from the time the lessee undertakes to exercise the option of purchase and, in general, the lease-to-sale leases shall be assimilated to the lease-sale. of property leases with a property transfer clause, binding on both parties.

8. The transmissions of goods between the principal and the comitonist acting on behalf of the commission under contracts of commission of sale or commission of purchase.

Article 7. Concept of service delivery.

1. For the purposes of this Tax, the provision of services shall mean any operation subject to it which does not have the consideration of the supply of goods or the importation of goods.

2. In particular, they are considered to be services:

1. The independent exercise of a profession, art or craft.

2. º The leases of goods, industry or business, companies or commercial establishments, with or without option to purchase.

3. º The disposals of use or enjoyment of movable property.

4. Cessions and concessions of copyright, licenses, patents, trademarks and other intellectual and industrial property rights.

5. The obligations to do and not to make and the abstentions stipulated in contracts of sale exclusively or derived from agreements of distribution of goods in delimited territorial areas.

6. " Executions of works that do not have the consideration of supplies of goods, in accordance with the provisions of Article 6 (4). No. 2 of this Law.

7. The business premises transfers.

8. Transports.

9. The hospitality, restaurant or camping services and sales of beverages or food for immediate consumption in the same place.

10. Insurance, reinsurance and capitalization operations.

11. The hospitalization benefits.

12. Loans and loans.

13. The right to use sports or recreational facilities.

14. The holding of fairs and exhibitions.

15. Mediation operations and agency or commission operations when the agent or agent acts on behalf of others. When acting on its own behalf and in the provision of services, it shall be understood to have received and provided the corresponding services by itself.

Article 8. Concept of import of goods.

1. For the purposes of this Tax, import shall be defined as the entry of goods into the Canary Islands, originating in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries, whichever is the to be used or the condition of the importer.

2. Without prejudice to the provisions of the preceding number 1, import shall also be considered:

1. The authorization for the consumption in the Canary Islands of the goods that are regulated in the regimes of temporary importation, transit, inward processing in the system of suspension or deposit, thus as in Free Zones and Deposits.

2. Deaffectation of the vessels and, where appropriate, of the objects incorporated or used on board of the vessels, for the purposes referred to in Article 14 (1), paragraph 2. of this Law, when the entry of the said objects vessels or objects in the territory referred to in this Article have benefited from the exemption from the tax.

3. Deaffectation of the aircraft and, where appropriate, of the objects incorporated or used on board of the aircraft, of the companies which are essentially engaged in international air navigation when the entry of the said aircraft aircraft or objects in the territory referred to in this Article would have benefited from the exemption from the tax.

4. The change of the conditions under which the exemption from the tax would have been applied to the deliveries or transformations of the ships, aircraft and objects incorporated or used for the operation of such means of transport.

5. º The acquisitions made in the Canary Islands of the goods whose previous delivery or import would have benefited from the exemption from the tax pursuant to the provisions of Articles 6 and 7 of Article 12, and in the Article 14 (8) and (9), both of this Law.

However, the provisions of the preceding paragraph shall not apply where the acquirer immediately and definitively exports such goods or sends them in the same way to the Balearic Islands, Ceuta or Melilla.

3. The provisions of paragraphs 2 and 3 of paragraph 2 of this Article shall not apply after 15 years after the importation or free deliveries referred to in those paragraphs have been carried out.

Article 9. º Non-clamping.

They are not subject to Tax:

1. The following transmissions of goods and rights:

(a) the transfer of the entire business or professional assets of the taxable person, carried out in favour of a single acquirer, where the latter continues to carry out the same business or professional activities as transmit.

(b) the transfer of the entire business or professional assets of the taxable person or of the property assets to one or more of the autonomous branches of the business or professional activity of the transferor; (a) the merger or division of undertakings to which the tax benefits provided for in Law 76/1980 of 26 December 1980 are granted, provided that it is established in the file that it does not apply to the tax on the transmission of such distortions shall be caused in the normal operation of the same.

For the purposes set out in this letter, branch of activity shall be understood as defined in Article 15 (2) of Law 26/1980 of 26 December on the Tax Regime of Business Mergers.

(c) Mortis transmission causes all or part of the business or professional assets of the taxable person in favour of those acquirers who continue to pursue the same business activities or professional of the relay.

In any event, changes in the affectation of goods or rights that are disaffected from those business or professional activities that determined their non-attachment to the Tax will be subject to the Tax.

2. º Money deliveries for consideration or payment.

3. The services provided by natural persons on a dependency basis derived from industrial or administrative relations, as well as those provided to worker cooperatives associated with the partners.

4. The transfers of goods or rights to the business or professional assets of the taxable person to his or her personal property or to his or her private consumption.

5. The application, in whole or in part, to the particular use of the taxable person of goods affected by his business or professional activities.

6. The change in the affectation of personal property or of real rights of enjoyment or enjoyment of immovable property from one sector to another of the business or professional activity of the taxable person.

7. The affectation or, where appropriate, the change of affectation of goods constructed, extracted, processed, acquired or imported in the exercise of a business or professional activity of the taxable person for use in his activity as investment goods.

8. The transmission of the power of disposal on personal property or the transfer of real rights of enjoyment or enjoyment on immovable property that integrate the business or professional assets of the taxable person made in title free.

9. The deliveries of goods or services provided directly by the State, the entities in which it is organized territorially and its autonomous bodies, when carried out by means of consideration of nature tax.

However, they are subject, in any case, to the operations they perform in the development of the following activities:

a) Telecommunications.

b) Distribution of water, gas, electricity and thermal energy.

c) Transports of goods and people.

d) Provision of port and airport services, except where they correspond to inter-island transport activities of the Canary Islands.

e) Deliveries of products obtained, manufactured or processed by themselves.

f) Intervention on agricultural products aimed at regulating the market for these products.

g) Exploitation of trade fairs and exhibitions.

h) Store and warehouse.

i) The advertising offices themselves and those of travel agencies.

j) Exploitation of canteens and canteens, cooperatives, economates and similar establishments.

k) Teaching and feeding, transport and ancillary accommodation of that.

l) Commercial or commercial of public radio and television.

m) The slaughterhouse.

10. The establishment of concessions and administrative authorisations, except those for the assignment of the right to use immovable property or facilities at ports and airports.

CHAPTER II

Exemptions

Article 10. Exemptions in internal operations.

1. They are exempt from this Tax:

1) The provision of services and the supply of ancillary goods to the services carried out by postal public services.

The exemption does not extend to telecommunications or passenger transport.

2) The benefits of inpatient and health care services and other services directly related to the services carried out by public law entities or by private entities or establishments authorized prices.

The exemption does not extend to veterinary services.

3) Assistance to natural persons in the exercise of medical and health professions defined as such by the legal system, whichever person is the person to whom the service is provided.

4. The deliveries of blood and other fluids, tissues and other elements of the human body made for medical or research purposes or for processing for identical purposes.

5) Services performed in the field of their respective professions by stomatologists, dental practitioners and dental prosthetics, as well as the delivery, repair and placement of dental prostheses and maxillary orthopedics.

6) Services provided directly to its members by unions, groups or entities constituted by natural or legal persons who essentially exercise an activity exempt or not subject to the tax, when the Following conditions:

(a) that such services are used directly and exclusively in such activity and are necessary for the exercise thereof.

(b) Members shall be limited to the reimbursement of the share corresponding to the expenses incurred in common.

c) That the right to the exemption in the form determined in the Tax Regulation be recognized in advance.

The exemption does not reach the services provided by the commercial companies.

7). The supply of goods and services which, for the purposes of their specific purposes, carry out Social Security, directly or through their managing or collaborating entities.

This exemption shall apply only in cases where those who carry out such operations do not receive any consideration from the acquirers of the goods or the recipients of the services other than the contributions made to Social Security.

8) The following services are exempt from social assistance services carried out by entities governed by public law or private entities or establishments of a social nature:

a) Protection of children and youth.

b) Third age assistance.

c) Assistance to physically or mentally handicapped persons.

d) Assistance to ethnic minorities.

e) Assistance to refugees and asylum seekers.

f) Assistance to passersby.

g) Assistance to women with unshared family burdens.

h) Community and family social action.

i) Prevention of crime and social reintegration.

j) Assistance to alcoholics and drug addicts.

k) Assistance to former inmates.

The exemption includes the provision of the aforementioned social services, as well as the supply, accommodation or transportation of the above provided directly by those establishments or entities with means own or foreign.

9) The provision of services relating to the education of children or young people, to education at all levels and degrees of the education system, to language schools and to vocational training or retraining, carried out by teaching centres, as well as the food, accommodation or transport services of the former directly provided by the aforementioned centres, with their own or other means.

10) Classes, in particular, on subjects included in the curricula of any of the levels and degrees of the educational system, taught outside the teaching centres and independently of them.

11) The disposals of personnel performed in the performance of their purposes, by legally recognized religious institutions, for the development of the following activities:

a) Hospitalization, healthcare, and others directly related to them.

(b) Social assistance referred to in paragraph 8 above.

c) Education, teaching, training and retraining.

12) Services and supplies of ancillary goods to their members by legally recognised bodies or entities which do not have a lucrative purpose, the objectives of which are exclusively of a political, trade-union, religious, patriotic, philanthropic or civic nature, carried out for the achievement of their specific purposes, provided that, in addition, they do not perceive the beneficiaries of such operations any other than the contributions laid down in its statutes.

The enjoyment of this exemption will require its prior recognition by the Ministry of Finance of the Autonomous Government of the Canary Islands, in accordance with the procedure to be determined.

13) Services provided by Public Law Entities, Sports Federations or Entities or private sports establishments of a social character to those who practice sport or physical education, whatever the the person or entity to which the benefit is provided, provided that such services are directly related to such practices and the fees of those services do not exceed the amounts shown below:

Entry or admission fees: 200,000 pesetas.

Periodic quotas: 3,000 pesetas per month.

These amounts may be modified in the General Budget Law of the State of each year.

14) The services provided below are related to entities governed by public law or by entities or cultural establishments of a social nature:

a) The libraries, files, and documentation centers themselves.

b) Visits to museums, art galleries, art galleries, monuments, historical sites, botanical gardens and zoos.

c) Theatrical, musical, choreographic, audiovisual and cinematographic representations.

d) The organization of exhibitions and conferences.

15) The transport of sick or injured people in ambulances or vehicles specially adapted for this purpose.

16) Insurance, reinsurance and capitalisation operations, as well as the provision of services relating to insurance and insurance brokers and insurance and reinsurance brokers.

17) Deliveries of timbrated effects of legal tender in Spain for the amount not exceeding their face value.

18) The following financial operations, whatever the condition of the borrower and how they are instructed, including through financial effects:

(a) Cash deposits in their various forms and other related transactions.

b) The granting of loans and loans in money, whatever the condition of the borrower and the way in which they are instructed, even through financial effects.

(c) Other operations, including management, relating to loans or loans made by those who granted them.

(d) The provision of guarantees, guarantees and documentary credits.

The exemption extends to the management of loan guarantees or loans made by those who granted the loans or secured loans or the guarantees themselves.

(e) Operations relating to transfers, money orders, cheques, books, notes, exchange letters, payment or credit cards and other payment orders, including inter-bank cheques and stubs.

(f) Trading, exchange and similar services having as their object foreign currency, bank notes and coins that are legal means of payment, with the exception of coins and collection notes.

For the purposes of the preceding paragraph, coins and banknotes which are not normally used for their function as a legal means of payment or have an interest, numismatic and parts thereof shall be considered as a collection. silver, gold or other metal.

(g) Services and transactions relating to shares, shares in companies, bonds and other securities not mentioned in the letters preceding this paragraph 18), with the exception of:

a ') Market representatives.

b ') Titles the possession of which is in fact or in fact the property, use, or exclusive enjoyment of immovable property.

(h) Negotiation and mediation, whether or not the public faith has appeared, in the exempt transactions described in the preceding letters of this paragraph 18.

i) The management of the Investment Fund, Pension, Investment in Assets of the Monetary Market, Regulation of the Mortgage Market and Retirement Collective, established in accordance with its legislation specifies.

j) Intervention services in the operations described in the preceding letters of this paragraph 18) provided by Exchange and Exchange Agents, Trade Brokers, Colleges and Notaries.

19) The lotteries, bets and games organized by the National Agency of Lotteries and Betting of the State and the National Organization of the Blind and, where appropriate, by the corresponding organs of the Autonomous Community of the Canary Islands, as well as the activities of which the unauthorised authorisation or performance constitutes the taxable facts of the rate on raffles, tomballs, bets and random combinations or of the rate of the games of luck, send or chance.

20) Deliveries of land that do not have the condition of buildables.

To this effect, the land classified as solar by the Law of Soil and other urban norms, as well as the other land suitable for the construction because it has been authorized by the corresponding administrative license.

The exemption does not extend to the deliveries of the following areas that do not have the condition of buildables:

(a) The urbanized or urbanized land, carried out by the developer of the urbanization.

(b) Land in which buildings are located in construction or completed construction, under the conditions and with the limits to be determined in a regulated manner.

However, the supply of non-buildable land in which buildings of an agricultural character are essential for their exploitation and those of the same type of land in which they exist are exempt. paralyzed, ruinous or derruid constructions.

21) The deliveries of land to be carried out as a result of the initial contribution to the Compensation Boards by the owners of land covered by urban development estates and land awards which are made to the owners referred to by the Boards themselves in proportion to their contributions.

The exemption extends to the land deliveries to which the repair is carried out under the conditions set out in the preceding paragraph.

This exemption will be conditional upon compliance with the requirements required by urban legislation.

22) The second and subsequent deliveries of buildings, including the land in which they are located, when their construction or rehabilitation takes place.

The exemption does not extend:

(a) To the deliveries of buildings made in the exercise of the option of purchase inherent in a contract of financial lease by Entities authorized to carry out such operations according to Law 26/1988, of July 29.

b) To the delivery of buildings for immediate rehabilitation by the acquirer, provided that the requirements that are regulated are met.

For the purposes of this Law, the first transmission shall be considered to be carried out by the sponsor, provided that the building or rehabilitation is completed and before the uninterrupted use by a two-year period by its owner or by holders of actual rights of enjoyment or enjoyment or of the assignment of the building for the same period under lease contracts with no option to purchase.

23) Leases which have the consideration of services and which have for the purpose of land or dwellings, including the attachments and accessories to the latter leased jointly with them.

The exemption does not include:

a) Land leases for vehicle parking.

(b) Land leases for the deposit or storage of goods, goods or products.

c) Leases to third parties for exposures or for advertising.

(d) Leases with an option to purchase land or houses whose transmission is subject to and not exempt from the tax.

24) The supply of goods which have been used by the transmission exclusively in the conduct of transactions exempt from the tax in accordance with this article, provided that the taxable person is not attributed the right to make the total or partial deduction of the input tax upon the purchase or import of such goods or components.

25) The supply of goods for which the acquisition or import or the component component parts thereof would not have determined the right to deduct in favour of the transfer because they are not directly related to the exercise of their business or professional activity or to be found in some of the cases of exclusion from the right to deduct provided for in this Law.

26) The deliveries of paintings or drawings made by hand and those of sculptures, prints, prints and lithographs, provided that, in all cases, they are original works and are carried out by the authors of the same or by third parties they act in the name and on behalf of those.

27) The deliveries of goods by retail traders. The exemption does not extend to the supply of goods and services provided by those subjects outside the scope of that commercial activity.

Nor shall the exemption be extended to the first supply of goods imported into the territory of the Autonomous Community of the Canary Islands, whatever the nature of the recipients of the goods and the importer, without prejudice to the set out in the following section.

28) Deliveries of goods and services performed by taxable persons persons whose total volume of transactions carried out during the preceding calendar year had not exceeded 3,000,000 pesetas. This limit will be automatically reviewed every year by the variation of the consumer price index.

29) Professional services including those whose consideration consists of copyright, provided by plastic artists, writers, literary collaborators, newspapers and magazines, musical composers, authors of theatrical works and authors of the argument, adaptation, script or dialogues of audiovisual works.

2. For the purposes of the preceding number, the following requirements shall be considered as social entities or establishments in which the following requirements are met:

1. No. Of profit-making purposes and, where appropriate, to dedicate the benefits eventually obtained to the development of activities exempt from the same nature.

2. The charges of employers or legal representatives shall be free of charge and shall be without interest in the economic performance of the holding by itself or through an individual.

3. The partners, community members or members of the institutions or establishments, and their spouses or consanguine relatives, up to and including the second degree may not be the principal recipients of the exempt transactions or special conditions for the provision of services.

The provisions of the preceding paragraph shall not apply in the case of the services provided for in paragraph 1 (8) and (13) of this Article.

3. For the purposes of this Tax, the taxable persons in whom the following requirements are met shall be considered as retail traders:

1. Do with habituality sales of movable or semi-moving goods without having undergone any process of manufacture, manufacture or manufacture, by themselves or through third parties.

2. The sum of the consideration for the deliveries of those goods to those who do not have the status of businessmen or professionals or to the Social Security, carried out during the previous year, would have exceeded 70 per 100 of the total of the realized.

3. For the application of the provisions of the preceding number, they shall be deemed not to be processing operations and, consequently, the condition of retail traders shall not be forfeited, for the performance of such operations, the following are related:

1. The classification and packaging of products.

2. The placing of marks or labels, as well as the preparation and cutting prior to the delivery of the goods transmitted.

3. The manipulations to be determined regulatively.

Article 11. Exemptions related to exports.

They are exempt:

1. The deliveries of goods shipped with definitive character to the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or definitively exported to Third Countries by the transmission or by a third in name and on behalf of this.

2. The deliveries of the goods sent definitively to the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or exported definitively, to Third Countries by the acquirer established in the Canary Islands or by a third party in the name and on behalf of the Canary Islands.

In the case of supplies of goods to travellers resident on the Peninsula, Balearic Islands, Ceuta, Melilla, any Member State of the EEC or Third Countries, the exemption shall only be granted to those operations which relate to the goods and are carried out under conditions to be determined in accordance with the rules.

The exemption provided for in this number 2 does not include the supply of goods intended for the equipment or the provision of sports or recreational craft, of tourism aircraft or of any means of transport for private use of the acquirer.

3. The provision of services consisting of works carried out on movable property acquired within the Canary Islands or imported for the purpose of such work in the Canary Islands and subsequently sent definitively to the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or definitively exported to Third Countries by whom it lent them or by its consignee not established in the Canary Islands or by Third Parties in the name and on behalf of any of them.

4. The deliveries of goods to duly recognized organizations that send them definitively to the Peninsula, Balearic Islands, Ceuta. (a) the right to an exemption in the form which it is governed by the laws of the Member States of the European Community, or of any other Member State of the EEC, or to export it definitively to Third Countries in the framework of its humanitarian, charitable or educational activities; determine.

5. The provision of services, including transport and ancillary operations, other than those which are exempted under the previous Article of this Law, where they are directly related to exports or to shipments of goods to the Peninsula, the Batreen Islands, Ceuta, Melilla or any other Member State of the EEC.

6. Services provided by intermediaries acting in the name and on behalf of Third Parties, when they are involved in the operations described in this Article or in those operations outside the Canary Islands.

This exemption does not apply to the mediation services of travel agencies that hire in the name and on behalf of the traveler benefits that are carried out in the Peninsula, Balearic Islands, Ceuta or Melilla or in any other State Member of the EEC.

Article 12. Exemptions in operations assimilated to exports.

The following operations are exempt:

1. Deliveries, constructions, transformations, repairs, maintenance, total chartering or leasing of vessels affected essentially by international maritime navigation and those intended exclusively for rescue, assistance sea or coastal fishing, as well as the deliveries, leases, repair and maintenance of the objects, including fishing equipment, incorporated in the said vessels after their registration in the Register of the corresponding Register of Ships or which are used for their operation on board the holding.

The operations referred to in the preceding paragraph relating to warships, sports or recreational vessels and the objects incorporated therein are exempted from the exemption.

2. Deliveries of passenger goods placed on board the following vessels:

1. º Those who perform international maritime navigation.

2. The affections to salvage or maritime assistance.

3. The affections to coastal fishing, without the exemption being extended to the provisions of on board.

In no case shall deliveries of avittualling products on board sporting or recreational vessels or, in general, private use be exempt.

3. Deliveries, constructions, transformations, maintenance repairs, total chartering or leasing of aircraft used exclusively by companies which are essentially engaged in international air navigation, as well as deliveries, repairs, maintenance and leasing of the goods incorporated in those aircraft after their registration in the Register of Aircraft or used for their operation on board.

4. Deliveries of products intended for the purpose of aircraft flying international air navigation, where they are acquired by the carriers to which such aircraft belong and are placed in the tanks of the said companies controlled by the competent authorities.

5. The performance of services other than those related to numbers 1 and 3 of this Article, carried out to meet the direct needs of the vessels and aircraft referred to and their cargo.

6. The supply of goods and services provided in the framework of diplomatic and consular relations in cases and with the requirements to be determined in accordance with the rules.

7. Supplies of goods and services to international bodies recognised by Spain or to members with diplomatic status of such bodies, within the limits and under the conditions laid down in the Conventions International.

8. The gold deliveries to the Banco de España.

9. Gold deliveries in bullion intended for deposit in financial institutions to support the issuance of credit certificates for such deposits.

10. Services provided by intermediaries acting on behalf of and on behalf of third parties when involved in the operations described in this Article.

11. The carriage of passengers and their luggage by sea or air which, initiated in the Canary Islands, ends on the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries, or vice versa.

12. Services provided by public telecommunications services to other undertakings of the same activity established abroad for the performance of such public services when they have been initiated outside the Spanish territory.

Article 13. Exemptions for Free Zones and Deposits, Deposits and Non-Subject Tariff Regimes.

1. The following transactions relating to Free Trade and Deposits and Deposits are exempt, provided that the provisions of the applicable law and the goods to which they relate are complied with, where appropriate. in those areas without being used or consumed:

1. The deliveries of goods dispatched or transported to the aforementioned areas, to be placed under the arrangements corresponding to them.

Services directly related to the deliveries referred to in the preceding paragraph are also exempt.

2. The deliveries of goods found in the aforementioned areas, as well as the services related directly to those deliveries.

3. The performance of services that refer to the goods that are under the aforementioned areas.

4. The services provided by intermediaries acting on behalf and on behalf of third parties when they intervene in the operations described in paragraphs 1. 2. 2. and 3. above.

2. The following transactions relating to goods imported into the transit, temporary importation, or inward processing arrangements in the suspension system are also exempt, while remaining in those situations and in compliance with the their case, the provisions of the applicable legislation:

1. º The deliveries of the goods that are covered by these regimes and the services directly related to those deliveries.

2. The services provided by intermediaries acting on behalf and on behalf of third parties when they intervene in the operations described in the previous paragraph.

3. The provision of services which are declared exempt in numbers 1 and 2 of this Article shall not, in any event, include those which are exempt under Article 10 of this Law.

Article 14. Exemptions on definitive imports of goods.

Imports of goods in the Canary Islands and the services provided below are exempt from the tax, provided that the conditions and conditions required by the implementing rules are met. of this Law and the other provisions laid down in the provisions applicable to them.

1. Definitive imports of the following goods:

1. Blood and other fluids, tissues, and other elements of the human body for medical or research purposes or for processing for identical purposes.

2. The vessels concerned essentially with international maritime navigation and those exclusively dedicated to rescue, maritime assistance or coastal fishing, as well as the objects incorporated into the vessels or which are intended to be used for their operation on board the holding, including the fishing equipment.

The exemption does not extend to warships or sports or recreational craft.

3. The aircraft intended to be used exclusively by companies which are essentially engaged in international air navigation and the objects incorporated in or used for the purpose of the aircraft. located on board the same.

4. The products of victualling which, from the moment when the entry in the Canary Islands occurs until the arrival at the port or ports located in that territory that constitute stops of their travels and during the remain within them for the period necessary for the fulfilment of their purposes, have been consumed or are on board ships engaged in international maritime navigation.

5. The products of victualling that, from the entrance to the Canary Islands until the arrival at the airport or airports located in that territory that constitute stops of their travels and during the stay in the same by the time required for the fulfilment of their purposes, whether they have been consumed or are on board the aircraft carrying out international air navigation.

6. The products used in the victualling of ships and aircraft carrying out international navigation when imported by sea or air navigation companies using such vessels or aircraft.

7. º Bank banknotes in legal tender.

8. º The securities titles.

9. ° The paintings and drawings made by hand and the sculptures, prints, prints and lithographs, provided that in all cases they are original works and the imports are carried out directly by the authors of the same.

2. The gold imports made by the Banco de España and the gold imports into bullion intended for deposit in financial institutions to support the issuance of certificates of such deposits.

3. The definitive imports indicated below, where the importer applies for the exemption and the conditions and requirements to be laid down in regulation are met.

1. º Personal property imported by natural persons who move their habitual residence from the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the European Economic Community or from third parties countries, to the Canary Islands.

Personal property is intended for the personal use of the person concerned or for the needs of his or her household, provided that such goods, by their nature or quantity, do not constitute a commercial expedition or are intended for the purpose of an economic activity other than the portable instruments necessary for the exercise of the profession or trade of the importer.

The goods referred to in paragraph 28. of this number 3 may only be imported with an exemption up to the limit of the amounts admitted with exemption under the rules of procedure of travellers covered by that paragraph. However, where the person concerned has had his former residence in the Peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community, the exemption shall be extended to four times of those quantities.

The exemption will be conditional upon compliance with the following requirements:

(a) That the goods have been acquired under normal conditions of taxation in the country of origin or origin, without having benefited from their departure from those countries, from exemption or refund of taxes supported.

This requirement shall be deemed to be fulfilled where the goods have been acquired under the exemptions established in the diplomatic or consular arrangements or in favour of the members of the recognised International Bodies and in the State of origin, with the limits and conditions laid down by the International Conventions establishing such bodies or by the host agreements.

(b) Motor vehicles for road traffic, including trailers, caravans, transportable dwellings, recreational craft and passenger aircraft must have been affected by the use of the persons concerned, before the transfer of their residence for a period of at least 12 months if they have benefited from the exemptions referred to in the second subparagraph of point (a) above, and from six months in other cases.

The goods referred to in the preceding paragraph may not be transmitted, transferred or leased for the 12 months following their importation, unless justified.

(c) Goods other than those referred to in point (b) above which have benefited from the exemptions referred to in the second subparagraph of (a) above shall have been affected by the use of the persons concerned. for a minimum period of six months prior to the transfer of residence.

d) That the persons concerned have been resident in their former residence for the following minimum periods: one hundred and eighty five days per calendar year, if they come from the Peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community, and 12 months if they come from countries outside the Community.

2. The personal property imported by persons who, on the occasion of their marriage, move their residence from the Peninsula, Balearic Islands, Ceuta, Melilla or abroad to the Canary Islands.

The exemption also extends to imports of gifts usually offered on the occasion of marriage received by the persons referred to in the preceding paragraph, from those who have their habitual residence in another the territory of the European Economic Community and the unit value of the gifts does not exceed the value of 350 ECUs, or those who have their habitual residence outside the Community and the unit value of the gifts does not exceed Value in pesetas of 200 ECUs.

In the case of the goods referred to in paragraph 28. of this number 3, the exemption shall apply up to the limits specified in paragraph 1. above for such goods.

The exemption will be conditional on the concurrency of the following requirements:

(a) Those set out in the fourth subparagraph of paragraph 1 (a), (b) and (c) above.

b) That the person concerned provides proof of their marriage.

(c) If the import is effected before the marriage is concluded, the Administration may require the provision of a guarantee.

3. The personal property imported by natural persons who had acquired the property or the usufruct of such property by reason of death, when the acquirer had his habitual residence in the territory of application of the Tax.

The exemption shall also apply where the acquirer has a secondary residence in the territory of application of the tax, if the goods are from the Peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community.

In the case of the goods referred to in paragraph 28. of this number 3, the exemption shall apply only within the limits laid down in paragraph 1. above.

Likewise, imports of personal property whose property or usufruct would have been acquired by cause of death by non-profit entities established in the territory of the application of the Tax.

4. The personal property that is imported by a private person to furnish a secondary residence of his/her in the Canary Islands.

Personal property that is destined for the habitual residence or other secondary of the importer in the Canary Islands, coming from a secondary residence of the same that is abandoned in the Peninsula, also benefits from the exemption. Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community, provided that such goods were actually intended for the use of the person concerned in this secondary residence prior to their abandonment.

The exemption will be conditional upon compliance with the following requirements:

(a) Those set out in the fourth subparagraph, points (a) and (c) of paragraph 1. above.

b) That the importer is the owner of the secondary housing, or tenant for a minimum period of twelve months.

c) That the goods correspond to the normal furniture of secondary housing.

5. The personal effects and objects of used furniture belonging to students who, having their habitual residence in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Parties Countries, come to reside temporarily to the Canary Islands to carry out their studies in this territory. Also included in the exemption are used objects and instruments that are normally used by such students in carrying out their studies.

The exemption will only be granted once during each school year.

6. The goods listed below whose import is devoid of commercial character:

(a) Decorations granted by the authorities of the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries to persons having their habitual residence in the territory of the Canary Islands.

(b) The cups, medals and similar objects of a essentially symbolic nature, granted in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Countries to persons having their habitual residence in the territory of the Canary Islands, in respect of their artistic, scientific, sporting or public activities or in particular recognition, provided that they are imported by the same persons to whom they were granted.

(c) Glasses, medals and similar objects of a essentially symbolic nature, delivered free of charge by authorities or persons established in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Countries to be delivered with identical purposes to those referred to in point (b) above, in the territory of the Canary Islands.

d) Rewards, trophies, symbolic and low value memories, intended to be distributed free of charge to persons who have their normal residence in the territory of the Canary Islands, on the occasion of congresses, business meetings or similar international events.

7. The consignments addressed to persons or entities authorized to receive them, from samples of referenced substances authorized by the World Health Organization for the control of the quality of the materials used for the Manufacture of medicinal products.

8. The goods that, as a gift and on an occasional basis:

(a) Be imported by persons who have paid an official visit to the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or to Third Countries.

(b) They are imported by persons who make an official visit to the Canary Islands to be delivered to authorities or official entities of the Canary Islands.

(c) Be sent to the official authorities or entities of the Canary Islands by official authorities or entities of the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries.

In any event, the exemptions in this paragraph will be limited by the content of the applicable international passenger traffic provisions.

9. The goods destined to be used or consumed during their stay in the Canary Islands by the foreign heads of state, by those who represent them or have similar prerogatives to them, on condition of reciprocity.

10. The goods donated to the King of Spain.

11. The following goods, imported by Entities or establishments created for the fulfillment of charitable or philanthropic purposes, provided they are used exclusively for their specific purposes:

(a) Those acquired free of charge in order to be distributed to persons in need, with the exception of alcoholic products listed in paragraph 1. above, in the case of raw or manufactured tobacco, coffee, tea and vehicles engine other than ambulances.

(b) Those intended to be distributed to victims of disasters produced in the Canary Islands.

12. The goods imported by Entities or approved establishments for the assistance of the disabled, specially designed for the education, employment or social promotion of the same.

13. Imports free of charge from animals specially prepared for use in laboratories and biological and chemical substances from the Peninsula, Balearic Islands, Ceuta, Melilla or other State Member of the EEC, provided that some and others are imported by public establishments or services dependent on them, engaged in scientific education or research or, subject to authorization, by private establishments engaged in the same activities.

The import or free import of biological or chemical substances from countries outside the European Economic Community shall be exempt when it is carried out by the establishments referred to in the paragraph before and is exempt, in turn, from the Arbitrio on Production and Import in the Canary Islands.

14. The therapeutic substances of human origin and reagents for the determination of blood groups or for the analysis of human tissues, imported to be used exclusively for medical or scientific purposes.

The exemption shall also include packaging essential for the transfer of such substances and reagents, as well as solvents and accessories for their preservation or use.

15. º Pharmaceutical products intended for the use of persons or animals participating in international sports competitions, in the precise quantities to cover their needs for as long as they remain in the Canary Islands.

16. The samples with no estimable commercial value, which cannot serve more than to manage orders for goods of the species represented by them

17. "Advertising" printed matter, such as catalogues, price lists, instructions for use or commercial brochures referring to the following goods or services:

(a) Goods for sale or hire by a person established in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Countries.

(b) Service stations offered by a person established in the Peninsula, Balearic Islands, Ceuta, Melilla or in another Member State of the EEC.

(c) Provision of services in the field of transport, commercial insurance or banking offered by a person established in a country outside the European Economic Community.

The exemption from this paragraph is conditional upon compliance with the following requirements:

(a ') The printed matter must bear in a visible manner the name of the undertaking which produces, sells or leases the goods or which offers the services to which they relate.

b ') Each consignment shall comprise a single document or a single copy of each document if it consists of several documents. However, consignments of several copies of the same document may be sent if their total gross weight does not exceed one kilogram.

c ') Printed must not be the object of grouped shipments from the same sender to the same recipient.

Notwithstanding the above, the requirements of points (b) and (c) shall not be required in respect of printed matter relating to goods intended for sale or hire or with services offered by a person established on the Peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community, if such forms have been imported for free distribution.

18. No advertising objects without commercial value, provided free of charge by suppliers established in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Countries, and that has no other possible function than advertising.

19. º The following goods for an exhibition or demonstration:

a) Small representative samples of goods.

b) Those that are used exclusively in the realization of demonstrations.

c) Materials of low value for the decoration of the pavilions of the exhibitors.

d) Advertising printed.

The goods referred to in the preceding letters may only be allocated to their free distribution or to be consumed or destroyed in the course of the exposure and their overall value or quantity shall be in relation to the nature of the manifestation and the importance of exhibitor participation.

Samples and printouts may not be used for advertising purposes.

It shall not be understood in the exposures or manifestations of this paragraph that they are held privately in warehouses or commercial premises for the sale of goods.

In any case, alcoholic products, tobacco and fuels and fuels will be excluded from the exemption.

20. The investment assets belonging to companies which cease definitively and totally in their activity in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Countries and transfer to the Canary Islands to start a similar activity in this territory, provided that the transfer of the company does not cause the merger with another company established in the Canary Islands.

Exclude from this exemption:

(a) Means of transport which do not have the character of production or service instruments.

(b) Products fit for human or animal feed.

(c) Fuel and stocks of raw materials, semi-finished or finished products.

21. The goods to be examined, analysed or tested in order to determine their own composition, quality or technical characteristics, for the exclusive purposes of information or research of an industrial nature or commercial.

22. ° The marks, models or drawings, as well as the files relating to the application for patents of invention or the like, intended for the competent bodies in matters of protection of copyright or property industrial or commercial.

23. The goods destined for the conditioning or feeding en route of animals which, coming from the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries, are conducted by the Canary Islands in any means of transport, provided that such goods are on board the means of transport and are used or distributed in the course of that journey.

24. The fuels contained in the tanks of motor vehicles and of tourism and in those of containers for special uses, which are introduced into the territory of application of the tax, in the conditions and with the following limits:

(a) Fuel contained in the normal tanks of motor vehicles and special purpose containers:

(a ') Industrial vehicles from the Peninsula, Balearic Islands, Ceuta, Melilla or other Member States of the European Economic Community and intended for the transport of persons: up to 600 litres.

b ') Other industrial vehicles: Up to 200 litres.

c ') Containers for special uses: Up to 200 litres.

In the case of vehicles other than those mentioned in the preceding letters, no limitation shall be applied in relation to the fuels contained in the normal tanks of such vehicles.

(b) fuels contained in portable deposits of passenger cars: up to 10 litres.

The exemption shall also apply to lubricants which are on board the vehicles up to the limits corresponding to the normal requirements of their operation during the course of the journey.

For the purposes of this article it is understood by:

(a) Industrial motor vehicle: A motor vehicle suitable for road traffic which, by its characteristics and equipment, is suitable and is actually intended for transport, with or without remuneration, of more than nine persons, including the driver, or goods, as well as other special uses other than transport.

(b) Motor vehicle for passenger cars: Any motor vehicle suitable for road traffic which is not covered by the concept of an industrial motor vehicle.

c) Special purpose containers: Any container equipped with specially adapted devices for refrigeration, oxygenation, thermal insulation or other systems.

(d) Normal deposits: deposits, including gas, incorporated in a manner fixed by the manufacturer in all series vehicles or in containers of the same type, the provision of which permits direct use of the fuel for the traction of the vehicle or, where appropriate, for the operation of the cooling systems or any other with which the vehicle is equipped or with the special purpose containers.

Fuel admitted with exemption may not be used in vehicles other than those in which they were imported, extracted from such vehicles or stored, except where the vehicles were the subject of a vehicle. (a) the necessary repair or transfer of a fee or a charge by the beneficiary of the exemption. If the conditions indicated are not met, the quantities of those products which have received the aforementioned irregular destinations shall be subject to the tax.

25. The goods destined for the construction, preservation or decoration of memorials or military cemeteries of foreigners in the Canary Islands.

26. º coffins and urns containing corpses or the remains of their incineration and the flowers, crowns and other ornamental objects that are normally accompanied by them.

27. The goods contained in the personal luggage of the passengers, under the conditions and with the limits to be established regulentarily.

28. ° Small consignments of goods transmitted without consideration by a particular resident in the Peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the EEC to another particular resident of the Canary Islands in the quantities and conditions to be regulated.

29. The official publications of the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries, printed, brochures, posters, yearbooks, technical material and other similar purposes tourist propaganda to be distributed free of charge or to the official tourism agencies accredited in the Canary Islands, provided that they do not contain more than 25 per 100 commercial advertising.

30. º The photographs, slides, and clichés for photographs, even those that carry legends, referred to press agencies or editors of newspapers or periodicals.

31. The educational, scientific or cultural audiovisual materials produced by the United Nations Organization or any of its agencies on the terms and requirements specified in this article. regulentarily.

32. º Collection objects or art objects of an educational, scientific or cultural character; that are imported by museums, galleries or other establishments to exclusively target them for their exposure.

The exemption will be conditional on the importation of goods acquired for free or, in the case of acquisitions for consideration, to which the goods would have been delivered by a person or entity which does not be an entrepreneur or a professional.

33. The objects intended to serve as evidence or for similar purposes before the Courts or other official bodies of the Member States of the European Economic Community.

34. The following documents and articles:

(a) Documents sent free of charge to the public services of the Member States of the European Economic Community.

b) Publications of foreign governments and publications of international public bodies to be distributed free of charge.

c) Voting ballots for elections organized by Entes or Organisms established in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Countries.

(d) Recognition of signatures and printed circulars relating to signatures, issued in the framework of the usual exchange of information between public services or banking establishments.

(e) Official forms of character addressed to the central banks of the Member States of the European Economic Community.

(f) Reports, reports of activities, information notes, prospectuses, subscription bulletins and other documents issued by companies that are not based in the Canary Islands and addressed to holders or subscribers of the securities issued by such companies.

g) The perforated sheets, sound records, microfilms and other recorded media used for the transmission of information, transmitted free of charge to the recipient.

(h) The files, files, forms and other documents intended for use in international meetings, conferences or congresses, as well as the minutes and summaries of these events.

(i) drawings, technical drawings, copies, descriptions and other similar documents imported for the procurement or execution of orders in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third countries or to participate in competitions organised in the territory of the Canary Islands.

(j) Forms intended for use in examinations organised in the territory of the Canary Islands by institutions established in another country or in the Peninsula, Balearic Islands, Ceuta and Melilla.

k) Forms intended to be used as official documents in the international traffic of vehicles or goods, in compliance with international conventions.

I) Forms, labels, transport titles and similar documents issued by transport companies or hotel companies established in the Peninsula, Balearic Islands, Ceuta, Melilla or in a foreign country with destination the travel offices established in the territory of the Canary Islands.

m) Forms and titles of transport, bills of lading, carrying letters and other commercial or office documents already used.

n) Official forms issued by national or international authorities and printed according to international models directed by associations of the Peninsula, Balearic Islands, Ceuta, Melilla, or abroad corresponding associations located in the Canary Islands, for distribution.

n) Official publications that constitute the means of expression of the public authority of the country of export, of international organizations, of public entities and bodies of public law, established in the territory for export as well as printed forms distributed by foreign political organisations officially recognised as such in the Member States of the Economic Community on the occasion of elections to the European Parliament or national elections organised from the country of origin, provided that such publications and printed have been subject to the tax in the exporting country and have not been subject to export relief.

35. Newspapers, books and magazines.

36. º Water.

37. Medicines.

38. ° Products recorded by means of magnetic or optical means of educational or cultural use that are regulated.

4. The reimportation of goods made by the person who made the temporary export of the goods to Third Countries or their temporary dispatch to the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC, provided that present in the same state in which they came out.

The exemption will also be granted to the reimportation of the offal and remains of domestic shipwrecked vessels abroad, upon documentary justification of the casualty and the ownership of such goods to the shipwrecked vessel.

In the case of goods which do not appear in the same state in which they came out, for having been the subject of the Peninsula, the Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries of a repair, work, processing or incorporation of other goods, their re-importation shall be exempt only in the following cases:

1. When the operations indicated are carried out on a free basis, under a contractual or legal obligation to guarantee or as a result of a manufacturing vice.

2. Where such operations are carried out on domestic ships or aircraft for which delivery or import is exempt, pursuant to Article 12 of this Act and in this Article.

5. The reimportation of goods by whom it temporarily sent them to the Peninsula, the Balearic Islands, Ceuta, Melilla, or to another State of the European Economic Community, where such goods have been subject in these territories to a tax by the same or similar tribute to the Indirect General Tax Canarian, without the right to deduct or refund.

6. Imports into the ports by vessel owners of fishery products which come directly from their catches and which have not been the subject of processing operations. For these purposes, processing operations are not considered to be intended to preserve the products for marketing, carried out before the first delivery of the products.

7. The provision of services, other than those declared exempt in Article 10 of this Law, the consideration of which is included in the taxable amount of the imports of goods to which they relate, in accordance with the provisions of paragraph 2. Article 25 of this Law.

8. Imports into the consular diplomatic regime in accordance with the applicable legislation.

9. Imports made by international organizations recognized by Spain, and those made by its members with diplomatic status, with the limits and under the conditions laid down in the International Conventions for which such Bodies or in the Agreements on the premises of such bodies.

10. Goods imported under international conventions in force in Spain in the field of cultural, scientific or technical cooperation.

11. The imported goods are covered by the International Conventions in force in Spain to facilitate the traffic with the bordering countries.

12. Commercial imports of goods the overall value of which does not exceed the value of 14 ECUs.

The following products are excluded from this exemption:

a) Those containing alcohol.

b) Perfumes and colony waters.

c) The raw and manufactured tobacco.

d) Goods that are the subject of a correspondence sale.

Article 15. Exemptions in special import arrangements.

1. The following operations are exempt provided that they are carried out in accordance with the provisions of the legislation applicable in the Canary Islands:

(a) Imports of goods into transit or temporary importation arrangements and those made under the system of suspension of inward processing arrangements where the goods to which they relate remain in the schemes or systems indicated without being consumed or used for purposes other than those for which their import was authorised.

The exemption may be conditional upon the lodging of a sufficient guarantee to secure the payment of the tax liability resulting from the non-compliance with the requirements laid down for each of the schemes or schemes. cited.

(b) Imports of goods that are placed in a zone or a Repositories or a Deposit, while remaining in such situations without being used or consumed.

(c) the performance of services, including transport and ancillary operations directly related to the exempted imports described in paragraphs (a) and (b) above.

The exemption does not apply to the provision of services for the purpose of the use or disposal for any title of the goods imported under the temporary importation procedure.

(d) Services provided by intermediaries acting on behalf and on behalf of third parties when they are involved in the operations described in paragraphs (a), (b) and (c) above.

2. The services provided for in paragraph 1 of this Article shall not, under any circumstances, be covered by any exemption under Article 10 of this Law.

CHAPTER III

Place of realization of the taxable event for the concept of supplies of goods and services in international relations and with the Peninsula, Balearic Islands, Ceuta and Melilla

Article 16. Place of delivery of the goods.

In the case of international relations or, where appropriate, with the Peninsula, Balearic Islands, Ceuta or Melilla, the following rules shall apply for the determination of the place of delivery of goods:

1. Rule of thumb:

Deliveries of goods shall be construed as being made available to the acquirer.

2. Special rules:

1. The deliveries of movable tangible property which are situated in the factory, warehouse or warehouse, must be carried out for the purpose of making it available to the acquirer, shall be understood as being carried out in the place where the goods are located. at the time of commencement of dispatch or transport, without prejudice to the

of paragraph 2.

By way of derogation from the preceding paragraph, when the goods to be imported are located in the Peninsula, Balearic Islands, Ceuta, Melilla, any other State at the beginning of the dispatch or transport. Member of the EEC or in Third Countries, the deliveries of the same made by the importer and, where appropriate, by successive transmitts shall be understood as being carried out in the Canary Islands.

2. When the goods are the object of installation or assembly prior to their making available, the delivery shall be understood in the place where the installation or assembly is completed.

3. The renditions of real estate will be understood where they radiate the same.

Article 17. Place of performance of the services.

For the purpose of determining the place of performance of services in relations with the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or with Third Countries shall apply the following rules:

1. Rule of thumb:

1. The services shall be considered to be provided in the place where the seat of the economic activity of the person is situated.

For the purposes of this Tax, the seat of economic activity in the territory where the person concerned centralizes the management and the usual exercise of his business or professional activity shall be understood, provided that, in addition, lack of permanent establishments in other territories.

2. º If the taxable person exercises his or her activity with habituality and at the same time in the Canary Islands and in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Countries, provided the services where the permanent establishment from which the provision of the services is carried out.

Any fixed place of business where the taxable person carries out business or professional activities shall be considered permanent establishment.

In particular they will have this consideration:

(a) The headquarters, branches, offices, factories, workshops, facilities, warehouses, stores and, in general, the agencies or representations authorized to hire in the name and on behalf of the taxable person.

(b) Mines, quarries or scorials, oil or gas wells or other natural product extraction sites.

(c) Construction, installation or assembly works carried out by the taxable person and whose duration exceeds 12 months.

(d) Agricultural, forestry or livestock holdings.

3. The default of the above criteria shall be deemed to be the place of service of the address of the person providing the services.

2. Special rules:

1. The services directly related to buildings, including the rental of safety boxes, shall be understood as being in the place where the immovable property to which it relates is located.

2. Transport shall be understood to be carried out in the Canary Islands or in other territories by the part of the journey carried out in each of them, including airspace and jurisdictional waters.

3. The following services shall be understood to be provided where the following services are physically performed:

(a) Those of a cultural, artistic, sporting, scientific, teaching, recreational or similar character, as well as the accessories of the former.

b) Hotels, restaurant or camping and in general supplies of beverages or food to consume in the same premises.

(c) Accessories for transport, such as loading and unloading, transhipment, warehousing and similar services.

(d) Those made in movable tangible property, including the construction, processing and repair thereof, as well as the expert reports, opinions and assessments relating to such goods.

4. Transport Media Leases:

The determination of the place of performance of the means of transport leases shall be made in accordance with the provisions of paragraph 1 of this Article. However, it shall be understood that the goods are actually used in the following cases:

(a) Where the establishment from which it is situated outside the European Economic Community and the means of transport leased are used within the territory of that Community.

(b) Where the establishment from which it is situated within the territory of the European Economic Community and the means of transport are used outside that territory.

5. The services listed below shall be considered to be provided where the seat of the economic activity or the permanent establishment of the recipient of such services or, failing that, at the place of his/her address:

(a) The disposals and concessions of copyrights, patents, licenses, trademarks or trademarks and other intellectual or industrial property rights.

b) Advertising services.

(c) Professional advisory services, engineering, study cabinet, advocacy, consultants, accounting or tax experts and other analogues, except those covered by the second paragraph, paragraph 1. of this article.

d) The processing of data and the provision of information, including procedures and experiences of a commercial nature.

(e) The insurance, reinsurance, capitalization and financial operations described in paragraphs (16) and (18) of Article 10 of this Act.

(f) The translation, correction or composition of texts, as well as those provided by interpreters.

g) Business management by computer.

h) Staff disposals.

i) Leases of movable tangible property that are not means of transport.

j) Obligations not to fully or partially exercise any of the services referred to in this paragraph

.

(k) Mediation and management in the operations defined in the preceding subparagraphs of this paragraph 5., where the intermediary acts on behalf and on behalf of others.

The provisions of this paragraph shall not apply where the consignee is domiciled in a Member State of the European Economic Community and is not an employer or a professional or the services provided are not related to him. exercise of the business or professional activity of the same.

The burden of proof of the recipient's condition is the responsibility of the taxable person who provides the service.

CHAPTER IV

Tax Devengo

Article 18. Tax accrual.

1. Tax on the supply of goods and services shall be payable:

(a) In the supply of goods when their making is available or, where appropriate, when they are made in accordance with the legislation applicable to them.

By way of derogation from the foregoing paragraph, in the supply of goods made under the contract of sale in instalments with a pact for the purchase of property or the lease of goods with a transfer clause of the property Tax shall be payable on both sides when the goods constituting their object are placed in the possession of the acquirer.

(b) In the provision of services, where they are provided, executed or carried out or, where appropriate, the provision of the goods on which they are placed.

(c) in the transfer of goods between the principal and the commission under contracts of sale commission where the latter acts in his own name, at the time the commission delivers the goods; respective goods.

(d) In the transfer of goods between the comionist and the comitent made under contracts of commission of purchase, when the former acts in his own name, at the time when the commission is given the goods to that they refer to.

e) In the leases of goods, in supplies, in the assignment of copyrights through an editorial contract on effectively realized sales and, in general, in the operations of the successive successive, at the time the share of the price to be understood by each perception is payable.

The provisions of the preceding paragraph shall not apply to the supply of goods made as a result of contracts of sale or similar contracts, in accordance with the provisions of Article 6 of this Law.

(f) In transactions subject to taxation arising from advance payments prior to the taxable event, the tax shall be payable at the time of the total or partial recovery of the price for the amounts actually paid. perceived.

2. The tax on imports shall be due when the importers request them, subject to compliance with the conditions laid down in the applicable legislation.

In the case of the definitive importation of the goods found in the systems or situations of transit, temporary importation, inward processing in the suspension system, Zona Franca, Depository Franco or deposits, the accrual of the tax shall be produced at the time of application for such import, where the conditions required by the applicable legislation are also met.

In transactions defined as imports in paragraphs 2. 2, 3., 4, º and 5. of Article 8 of this Law, the accrual shall take place at the time the disaffection takes place, respectively, changes of conditions or acquisitions referred to in those paragraphs.

CHAPTER V

The taxable person

Article 19. Taxable persons in the supply of goods and services.

1. They are taxable persons of the Tax:

1. General in general, natural or legal persons who have the status of entrepreneurs or professionals and perform the supply of goods or provide services subject to the tax.

2. Exceptionally, the condition of a taxable person is reversed in the business or professional for whom the taxable transactions are carried out, when they are carried out by persons or entities not established in the Canary Islands.

For the purposes of the provisions of this Law, taxable persons who have the seat of their economic activity, a permanent establishment or their tax domicile are considered to be established in a given territory. even if they do not carry out the operations from an establishment located in the Canary Islands.

2. The following are considered to be taxable persons, the communities of property and other entities which, lacking legal personality, constitute an economic unit or a separate property liable to be imposed, when they carry out transactions subject to the tax.

Article 20. Impact of the Tax.

1. The taxable persons referred to in Article 1 (1) of the preceding Article shall have to pass on the amount of the tax on the person for whom the taxable transaction is carried out, with the obligation to bear that tax in so far as the the impact is in accordance with the provisions of this Law and its regulatory standards, whatever the stipulations existing between them.

2. The impact of the tax shall be effected by invoice or equivalent document.

For these purposes, the share of the impact must be reported separately from the tax base, even in the case of administratively fixed prices, indicating the tax rate applied.

The operations in respect of which, in accordance with the provisions of the Regulation, are not required to issue invoices or other documents are exempted from the provisions of the preceding paragraphs of this number.

3. Where the payment of the tax in the form indicated substantially disrupts the development of the business or professional activities, the Ministry of Finance of the Autonomous Government of the Canary Islands may authorise, on request the affected persons or sectors, the impact of the tax on the price, including the expression 'IGIC included' and the tax rate applied.

This authorization will not be required in the operations indicated in the Tax Regulation.

4. The impact shall be entitled to require the invoice to be issued in accordance with the rules provided for in the Regulation provided that it gives due form to the condition of the taxable person or professional liable for the tax and the shares passed on deductibles.

5. The correction of the tax-related charges may be made in the cases and in the form to be determined in accordance with the rules.

However, in the cases of error in the settlement of the shares passed on, or where no quota has been passed on, the correction which implies an increase in the shares may not be effected after a year of issue of the invoice or equivalent document where the addressees are either business or professional taxable persons, or after the delivery of such documents in other cases.

Article 21. Taxable persons on imports of goods.

1. They are taxable persons in the imports of goods who make them.

They are considered importers, provided that the applicable legislation is complied with in each case:

(a) The recipients of the imported goods, whether they are acquirers, transferee or owners of the goods, or consignees acting in their own name on the importation of such goods.

(b) Travellers for goods leading to entry into the Canary Islands.

(c) The owners of the goods in the cases not referred to in (a) and (b) above.

2. They shall be responsible for imports for the purposes of this Tax:

1) Solidarily:

a) Garant associations in the cases determined in International Conventions.

b) Transport companies, when acting on behalf of third parties under International Conventions.

c) Customs agents, when acting on their own behalf and on behalf of their clients.

2. Subsidiary:

Customs agents, when acting on behalf and on behalf of their principals.

CHAPTER VI

Tax Base

Article 22. Taxable base in the supply of goods and services: General rule.

1. The base of the tax is constituted by the total amount of the consideration of the transactions subject to it.

2. In particular, they are included in the concept of consideration:

(a) Fees for commissions, packaging, packaging, transport, insurance, advance benefit premiums, interest on deferred payments and any other credit in favour of delivery or service of the service derived from both the main and ancillary services.

(b) The interest accrued as a result of the delay in the payment of the price.

(c) Subsidies directly linked to the price of transactions subject to the Tax.

d) The taxes and levies of any class that fall on the same taxable transactions, except the Indirect General Tax Canarian and the Arbitrio on Production and Import.

e) Perceptions held under the right by the obligation to perform the provision in cases of resolution in transactions subject to the Tax.

3. They shall not be included in the tax base:

(a) The amounts received by reason of compensation, other than those referred to in the preceding number, which by their nature and function do not constitute consideration or compensation for the supply of goods or services of services subject to the Tax.

(b) Discounts and bonuses which are separately invoiced and which are granted prior to or at the same time as the transaction is carried out and on the basis of the transaction.

The provisions of the preceding paragraph shall not apply where the price of the minorings constitutes remuneration for other transactions.

(c) The sums paid in the name and on behalf of the client, by virtue of the express mandate of the client, which are included in the accounts by whom the goods are delivered or the services provided in the corresponding specific accounts. The taxable person shall be obliged to justify the actual amount of such expenditure and shall not be liable to deduct the tax which, if any, would have taxed them.

(d) In the case of supplies of goods made in any of the Islands, in the case of goods imported or manufactured on another island other than the Canary Islands, the expenditure in question shall not be included in the taxable amount. ports or airports, secure and accurate freight for transfer from the latter island to delivery.

4. Where, by final decision, judicial or administrative decision, or in accordance with the law or the trade practice, the taxable transactions are not fully or partially taken into account, or the price is altered after the date on which the transaction was effected, the Tax base will be amended to the corresponding amount.

5. The taxable amount determined in accordance with the preceding numbers of this Article shall be reduced in the following cases and amounts:

(a) The amount of packaging and packaging that can be reused that have been returned.

b) The discounts and bonuses awarded after the time the operation has been performed, which can be checked by accounting.

6. In the cases referred to in the preceding numbers 4 and 5, the reduction in the tax base shall be conditional on compliance with the requirements which are laid down in the regulations.

7. Where the quotas of the Indirect General Tax on the transactions subject to it were not expressly passed on to an invoice or an equivalent document, the consideration shall be deemed not to include such quotas.

Except as provided in the preceding paragraph:

1. The cases in which the express impact of the tax is not compulsory.

2. º The assumptions referred to in paragraph 2 (e) of this article.

Article 23. Taxable base in the supply of goods and services: Special rules.

1. In transactions whose consideration does not consist of money, it shall be considered as a tax base that would have been agreed under normal market conditions between parties that were independent.

However, if the consideration consists partially in money will be considered tax base the result of adding to the value in the market of the part would not dinerary of the consideration the amount of the money part of the itself, provided that the result is greater than that determined by application of the provisions of the preceding paragraph.

2. Where goods or rights of different nature are transmitted in the same operation and for a single price, the taxable amount corresponding to each of them shall be determined in proportion to the market value of the goods or rights transmitted.

3. Where, where there is a link between the parties involved in the transactions subject to the tax, prices are found to be significantly lower than normal in the market, even where it is agreed that there is no consideration, the tax base it may not be less than the criterion set out in the previous number 1.

The linkage may be tested by any of the eligible media.

For these purposes, it will be assumed that there is linkage:

(a) In the event that one of the intervening parties is a taxable person of the corporation tax, where this is deducted from the regulatory rules of that tax.

(b) In transactions between taxable persons and persons linked to them by employment or administrative relations.

(c) In the operations performed between the taxable person and his or her spouse or their consanguine relatives up to and including the second degree.

4. In the transfer of goods from the principal to the commission under contracts of sale commission in which the commission acts on its own behalf, the tax base shall be constituted by the consideration agreed by the committee less than the amount of the fee.

5. In the transfer of goods from the commission to the principal under contracts of purchase commission in which the commission has acted on its own behalf, the tax base shall be constituted by the consideration agreed by the commission. plus the amount of the commission.

6. In the case of services carried out on behalf of third parties, where the person providing the services acts in his own name, the taxable amount of the transaction between the principal and the commission shall be the consideration of the service arranged by the commission minus the amount of the commission.

7. In the case of acquisitions of services carried out on behalf of third parties, where the person acquiring the services acts in his own name, the taxable amount of the operation carried out between the commission and the principal shall be the consideration of the consideration. of the service agreed by the commission plus the amount of the commission.

8. In the case of transactions the consideration of which has been fixed in foreign currency, the value of the value of the consideration in Spanish currency shall be effected by applying the exchange rate fixed by the Banco de España corresponding to the day of the accrual of the tax or, failing that, the immediate past.

Article 24. Schemes for the determination of the taxable amount in the supply of goods and services.

The taxable base will be determined on a direct basis basis, without any exceptions other than those laid down in this Law and in the rules governing the indirect estimation of taxable bases.

Article 25. Tax base on imports: General rule.

In imports, the tax base will result from adding to the "Customs Value" the following concepts as they are not included in the same:

1. Any tax or tax payable on the occasion of the importation, with the exception of the Indirect General Tax itself, the Arbitrio on the Production and Import and the rights of the Special Tariff of the Arbitrio Insular to the Entry of Goods.

2. The ancillary and complementary expenses, such as commissions, packages, ports, transports and insurance to be produced from the entrance to the Canary Islands to the place of destination within those territories.

For these purposes, it shall be considered as the first place of destination that appears in the transport document under which the goods are introduced into the Canary Islands in operations of unbundling or separation of the cargo in the Canary Islands. the interior of these territories. However, where the place of destination is located on any island and the entry shall be made on a different island from the destination, the 'Customs Value' shall not be added to the expenditure referred to in the preceding paragraph, where such expenditure is such as object to allow the transfer of the goods to the island of destination.

Article 26. Tax base on imports: Special rules.

1. The tax base on imports of goods which had previously been placed under the arrangements for temporary importation, transit, suspension system for inward processing, Zona Franca, Depository Franco or deposit, it will be determined as follows:

1. Dealing with goods originating in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries, the tax base shall be calculated in accordance with the provisions of the Article previous.

2. If the goods were originating in the Canary Islands and had been the subject of an exemption from the tax, the tax base will be the sum of the consideration of the delivery and the services directly related thereto, determined in accordance with the rules contained in Articles 22 and 23 of this Law.

3. Where goods imported into consumption are partly made up of goods covered by paragraph 1. above and in part by goods covered by paragraph 2. the taxable amount shall be the sum of the each of them, determined in accordance with the rules referred to in paragraphs 1 and 2, which are applicable according to their origin.

4. If goods imported into consumption were originating in the Canary Islands and had not been subject to prior delivery, the taxable amount shall be exclusively constituted by the goods covered by the Paragraphs 1 and 2 above, which, where appropriate, have been incorporated into them, determined in accordance with the rules of those paragraphs which are applicable according to their origin.

5. In the taxable amount of the imports to consumption of the goods referred to in the preceding paragraphs shall also be integrated, and provided that they are not included in the above concepts, the consideration for the provision of services directly related to the goods imported, where such benefits have been exempt from the tax and have been effected while they have remained under the These customs procedures. Such consideration shall be determined in accordance with the rules contained in Articles 22 and 23 of this Law.

6. When one or more deliveries of the imported goods were produced while the goods were found under the indicated customs procedures, the tax base will be added to the following concepts:

(a) The consideration of the delivery of the goods made to the importer, increased with that of the goods incorporated into the interiors by the importer himself until the moment of importation if the latter had been acquired by virtue of transactions exempt from the tax. If the consideration for the goods originating in the Peninsula, the Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or Third Countries is internal to their respective "Customs Securities", they shall be taken values for the determination of the tax base.

(b) The consideration of services directly related to the reference goods and which have been borrowed from their delivery to the importer until the time of import.

The consideration referred to in (a) and (b) above shall be determined in accordance with the provisions of Articles 22 and 23 of this Law.

(c) The rights, charges, and ancillary and ancillary expenses included in paragraphs 1 and 2. of the previous article of this Law.

2. In the consumption imports referred to in Article 8 (5) of this Law, the taxable amount shall be determined by applying the rules applicable to the number 1 of this Article, in accordance with the origin of the goods.

3. Reimports of goods which do not appear in the same state in which they came out, for having been the subject of the Peninsula, the Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in Third Countries of a repair, work, processing or incorporation of other goods, the tax base will be determined by the sum of the following concepts:

1. The "Value in Customs".

2. º The rights, taxes and ancillary and ancillary expenses included in paragraphs 1, º and 2, of the previous article of this Law.

4. The time to refer to the determination of the taxable amount or the components thereof shall be that of the tax accrual.

5. The quotas paid in respect of imports of goods referred to in Article 15 (2) of this Law may not be reduced from the quota resulting from the importation into consumption of such goods.

CHAPTER VII

The tax rate

Article 27. Tax rates.

1. The following tax rates will apply in the Indirect Canarian General Tax:

a) A zero type to the following operations:

Deliveries of goods by vessel owners of products which come directly from their catches, when they have not undergone any processing process.

Fetch, production and distribution of water.

Deliveries of medicines.

Deliveries of newspapers, books and magazines.

Deliveries of products recorded by means of magnetic or optical means of educational or cultural use which are determined to be determined.

Delivery of Public Promotion Official Protection Housing or Community Equipment.

Transport of passengers and goods by sea or air between the Canary Islands of the Canary Islands.

(b) A reduced rate, applicable to the operations referred to in Annex I, the amount of which shall be between 1 and 3 per 100 inclusive.

c) Two increased rates that apply to the operations listed in Annexes 2 and 3, respectively between 8 per 100 and 16 per 100, inclusive, and between 20 and 28 per 100 inclusive.

(d) A general rate applicable to goods and services which are not subject to the zero rate or to the reduced or increased rate and the amount of which shall be between 3 and 6 per 100 inclusive.

2. Imports shall be subject to the rates laid down in the Article 1 of this Article for the supply of goods of the same type as those which are the subject of those goods.

3. The tax rate applicable to each transaction shall be that in force at the time of the accrual.

TITLE II

Deductions and Returns

CHAPTER FIRST

Deductions

Article 28. Nature and scope of application.

1. The taxable person may deduct from the contributions of the Indirect General Tax payable as a result of the supplies of goods and services which he or she carries out in the Canary Islands, which, due in that territory, have supported by acquisitions or imports of goods or services which have been provided to them, in so far as such goods or services are used in the conduct of transactions which are subject to and not exempt from the tax or other operations determined in the following article number 4 of this Act.

2. They may make use only of the right to deduct taxable persons who, having the status of employers or professionals, have submitted the declaration provided for in this Law and have effectively initiated the supply of goods or services. the provision of services that constitute the object of their activity.

3. The quotas previously supported at the beginning of the operations indicated in the preceding number may be deducted in accordance with the provisions of this Law.

4. The exercise of the right of deduction for taxable persons to whom the special schemes governed by this Law are applicable shall be carried out in accordance with the rules laid down for each of them.

Article 29. Tax deductible fees.

1. The taxable persons referred to in the foregoing Article may deduct the shares of the Indirect General Tax payable in the Canary Islands which they have borne by direct impact on their purchases of goods or services they are borrowed.

It will also be deductible from the same tax payable in that territory and satisfied to the Public Finance by the taxable person in the following cases:

1. º On imports.

2. In the case of the investment of the taxable person as referred to in paragraph 2. of Article 19 (1) of this Law.

2. In no case shall the deduction of the fees which have not been accrued on the basis of the right or the amount of the fees which are legally applicable.

3. Also, taxable persons who have made acquisitions to retail traders who are exempt under Article 10 (27) of this Law may deduct the Indirect Canarian General Tax that is found implicit in the consideration of these operations. A simplified procedure will be regulated in order to easily determine the implied tax burden.

4. The contributions borne and the tax burden implied in the preceding number shall be deductible in so far as the goods or services the acquisition or import of which determines the right to deduction are used by the taxable person in the performing the following operations:

1. The number of those made in the Canary Islands listed below:

(a) The supply of goods and services that are subject to and not exempt from the Indirect General Tax.

(b) the provision of services whose value is included in the taxable amount of imports of goods within the meaning of this Act.

(c) The supply of goods and services which are exempt under Articles 11 and 12 of this Law, as well as the other definitive exports of goods and shipments of goods of a character definitive to the Peninsula, Balearic Islands, Ceuta or Melilla which are not intended for the performance of the operations referred to in paragraph 2. of this number 4.

(d) Those relating to the suspension regimes, to the Free Zones. Deposits Francs and Deposits that are exempt from the Tax in accordance with the provisions of Article 13 (1) and (2) of this Law and the services exempt in accordance with the provisions of paragraph 1 (c) and (d), and the number 2 of the Article 15 of this Law.

(e) Insurance, reinsurance, capitalization and services relating to them, as well as bank or financial services, which are exempt under the provisions of Article 10 (1) (16) and (18) of this Law provided that the recipient of such benefits is not established in the European Economic Community or that the said operations are directly related to exports of goods to non-Community countries and from the time when the goods are dispatched to Third Countries.

(f) Services provided by travel agencies exempt from the Tax pursuant to Article 54 (3) of this Law.

g) Free deliveries of samples and low-value advertising objects and the provision of free-to-charge demonstration services, performed by each other for the promotion of business or professional activities.

2. º Las realized in the Peninsula, Balearic Islands, Ceuta. Melilla, any other Member State of the EEC or in Third Countries which would give rise to the right of deduction if they had been carried out in the Canary Islands.

5. Taxable persons may only deduct the tax which is satisfied as a result of the imports or is incurred in the purchase of goods or services which are directly related to the exercise of their business or professional activity. This condition shall also comply with the implicit tax burden referred to in the previous number 3.

6. The goods or services concerned shall be considered to be directly related to the pursuit of business or professional activity solely for the purpose of carrying out such activity.

Not only considered to be affected by a business or professional activity:

1. The goods that are intended for such activity and others of a non-business or professional nature for alternative periods of time.

2. º The goods or services that are used simultaneously for business or professional activities and for private needs.

3. The assets acquired by the taxable person who do not integrate into his business or professional assets.

4. The goods intended for the satisfaction of the personal or private needs of the business owners or their family members or of the staff dependent on them, with the exception of those intended for accommodation free of charge, at the premises or premises of the Company, of the staff responsible for the monitoring and safety of the company.

7. Except as provided for in paragraphs 1, 2 and 4, the goods or services which are used for private purposes in an ancillary and notoriously irrelevant manner are exempted from the provisions of paragraph 6.

Article 30. Exclusions and restrictions on the right to deduct.

1. They may not be deducted:

1. The fees incurred as a result of the purchase, import, lease, conversion, repair, maintenance or use of passenger cars and their trailers, motorcycles, aircraft or vessels sports or recreation, as well as accessories, spare parts, fuels, fuels and lubricants for such vehicles and other services relating to such vehicles.

The provisions of the preceding paragraph shall not apply to the following vehicles:

(a) Those intended exclusively for the carriage of goods.

(b) Those intended exclusively for the carriage of passengers by way of consideration, with the exception of the quotas supported by the use of such vehicles which shall in no case be deductible.

c) Those intended exclusively for the teaching of drivers.

d) Those intended by their manufacturers exclusively for the performance of tests, trials, demonstrations or sales promotion.

e) Purchased by independent commercial agents to target them exclusively for their professional displacements.

f) Purchased to be used exclusively for surveillance services.

2. º The fees supported by the travel or travel services of the taxable person himself, his staff or third parties even those related to the business or professional activity.

3. º The quotas supported on purchases or imports of food or beverages, or services of hotel, restaurant or entertainment, except where they are intended to be used or consumed by employees or third parties persons by way of consideration.

4. The quotas supported as a result of acquisitions, leases or imports of jewelry, jewelry and similar articles, garments or personal adornment made with skins of a sumptuous character, tobacco manufactured, tapestries and objects of art and antiques defined in Article 53 of this Law.

5. º The quotas supported as a result of acquisitions of goods or services intended for care for clients, employees or third parties.

2. The following items are exempted from the previous number of acquisitions or imports of the following goods:

1. The ones that are objectively considered to be of exclusive industrial, commercial, agricultural, clinical or scientific application.

2. "2". The purpose of which is to be the subject of delivery or transfer of use, either directly or through transformation, by taxable persons who are used to such operations.

Article 31. Formal requirements of the deduction.

1. Only taxable persons who are in possession of the supporting document of their right may exercise the right to deduct.

The right to deduction is considered as supporting documents:

1. º The original invoice issued by the person performing the delivery or providing the service.

2. The document proving the payment of the import tax.

3. The document issued in the case of investment of the taxable person provided for in this Law.

2. These documents shall only justify the right of deduction if they comply with the provisions of this Law and the regulatory standards laid down for their development.

3. In the case of goods acquired in common by several taxable persons, each acquirer may deduct the corresponding proportional share, provided that in each of the copies of the invoice or supporting document it is In a separate and separate form, the share of the taxable base and the share of each of the acquirers in common.

4. In no case shall the right to deduct in excess of the express and separately recorded tax share which has been passed on or, where appropriate, satisfied according to the supporting document of the deduction, except in the case of the deduction as set out in Article 29 (3) of this Law.

Article 32. Birth of the right to deduct.

1. The right to deduction is born at the time the deductible fees are paid.

2. However, in the case of imports of goods and in the case of investment of the taxable person provided for in this Law, the right to deduct shall be incurred at the time when the taxable person makes the payment of the deductible fees.

Article 33. Exercise of the right to deduction.

1. In the statements-settlements corresponding to each of the settlement periods, the taxable persons may deduct overall the total amount of the deductible fees incurred during that period of the total amount of the Indirect General Tax, payable during the same period of liquidation in the Canary Islands as a result of the deliveries of goods or services provided by them.

2. Deductions shall be made on the basis of the foreseeable destination of the goods and services acquired, without prejudice to their subsequent rectification if that was altered.

3. The right of deduction may be exercised only in the declaration-settlement relating to the period of liquidation in which the holder has borne the deductible or successive instalments, provided that the period of one year has not elapsed. counted from the birth of that right.

The provisions of the preceding paragraph shall be without prejudice to the following numbers 5 and 6.

4. The deductible fees, as well as the tax burden implicit in the acquisitions to retail traders, shall be deemed to be supported, at the time when the holder receives the corresponding invoice or, where appropriate, the supporting document for the right to deduce.

In the cases referred to in the previous Article 2 of this Law, deductible fees shall be deemed to be supported at the time the right to deduction is born.

5. Where the amount of the deductions exceeds the amount of the contributions due in the same period, the excess may be deducted in chronological order in the immediately subsequent declarations-settlements, in the maximum amount possible in each of them and up to a period of five years, counted from the date of termination of the period in which the right to deduction originated.

However, the taxable person may opt for the return of the existing balance in his favour when it comes under the provisions of this Act.

6. In the case of errors or modifications of bases or tax quotas supported, the correction in the deductions shall be made in the form and time limits to be determined in accordance with the rules.

Article 34. Scheme of deductions in differentiated activities.

1. Taxable persons who carry out differentiated business or professional activities shall independently apply the deductions scheme in respect of each of them.

However, when purchases of goods for common use are made in several different sectors of activity, the rules of this Law governing the general pro rata to determine the percentage will apply. the deduction applicable to the acquisitions of such goods, taking into account the full effect of the business and professional operations carried out by the taxable person.

2. For the purposes of the preceding number, differentiated business or professional sectors shall be considered to be those in which the economic activities carried out and the applicable deduction schemes are different.

Deduction schemes shall be considered as distinct if the percentages of deduction which would be applicable in each of the economic sectors differ by more than 50 percentage points.

In any case, differentiated sectors will be considered to be eligible for the simplified scheme and the special arrangements for agriculture and livestock farming, as well as for retail trade activities which are totally exempt by virtue of Article 3 (1) of the Treaty. of the provisions of Article 10.1.27.

3. The Ministry of Finance of the Autonomous Government of the Canary Islands may authorise the application of a system of deduction common to the set of differentiated business or professional activities carried out by the same taxable person, in cases and with the requirements to be determined regulatively.

Article 35. Pro rata rule.

The pro rata rule shall apply where the taxable person, in the course of his business or professional activity, jointly carries out supplies of goods or services which give rise to the right of deduction and other operations of a similar nature which do not enable the exercise of that right.

Article 36. Pro rata classes and application criteria.

1. The pro rata rule has two modes of application: the general pro rata and the special pro rata.

The special pro rata shall only apply in the cases referred to in the following numbers 2 and 3 of this Article. In other cases, the general pro rata shall apply.

2. Taxable persons may choose to apply the special pro-rata rule in the form that is determined to be regulated.

3. The Ministry of Finance of the Autonomous Government of the Canary Islands may require the taxable person to apply the special pro rata in the following cases:

1. º When simultaneously performing distinct economic activities for the purpose of their object.

2. When the application of the general pro-rata is caused by significant distortions in order to the application of the tax.

The relevant agreement shall be notified to the person concerned before 1 December of the year preceding the year in which it is to have effect.

Article 37. The overall pro rata.

1. In the case of application of the rule of general pro-rata, the deduction shall relate only to the part of the tax which, borne in each liquidation period, corresponds to the percentage which the amount of the transactions giving rise to the deduction represents the total of those made by the taxable person.

2. The percentage of the deduction referred to in the preceding number shall be determined by multiplying by one hundred the result of a fraction in which they appear:

1. º In the numerator, the total amount, determined for the corresponding year, of the transactions originating in the right to the deduction, made by the taxable person in the course of his business or professional activity or, where appropriate, in the relevant differentiated activity.

2. º In the denominator, the total amount, determined for the same period of time, of the transactions performed by the taxable person in the exercise of his business or professional activity or, where appropriate, in the activity differentiated, including those which do not give rise to the right to deduct.

The resulting deduction pro rata will be rounded up to the top unit.

3. For the determination of this percentage, it shall not be computed in any of the terms of the relationship:

1. º Operations from establishments located outside the Canary Islands.

2. º Indirect General Tax Fees that have directly taxed the operations referred to in the previous number 2.

3. º The amount of the deliveries of those investment goods that the taxable persons have used in their business or professional activity.

4. º The amount of real estate or financial transactions that do not constitute a typical business or professional activity of the taxable person.

They will have the consideration of financial transactions for these purposes as described in Article 10 (1), paragraph 18 of this Law.

5. º Imports and acquisitions of goods or services.

4. For the purposes of the calculation of the pro rata, the total amount of transactions shall be the sum of the consideration for the same, determined as laid down in Articles 22 and 23 of this Law, even in respect of exempt and non-taxable transactions.

In the case of shipments of final goods to the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or of definitive exports not covered by Article 11 of this Law, it shall be taken as the amount of the transaction, the value within the Canary Islands of the exported products, determined in accordance with Article 23 (1) of this Law.

5. In the case of execution of works with material input, carried out outside the Canary Islands, the value within the Canary Islands shall be taken as the amount of the operation of the materials sent definitively to the Canary Islands. Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or exported to Third Countries, determined in accordance with the provisions of Article 23 (1) of this Law.

6. In order to make the temporary imputation, the rules on the tax accrual laid down in this Law shall apply in respect of all transactions included in the preceding numbers.

However, deliveries of goods to the Peninsula, Balearic Islands, Ceuta. Melilla, any other Member State of the EEC or export, exempt from the tax under Article 11 of this Law, and any other final shipments or exports of goods shall be construed as having been made for these purposes, at the time when the relevant request for departure is accepted by the competent body.

Article 38. Procedure of the general pro rata.

1. The provisional deduction pro rata for each calendar year shall be determined on the basis of the operations of the preceding year.

2. Except as provided for in Article 43 of this Law, taxable persons who are unable to calculate such pro rata for not having started their operations subject to the tax during the preceding year, or who are unable to apply the pro rata pro rata operations of the previous year because the proportion of the same was significantly altered, they will be able to practice the deduction by applying a provisional percentage approved by the Ministry of Finance of the Autonomous Government of the Canary Islands in the the way it is regulated.

3. In the last settlement of the tax corresponding to each calendar year, the taxable person shall calculate the proportion of the final deduction on the basis of the transactions carried out during that period and shall apply the ensuing rules on deductions. provisional

4. The deductible proportion determined in accordance with the preceding numbers of this Article shall apply to the shares supported by the taxable person during the corresponding calendar year, whichever is the date of the acquisition of the the goods or services.

The provisions of the foregoing paragraph shall not apply in respect of non-deductible fees under this Law.

Article 39. The special pro rata.

The exercise of the right to deduct in the special pro rata will be adjusted to the following rules:

1. The tax quotas incurred in the purchase or import of goods or services used exclusively in the conduct of transactions originating in the right to deduction may be deducted in full.

2. The tax quotas incurred in the purchase or import of goods or services used exclusively in the conduct of transactions which do not give rise to the right to deduct may not be deducted.

3. The tax quotas incurred in the purchase or importation of goods or services used only in part in the conduct of transactions originating in the right to deduct may be deducted in the proportion resulting from the application of the overall amount of the same the percentage of the general pro rata regulated in this Act.

Article 40. Deductions for and regularisation of investment goods.

1. Taxable persons may deduct the tax shares which are incurred in the purchase or import of goods which are regulated as investment in accordance with the rules applicable to goods of another type.

2. However, the deductible quotas must be regulated during the four calendar years following the one in which the actual use or entry into operation of the said goods is initiated when, between the definitive pro rata each of those years and the one that prevailed in the year that the impact was sustained, there is a difference of more than ten percentage points.

The regularisation referred to in the preceding paragraph shall also apply where the taxable persons have made, during the year of acquisition of the investment goods, only transactions which do not originate in such and, subsequently, for any of the four years following that in which the effective use or entry into operation of such goods is initiated, this situation is amended, as provided for in that paragraph.

3. In the case of land or buildings, the regularisation shall relate to the nine years following that in which the commencement of its use took place.

4. The period of regularisation of the tax quotas which have been passed on after the start of the effective use or the entry into operation of the investment goods shall begin to be counted from the year in which it occurred. such impact.

5. The income or, where applicable, additional deductions resulting from the adjustment of deductions for investment goods shall be made in the declaration-settlement for the last period of the calendar year to which they relate.

Article 41. Procedure to practice the regularization of deductions for investment goods.

The regularisation of the deductions referred to in the previous article shall be carried out as follows:

1. Known as the percentage of deduction definitively applicable in each of the years in which the regularisation must take place, the amount of the deduction to be determined shall be determined if the impact of the quotas had been supported in the year considered.

2. This amount shall be subtracted from the deduction made in the year in which the impact took place.

3. The positive or negative difference shall be divided by five or, in the case of land or buildings, by ten, and the resulting ratio shall be the amount of the additional income or deduction to be made.

Article 42. Transfer of investment goods during the period of regularisation.

1. In the case of the supply of investment goods during the period of regularisation, it shall be carried out at one time for the time of that period remaining to elapse.

To this effect, if the delivery is subject to the Tax and not exempt, the investment property shall be deemed to have been used exclusively in the conduct of transactions which give rise to the right to deduct throughout the year in which it is made such delivery and in the remainder until the end of the regularisation period.

However, the difference resulting from the application of the provisions of the preceding paragraph shall not be deductible as soon as it exceeds the quota passed on to the acquirer in the transmission of the good to which it relates.

If the delivery is exempt or not subject, the investment property shall be deemed to have been used exclusively for the conduct of transactions which do not give rise to the right to deduct throughout the year in which such delivery was made and the remaining until the end of the regularisation period.

Except as provided for in the preceding paragraph, the supply of investment goods benefiting from the exemptions set out in Article 11 (1) and (2) of this Law, to which the rule contained in the Paragraph 2. of this number 1 corresponding to the deliveries subject to and not exempt. The deductions in this case may not exceed the quota that would result from applying the current tax rate to the internal value of the goods exported or sent to the Peninsula, Balearic Islands, Ceuta, Melilla or any other State. Member of the EEC.

The regularisation referred to in this Article shall be carried out even if the pro rata rule has not been applied in the preceding years.

2. The provisions of this Article shall not apply in the case of transfers of investment goods not subject to the tax in accordance with Article 9 (1) of this Law, with the acquirer being automatically subrogated to the position of the relay.

In such cases, the deductible proportion applicable to the regularization of deductions of these assets will last the same year and the remaining ones may not exceed the one resulting from the average of the applicable in the Company transmitted for the last five years immediately above.

3. The provisions of this Article shall apply where the investment goods are transmitted before their use by the taxable person.

Article 43. Previous deductions at the beginning of business or professional activities.

1. Employers or professionals may deduct the fees previously incurred at the beginning of the actual commencement of the supplies of goods or services which constitute the object of their business, in accordance with the provisions of this Article.

The above paragraph is excepted from the preceding paragraph, the shares supported as a result of the acquisition of land, which will be deductible from the moment when the transactions subject to the Tax on conditions to be established in a regulated manner.

2. The fees incurred prior to the filing of a pre-declaration at the beginning of the business or professional activity in the manner determined by regulation shall not be deductible.

3. Until the beginning of the transactions subject to the tax, an interim percentage of the deduction to be determined by the Ministry of Finance of the Autonomous Government of the Canary Islands shall be applied on the proposal of the taxable person, taking into account the characteristics of future business or professional activities.

4. The provisional deductions shall be adjusted by applying the final percentage overall corresponding to the period of the first three calendar years of the year of the activity.

In the case of investment goods, deductions resulting from the application of the preceding paragraph shall be regulated in accordance with the provisions of Article 40 of this Law for the missing time of the corresponding period of regularised.

5. Where the investment property is the subject of delivery prior to the termination of its own regularisation period, the rules of the previous article of this Law shall apply, without prejudice to the foregoing.

6. The provisions of this Article shall apply in respect of transactions carried out by taxable persons before the commencement of their operations in wholly differentiated sectors of activity.

7. If the delivery of goods or services is interrupted for one year or more, the rules laid down in the preceding numbers relating to the resumption of operations shall apply.

8. Employers or professionals may request the return of the fees which are deductible under the provisions of this Article, in accordance with the provisions of Article 45 of this Law.

9. Taxable persons who have benefited from the deduction scheme provided for in this Article shall not be eligible for the simplified special scheme for a period of three years from the start of transactions subject to the tax.

Article 44. Deduction of deductions.

1. Taxable persons may rectify the deductions made in the cases of error or variation in the amount of the fees to be deducted.

Rectification will be mandatory when it involves a minorage of the deducted fees.

2. The correction of deductions determining an increase of previously deducted quotas may be effected only if the taxable person is in possession of the corresponding invoice or supporting document issued in accordance with the provisions of the Article 20 of this Law. In the case of errors in the settlement of the quota, the correction may not be made after the expiry of the period of one year from the date of issue of the invoice or equivalent document.

CHAPTER II

Returns

Article 45. Returns in general.

1. Taxable persons who have not been able to make the deductions from a liquidation period in accordance with the procedure laid down in this Law, for exceeding the amount of the fees payable, shall be entitled to request the return of the balance to your existing advantage at 31 December of each year; in the manner determined in the Tax Regulation.

2. The right to repayment of the balance in favour of the taxable persons existing at the end of each settlement period may be established, with reference to particular sectors or undertakings.

Article 46. Returns on export.

1. Taxable persons who, during the preceding calendar year, have made final exports to third countries or shipments of a definitive nature to the Peninsula, the Balearic Islands, Ceuta, Melilla or any other Member State of the EEC an overall amount exceeding the limit to be determined by regulation, shall be entitled to the return of the balance to its existing advantage at the end of each settlement period up to the limit resulting from the application of the rate corresponding to the rate Tax applicable to the total amount, in that period, of the exports and shipments mentioned.

In the Budget Law of each year of the Autonomous Community of the Canary Islands, the limits set in the previous paragraph may be modified.

2. For the purposes of the preceding number, the amount of exports and shipments indicated shall be the total sum of the corresponding consideration or, failing that, of the values within the goods exported and those sent to the Peninsula, Balearic Islands, Ceuta and Melilla.

3. The procedure for the exercise of the right laid down in the preceding paragraph shall be determined.

Article 47. Guarantees of returns.

The Ministry of Finance of the Autonomous Government of the Canary Islands may require the taxable persons to provide sufficient guarantees in the cases of refunds referred to in the two preceding articles of this Law.

Article 48. Refunds to persons not established in the Canary Islands.

1. Employers or professionals not established in the Canary Islands may exercise the right to refund of the Indirect General Tax which they have satisfied or, where appropriate, have been passed on to them, including the charge tax on purchases of goods from retail traders, in accordance with the provisions of this Article and in the rules of procedure to be laid down in regulation.

2. They are requirements for the exercise of the right to return referred to in the preceding number.

1. º that persons or entities intending to exercise it are established in the Peninsula, Balearic Islands, Ceuta, Melilla, in other Member States of the European Economic Community or in third countries provided that, in this Case, reciprocity in favor of the businessmen and professionals established in Spain.

2. Do business or professional activities subject to the Value Added Tax or an analogous tribute in those territories.

The performance of such activities must be credited in the form that is determined to be regulated.

3. º That during the period referred to in the application, the interested parties have not made in the Canary Islands deliveries of goods or services subject to the Indirect General Tax Canarian The following are related:

(a) The transactions in which the taxable persons of the tax are the persons for whom they are made, according to the alleged investment of the taxable person provided for in this Law.

(b) The carriage and the provision of ancillary services to them, exempt under the provisions of this Act in Article 11, except their number 2, in Article 12, in Article 13 (1) and (2), in Article 12 (7) of the Treaty. Article 14 and Article 15.

3. The natural or legal persons in which the requirements described in the preceding numbers are met shall be entitled to request the return of the Indirect General Tax which they have incurred in the acquisitions or imports of goods or in the services which have been provided to them in the Canary Islands during the period of time to which the application applies, in so far as the goods or services are used for the purposes of the operations described in the number 4, paragraph 1, points (b), (c) and (d), and Article 29 (2) of this Act, or those identified in the Previous number 2, paragraph 3, point (a).

For the determination of the quotas to be returned, the actual and actual destination of the goods or services purchased or imported will be treated, without the regulatory norms of the pro rata rule being applicable to these effects. contained in this Law.

4. The limitations and exclusions of the right to deduct provided for in the Law will apply to the refunds regulated in this article.

5. Refund applications may only relate to the immediately preceding settlement period or calendar year.

6. The persons or entities which, not being established in the European Economic Community, intend to make use of the right to the refund regulated in this article must first appoint a legal representative resident in Spain, at whose charge will be compliance with the relevant formal or procedural obligations and which will be jointly and severally liable in cases of improper return.

The Public Finance of the Autonomous Community of the Canary Islands may require such representative to be sufficient for these purposes.

7. Refund applications shall not be eligible for a total amount less than the figure to be determined by regulation.

TITLE III

Special Regimes

CHAPTER FIRST

Simplified regime

Article 49. Simplified scheme.

1. The simplified scheme may be granted by taxable persons, natural persons, whose total volume of operations during the immediately preceding calendar year would not exceed 50 million pesetas.

2. The simplified scheme shall apply to the economic sectors and to the business or professional activities which are regulated.

3. The simplified scheme shall not be eligible for economic activities not covered by the special scheme, except those covered by the special arrangements for agriculture and livestock farming and the activities of trade to the as a result of which they are wholly exempt under the provisions of Article 10.1.27.

Article 50. Content of the simplified scheme.

1. For the purposes of applying the special rules laid down in this Chapter, the minimum amount of the Indirect General Tax quotas to be entered by the taxable person during each of the years shall be determined by an objective estimate. natural conditions under which the special scheme is applicable.

2. The objective determination of the quotas referred to in the preceding number shall be based on the indices or modules which, for each economic sector or for each business or professional activity, are fixed by the Government's Ministry of Finance. Autonomous Canary Islands.

3. If the actual amounts of the quota to be entered by the taxable person checked by the Administration are different from those declared by the taxable person in accordance with the provisions of the preceding number 2, the settlement shall be carried out (a)

the extent that it does not comply with the provisions of this Annex;

4. In the event of omission or distortion of the accounts of an operation by a taxable person who has not opted for the simplified scheme, the tax payable charges may not be lower than those resulting from the application of that scheme. regime, without prejudice to the penalties provided for.

5. Taxable persons who have opted for the simplified scheme and who have incurred in default or distortion of the indices or modules referred to in the preceding number 2 shall be obliged to pay the tax quotas resulting from the application of that scheme, without prejudice to the penalties provided for.

6. Imports and transmissions of real estate and investment goods shall be excluded from the simplified scheme.

7. This simplified scheme will be regulated and the formal and registered obligations to be met by the taxable persons covered by it will be determined.

Article 51. Determining the volume of operations.

1. For the purposes of Article 49 of this Law, the total amount, excluding the Indirect Canarian General Tax, of the supplies of goods and services, including those exempted, made by the Member State, shall be deemed to be a volume of operations. a taxable person in all his business and professional activities, the accrual of which would have occurred during the calendar year concerned.

2. For the purpose of determining the volume of transactions, no account shall be taken of the occasional nature of the real estate transactions, the financial transactions referred to in Article 18 (18) of this Law or the supply of goods. qualified as investment in relation to the transmission.

CHAPTER II

Special arrangements for used goods

Article 52. Special arrangements for the goods used.

1. Employers who habitually carry out transfers of used goods may choose to apply the special scheme provided for in this Article, subject to the provisions laid down in this Article and to the rules laid down in the rules laid down in this Article. for its development.

2. For the purposes of this Article, any used property of a movable nature which, having been used prior to the acquisition by the taxable person under this special scheme, is liable to new use, directly or after repair.

The following goods will not have the following condition:

1. Those acquired from other taxable persons, except in cases where the deliveries in respect of which the acquisition was made would not have been subject to or would have been exempt or, where appropriate, have been taxed. also subject to the rules laid down in this Chapter II.

2. º Those imported directly by the relay.

3. º Those that have been used, renewed or transformed by the taxable taxable person himself.

4. Industrial Process Waste.

5. The packaging and packaging.

6. º. Integrated in whole or in part by stones or precious metals, or by natural or cultured pearls.

7. º Recovery materials.

3. In the supply of used goods by taxable persons who have opted for the special scheme provided for in this Article, the taxable amount shall be 30 per 100 of the consideration determined in accordance with the provisions of this Article. provided for in Articles 22 and 23 of this Law.

However, the taxable person may choose to consider the difference between the consideration of the transfer and the acquisition of the well-transmitted, determined in accordance with the provisions of the Articles 22 and 23 of this Law and justified in the manner in which it is established. The option shall be exercised within the time limits and shall be determined in the implementing rules of this Law and shall have effect throughout the calendar year immediately thereafter.

In no case shall the tax base referred to in the preceding paragraph be less than 20 per 100 of the consideration of the given transmission, as set out in Articles 22 and 23 of this Law. However, in the case of used passenger cars, this percentage shall be 10 per 100.

CHAPTER III

Special scheme for art objects, antiques, and collection objects

Article 53. Regime of art objects, antiques and collectibles.

1. Taxable persons who habitually carry out supplies of artistic objects, antiques and collectors ' items of a movable nature may choose to apply the rules for determining the taxable amount provided for in Article 3 (3). prior to this Law, in the form that is regulated.

The provisions of the preceding paragraph shall not apply to the deliveries of the following goods:

1. º The built, renovated or transformed by the taxable person himself or on his own.

2. º. Integrated in whole or in part by natural or cultured pearls, stones or precious metals.

3. Those acquired from other taxable persons, except in cases where the deliveries in respect of which the acquisition was made would not have been subject to the tax or would have been exempt from it.

4. º Those imported directly by the taxable person.

2. For the purposes of the preceding number, the following definitions shall apply

1. Art Objects: The paintings and drawings made by hand and the sculptures, prints, prints and lithographs, provided that, in all cases, they are original works.

2. Antiquities: Useful and ornamental movable property, excluding works of art and collectibles, which are more than one hundred years old and whose original fundamental characteristics would not have been altered by modifications or repairs carried out over the last hundred years.

3. "Collection Objects": Objects that present an archaeological, historical, ethnographic, paleontological, zoo, botanical, mineralogical, numismatic or philatelic interest and are likely to be part of a collection.

CHAPTER IV

Special arrangements for travel agents

Article 54. Special arrangements for travel agencies.

1. The special arrangements for travel agencies shall apply:

1. To operations carried out by travel agents when they act in their own name in respect of travellers and use goods delivered or services provided by other entrepreneurs in the course of the journey professionals.

2. The operations carried out by the tour operators in which the previous circumstances are present.

2. The special regime of travel agencies is not a waiver. The taxable persons to whom the special scheme applies shall not be eligible for the simplified special scheme.

3. Services provided by travel agents are exempt from the tax when the supplies of goods or services, acquired for the benefit of the traveller and used to make the journey, are carried out outside the territory of the European Economic Community.

In the event that the aforementioned supplies of goods or services are only partially carried out within the territory of that Community, only the part of the service provision of the agency shall be exempt from the exemption. corresponding to those made outside the European Economic Community.

4. The operations carried out by the agencies in respect of each traveller for the purpose of carrying out a journey shall be considered as a single service, even if several deliveries or services are provided in the framework of the said journey.

This benefit shall be deemed to be carried out at the place where the agency has established the seat of its economic activity or has a permanent establishment from which it carries out the operation.

5. The tax base will be the gross margin of the travel agency.

For these purposes, the gross margin of the agency is considered the difference between the total amount charged to the client, excluding the Indirect General Tax that taxes the transaction, and the amount of cash, taxes included, supplies of goods or services which, carried out by other employers or professionals, are acquired by the agency for use in carrying out the journey and are directly for the benefit of the traveller.

For the determination of the gross margin of the agency the exempt transactions of the tax shall not be computed by virtue of the provisions of the preceding number 3.

6. The fee may not be entered on the invoice separately from the taxable amount and shall be understood in such a case to be included in the price of the transaction.

7. The taxable person shall determine the taxable amount by transaction, as provided for in the preceding number 5.

However, they may choose to determine on a global basis for each settlement period the taxable amount corresponding to the operations to which the special scheme applies and do not enjoy exemption under the following procedure:

1. The overall amount charged to customers, Indirect Canarian General Tax included, corresponding to the transactions whose accrual has occurred in the said settlement period, the total amount of cash shall be subtracted, taxes included, the supply of goods and services provided by other employers or professionals who, acquired by the agency in the same period, are used in the conduct of the journey and are in the interest of the traveler.

2. º The overall tax base will be found by multiplying the resulting amount by one hundred and dividing the product by one hundred plus the general tax rate established in this Law.

The deadlines and form for the exercise of this option will be determined.

8. Travel agencies to which this special scheme applies may practice their deductions under the terms set out in this Act.

However, they will not be able to deduct the tax passed on purchases of goods and services that directly benefit the traveler.

9. Regulatory special rules may be laid down for formal, accounting or registration obligations of travel agencies.

CHAPTER V

Special arrangements for agriculture and livestock farming

Article 55. Special arrangements for agriculture and livestock farming.

1. Holders of agricultural, forestry or livestock holdings shall be subject to the special arrangements provided for in this Chapter, unless they are waived.

The waiver will produce effects as soon as it is not revoked by the person concerned and, in any case, in a minimum period of three years.

2. For the purposes of the preceding number, agricultural, forestry or livestock holdings shall be considered to directly obtain natural products, plants or animals from their crops or holdings, and in particular the following:

1. º Those that carry out agricultural activities in general, including the cultivation of ornamental, aromatic or medicinal plants, flowers, mushrooms, spices, seeds or plants, whatever the place of obtaining the products, even if they are greenhouses or nurseries.

2. The dedicated to forestry.

3. Animal husbandry, including poultry, beekeeping, cuniculture and sericculture, provided that it is linked to the exploitation of the soil.

4. The hatcheries of molluscs, crustaceans and fish farms.

3. The special arrangements referred to in the earlier numbers may not be extended to the non-commercial holdings or to independent livestock farming.

4. They shall not benefit from the special scheme provided for in this Article by any of their economic activities:

1. Who by themselves, or through third-party mediation, fully or partially submit products to industrial processing, manufacturing or manufacturing processes.

No consideration shall be given to acts of mere preservation of the goods referred to in the preceding paragraph, such as refrigeration, freezing, drying, sorting, cleaning, packaging or packaging, uncascarated, uncut, chipped, chopped, disinfection or disinterment.

2. Who deliver the products they have mixed with others acquired from third parties, even if they are identical or similar in nature, except for those that are the subject of mere preservation.

5. Holders of agricultural, forestry or livestock holdings may benefit from the special scheme provided for in this Article, even if they perform at the same time other business or professional activities other than those described in numbers I and 2. previous. In such a case, the special scheme shall only produce effects in respect of the activities to which it relates.

For the purposes of the preceding paragraph, different business activities shall be considered, inter alia, the following:

1. The placing on the market of natural products in fixed establishments located outside the place where agricultural, forestry and livestock farms are located.

2. The recreational activities of recreational character.

6. On an ancillary basis, the holders of the holdings described in number 2 of this Article may provide to third parties, with the means ordinarily used on their holdings and without loss of the option to the special scheme, services which contribute to the performance of their productions and, in particular, the following:

1. The work of planting, planting, cultivation, harvesting and transport.

2. The packaging and packaging of the products, including drying, cleaning, peeling, cutting, silage, storage and disinfection.

3. The breeding, keeping and fattening of animals.

4. º Technical assistance.

5. The leasing of the useful, machinery and facilities normally used for the carrying out of their agricultural, forestry or livestock activities.

6. The elimination of harmful animals and plants and the fumigation of plantations and land.

7. The exploitation of irrigation or drainage facilities.

8. ° The logging, entresaca, splinter and tree cutting, forest cleaning and other complementary forestry services of a similar nature.

7. The provisions of the preceding number 6 shall not apply if the amount of turnover for the set of ancillary services provided exceeds 20 per 100 of the total volume of operations of the holding during the preceding year. agricultural, forestry or livestock.

Article 56. Content of the special arrangements for agriculture and livestock farming.

1. The taxable persons to whom the special arrangements for agriculture and animal husbandry apply shall not be subject as regards the pursuit of these activities, the obligations for the settlement and payment of the tax, to those of an accounting nature. or register or, in general, any of those laid down in Titles IV and V of Book I of this Law.

The transactions referred to in Article 19 (1) (2) of this Law, the transmissions of immovable property and the obligations referred to in Article 19 (1) of the Treaty are exempted from the provisions of the preceding paragraph. Article 55, number 1, point (a), paragraph 1. of that Act.

2. The taxable persons referred to in the preceding number shall be entitled to receive a flat-rate compensation for the contributions of the Indirect General Tax which have been passed on to them in the purchase of goods or services. which have been lent to them. Such compensation shall be the amount resulting from the application of the percentage to be determined at the selling price of the natural products obtained on their holdings and of the ancillary services referred to in the previous Article of this Law.

For the purposes of determining such prices, indirect taxes on such operations and ancillary and ancillary expenses, such as charges, transport, insurance or financial charges, shall not be taken into account. separately to the buyer.

3. The fixing of the percentages referred to in the previous number will be made by the Government of the Nation, on a proposal from the Canary Islands, based on the macroeconomic studies concerning exclusively agricultural, forestry or livestock subject to this special scheme. In any event, the application of the percentages approved may mean that the whole of the employers subject to the special scheme may receive compensation in excess of the tax they have imposed on the purchase of the goods or on the services that have been provided to them.

The Government of the Nation may establish a single percentage or differentiated percentages according to the nature of the operations.

Article 57. Refund of compensation.

1. Employers or professionals who acquire natural products or ancillary services directly from taxable persons under the scheme shall be required to repay the compensation referred to in the previous Article. special agricultural or livestock farming.

2. The provisions of the preceding number shall not apply where the taxable persons to whom the special arrangements for agriculture and animal husbandry apply carry out deliveries of natural products from fixed commercial establishments situated in the where they radiate their agricultural, forestry or livestock holdings.

3. The reimbursement of compensation shall be made at the time of the delivery or service referred to in the preceding number 1 in the manner in which it is regulated.

4. In any event, the Public Finance of the Autonomous Community of the Canary Islands shall reinstate the compensation for the final shipments to the Peninsula, Balearic Islands, Ceuta or Melilla, as well as to the final exports made by the taxable persons subject to this special scheme.

5. They shall not be required to repay the compensation referred to in this Article by the acquirers of the goods or recipients of the services listed below:

1. The taxable persons also covered by the agricultural and livestock system.

2. º Those who do not have the status of employer or professional.

3. The taxable persons of this Tax who exclusively perform transactions exempt from it, other than those listed in Article 29, number 4 of this Law.

6. Any disputes which may arise with reference to the compensation for this special scheme, both as regards the origin and the amount thereof, shall be considered to be of a tax nature for the purposes of the relevant provisions. economic-administrative claims.

7. The holders of agricultural, forestry or livestock holdings to whom the special rules laid down in this Chapter do not apply shall be reintegrated into the public finances of the Autonomous Community of the Canary Islands. received, without prejudice to any other obligations and responsibilities which may be required of them.

Article 58. Deduction of compensation in the special scheme for agriculture and livestock farming.

1. Taxable persons who have satisfied the compensation referred to in the preceding Article may deduct their amount from the contributions due from the operations carried out by applying the provisions of Title II of Book I of this Law. of the supported quotas.

2. To exercise this right the taxable persons shall be in possession of a receipt issued by themselves for each acquisition, in the form and with the requirements to be determined regulatively.

The receipt must be signed by the provider.

3. The acquirers of the goods or services shall write down the receipts issued in a special register in the manner in which it is determined to be regulated.

TITLE IV

Liabilities of taxable persons

Article 59. Obligations of taxable persons.

1. Taxable persons shall be obliged to:

(a) Submit statements regarding the commencement, modification and cessation of activities that determine their attachment to the Tax, within the time limit and with the requirements to be regulated.

(b) To issue and deliver invoices or equivalent documents from the operations in which they are involved, adapted to the general rules governing the duty to issue and deliver an invoice for employers and professionals.

(c) Keep the invoices received, the accounting documents, the documents indicated in the letter above and the duplicates of the invoices issued during the period of limitation of the tax. Where the invoices received relate to investment goods, they shall be retained during their corresponding regularisation period and the following five years.

(d) Without prejudice to the provisions of the Trade Code, keep records and records in accordance with what is to be regulated.

e) To submit information regarding economic operations to third parties at the request of the Autonomous Community of the Canary Islands.

(f) Present the statements-settlements for each settlement period in the form and time-limits to be regulated.

g) To register in the corresponding tax register, in the form, with the requirements and for the purposes to be determined regulatively.

2. Taxable persons who perform fundamentally the exempt transactions which are determined by regulatory means may be exempted from the obligations which, as mentioned in the preceding number 1, are expressly indicated.

Article 60. Accounting documents.

1. Without prejudice to the provisions of the Trade Code, employers and professionals subject to the tax shall take due form the books or records which are to be established in a regulated manner.

2. Accounting shall enable the accuracy to be determined:

(a) The total amount of the Indirect General Tax Canarian that the taxable person has passed on to his clients.

b) The total amount of the Tax supported by the taxable person.

3. All transactions carried out by taxable persons in the course of their business or professional activities shall be recorded in the relevant records within the time limits laid down for the settlement and payment of the tax.

4. The Ministry of Finance of the Autonomous Government of Canary Islands: may amend the registration obligations set out in this article in respect of certain business or professional sectors.

TITLE V

Tax Management

Article 61. Settlement of the Tax.

1. Taxable persons shall determine and enter the tax liability at the place, form and time limits which they regulate.

It may be established, in the cases and through the procedure to be determined, by the Tax Administration of provisional provisional liquidations.

2. The import operations shall be settled in the form provided for in the rules of the Arbitration for Production and Import in the Canary Islands and the Special Tariff of the Arbitrio to the Entry of Goods.

3. The procedures for the liquidation of the tax, the means and time limits for the payment of the tax debts resulting from the liquidations and the guarantees resulting from the payment of the tax liabilities will be determined. corresponding tax obligations.

Article 62. Competence in the administration of the Tax.

The management, liquidation, collection and inspection of the Indirect Canarian General Tax, as well as the review of the acts dictated by it, will correspond to the competent bodies of the Autonomous Community of Canary Islands.

TITLE VI

Violations and penalties

Article 63. Infringements and penalties.

Tax violations in this tax will be qualified and sanctioned in accordance with the provisions of the General Tax Law and other rules of general application.

TITLE VII

Attribution of Tax Performance

Article 64. Attribution of Tax Performance.

The amount of the liquid collection derived from the tax debts of the Indirect Canarian General Tax, after the expense of administration and management of the tax is discounted, will be distributed as follows:

(a) 50,35 per 100 to the Autonomous Community of the Canary Islands.

b) The remaining 49.65 per 100 to the Island Cabildos. The distribution of this percentage between the various Island Cabildos will be carried out according to what is established in the Third Additional Disposition of this Law. In turn, from the amount corresponding to each Island Cabildo, deducted the management costs, this will be reserved a 60 per 100 that will appear as income in its ordinary budget, and the remaining 40 per 100 will distribute it and will free the Ayuntamas of your island, according to the Municipal Letters or bases in force at any time.

TITLE VIII

Transient regime

Article 65. General transitional arrangements.

1. In addition to those provided for in Title II of this Book I, taxable persons carrying out production or wholesale activities of body property may make deductions from the quotas of the Insured Luxury on the Lüjo in the acquisition or satisfaction of the importation of goods or products that integrate the stocks of the taxable persons at the time of the beginning of the Indirect General Tax.

2. The taxable persons of the tax shall make the deductions referred to in the preceding number 1 by dividing them by equal parts in each of the statements-settlements of the Indirect General Tax Canarian, corresponding to the first year of application of the tax.

3. For the purposes of this Article, the criteria for valuation admitted in the Corporate Tax or, where applicable, in the Income Tax of the Physical Persons shall apply.

Article 66. Transitional arrangements for investment goods.

1. Taxable persons may deduct 4 per 100 from the consideration corresponding to the acquisitions of qualifying body goods which are regulated as investment, the transmission of which would have been subject to and not exempt from the General Tax on the Traffic of Enterprises.

2. However, in the case of goods the transmission of which has been granted as a bonus from the General Tax on the Traffic of Enterprises, the amount to be deducted shall be reduced by the same proportion as that applicable in the allowance. In the case of exemption or non-application of the said tax, no deduction shall be made.

3. This deduction shall relate to goods acquired during the year preceding the entry into force of the Indirect General Tax Canarian and duly inventoried on 31 December of that year.

4. The right to the deduction regulated in the preceding numbers shall be applied in the last declaration-settlement for the year of entry into force of the tax and for the following three years by fourths.

Article 67. Requirements of the declarations in the transitional regime.

1. The taxable persons established in the Canary Islands may make use of the deductions under the transitional arrangements.

2. They shall determine the right to deduct body property which, on the date of entry into force of the Indirect General Tax, is integrated into the business or professional assets of the taxable person exercising the deduction and are materially located in the territory of the Canary Islands.

For the purposes referred to in the preceding paragraph, goods shall be treated as materially situated in the territory of the Canary Islands which, on the date indicated, are in temporary export situation and the means of transport registered in the territory of application of the tax.

3. For the purposes of the deductions for General Tax on the Traffic of Enterprises governed by this Title VIII, the goods shall be deemed to be acquired and integrated into the assets of the taxable person or, where appropriate, transmitted and excluded from the such assets, on the date on which the accrual of the tax has occurred and on the part of the tax.

4. Without prejudice to the provisions of this Title, the exercise of the right to deduct shall be conditional upon compliance with the rules laid down in Title II of this Law to the extent that they are applicable.

The pro rata applicable to these effects shall in any case be that corresponding to the first year of validity of the Tax, without resulting in the adjustment of deductions for investment goods.

The pro rata provisionally applicable during the first year of the tax will be the one that would result if the Indirect Canarian General Tax had been in place during the previous year.

It will be an essential requirement for the exercise of the right to deduct being in possession of the invoice issued by the suppliers.

5. Taxable persons who have not been able to make deductions under the transitional arrangements for the procedure provided for in this Title, having exceeded the amount of the deductions from the amount of the quotas accrued, may make use of the right to return in accordance with the provisions of Articles 45 and 46 of this Law.

6. The accounting requirements, formal requirements and the procedure for the exercise of deductions under the transitional arrangements shall be regulated.

Article 68. Guarantees and exclusions from the transitional regime.

In order to be able to practice the deductions referred to in this Title, the justification that the tax corresponding to the goods acquired or imported was entered into the Treasury or, where appropriate, its impact on the the periods indicated.

BOOK II

Arbitrio on Production and Import in the Canary Islands

PRELIMINARY TITLE

Nature and space scope

Article 69. Nature.

The Arbitrio on Production and Import is an indirect state tax that taxes the production or production, as well as the importation of all kinds of personal property in the Canary Islands, according to the rules of this Law.

Article 70. Spatial scope.

The Arbitration for Production and Import shall apply in the territorial area of the Canary Islands, without prejudice to the provisions of the Treaties and International Conventions.

For the purposes of this Arbitration, the spatial scope referred to in the preceding paragraph shall comprise the territorial sea up to the limit of 12 nautical miles defined in the third article of Law 10/1977, of 4 January, and the space corresponding air.

TITLE FIRST

Taxation of Subject Operations

CHAPTER FIRST

Delimitation of the taxable fact

Article 71. Taxable fact.

1. It is the taxable fact of this Arbitration for the production or production of movable tangible property, even if carried out by means of work carried out by an employer in the course of his business, as well as the importation of such goods in the territorial area of the Canary Islands.

2. For the purposes of this Arbitrio they shall be considered to be included among the production activities of the extractive, agricultural, livestock, forestry, fishing, industrial and other similar activities. The work carried out shall also be considered to include the construction or assembly of movable tangible property by the employer, after the owner of the work has been commissioned.

3. For the purposes of this Arbitrio, production or production operations shall not be considered to be intended to ensure the preservation or commercial presentation of the goods, which are considered as usual manipulations in customs legislation.

Article 72. Concept of employer.

1. Employers are considered to be persons or entities who habitually carry out business activities.

2. They are business activities as referred to in the first paragraph of Article 5 of this Law.

Article 73. Concept of the import of goods.

1. For the purposes of this Arbitrio, the entry of the goods in the territorial scope of the Canary Islands, whatever their origin, the purpose for which they are intended or the condition of the importer, is understood to be imported.

2. Without prejudice to the provisions of the above paragraph, the authorization for consumption in the Canary Islands of the goods which are regulated in any of the special schemes referred to in the Regulation is also considered to be imported. Article 77.

CHAPTER II

Exemptions

Article 74. Exemptions in internal operations.

1. They are exempt from the Arbitrio:

(a) Production and production of natural goods by farmers, cattlemen, fish farmers or shipowners of fishing vessels, obtained directly from crops, holdings or catches, when sold, transmitted or delivered without which they have been submitted prior to their transmission to any processing process.

b) The paintings, drawings, watercolors, prints, prints, lithographs and original sculptures made by their authors.

c) The production or processing of first-need items for food that are regulated to be determined.

(d) The construction of vessels primarily affected by international maritime navigation and those exclusively dedicated to rescue, maritime assistance or coastal fishing, as well as the objects incorporated therein. necessary for their exploitation, including the fishing equipment, provided that they are registered in the Canary Islands.

2. Total or partial exemptions may be granted on a temporary basis to goods produced or manufactured by the industries installed in the territorial area of the Canary Islands belonging to the economic sectors protected by the law. 50/1985 of 27 December Regional incentives for the correction of inter-territorial economic imbalances.

Article 75. Exemptions relating to exports and to transactions treated as such.

1. It is exempt from the Arbitration for the production or production of goods in the Canary Islands, sent definitively to the rest of the national territory, any other Member State of the EEC or definitively exported to Third Countries by the broadcast or by a third party on behalf and on behalf of the third party.

2. It is also exempt from the Arbitrio production or production in the Canary Islands of goods destined for the victualling of the following vessels:

a) Those who perform international maritime navigation.

(b) Affections to salvage or maritime assistance.

c) The affections to the coastal fishing, without the exemption being extended to the on board provisions.

(d) Those belonging to the Armed Forces of the Member States of the European Economic Community.

3. It shall also enjoy exemption in this Arbitration, the production or production of goods in the Canary Islands which are intended for the purpose of providing aircraft with commercial, regular or irregular lines belonging to the Armed Forces or intended for salvage activities.

Article 76. Exemptions in imports of goods.

1. The definitive imports into the Canary Islands of the following goods are exempt from this Arbitration:

(a) Blood and other fluids, tissues and other elements of the human body for medical or research purposes or for processing for identical purposes.

(b) Ships essentially affected by international and inter-island maritime navigation and those dedicated exclusively to rescue, maritime assistance or coastal fishing, as well as the objects incorporated therein. necessary for their exploitation, including the fishing equipment, provided that they are registered in the Canary Islands.

(c) Aircraft intended to be used exclusively by companies which are essentially engaged in international and inter-island air navigation, and the objects incorporated in or used for such aircraft. their holding on board the holding.

(d) the products of victualling that during the permanence of the ships and aircraft in the Canary Islands have been consumed or are on board, provided that each and others carry out international navigation.

(e) Products used in the victualling of ships and aircraft engaged in international navigation, when imported by the shipping companies using one or more other vessels.

f) Bank notes and securities securities.

g) paintings, drawings, watercolors, prints, prints, sculptures and lithographs provided that they are original works and that the import is carried out directly by their authors.

h) The first-need feeding items that are regulated to be determined.

i) The assets of equipment belonging to economic sectors protected by Law 50/1985 of 27 December. Also, equipment intended for agricultural, livestock, forestry and fishing holdings and those used in desalination and treatment plants, as well as those for the processing of solid, toxic and health protection for the environment.

j) Fertilizers, seeds, insecticides and pesticides used in agriculture.

k) Goods destined for the State, Autonomous Community of the Canary Islands and Local Authorities of the Canary Islands as soon as they come to their favor on the basis of certification that they are acquired from their budgets. Goods destined for the Member States of the European Economic Community.

l) Medicines.

ll) Newspapers, books and magazines.

m) Products recorded by means of magnetic or optical means of educational or cultural use which are regulated as determined.

n) bullion gold intended for deposit in financial institutions to support the issuance of certificates of such deposits.

2. In addition, the definitive imports into the Canary Islands of certain goods from the EEC, Ceuta, Melilla and Third Countries are exempt from this Arbitration, provided that they are motivated by changes of residence, For the purposes of social interest, they serve for educational, scientific or cultural purposes, consisting of objects intended for commercial exploration, are included in the system of travellers and small consignments, in the case of imports of goods carried out within the framework of certain international relations, or Official publications, print and miscellaneous documents.

For the enjoyment of this exemption it will be necessary for the imported goods to be among those described in Article 14 (3) of this Law, that the exemption be requested by the interested party and that they meet the conditions and requirements to be laid down in regulation. The foregoing shall not apply to imports into the passenger and small consignments arrangements, where the value of the goods accepted does not exceed the limits of the allowances to be regulated.

3. It is exempt from the reimportation of goods carried out by the person who made the temporary export of the same to the foreign country or its dispatch on a temporary basis to the Peninsula, Balearic Islands, Ceuta or Melilla, provided that they are presented in the same state in which came out.

The exemption will also be granted to the reimportation of the offal and remains of domestic shipwrecked vessels abroad, upon documentary justification of the casualty and the ownership of such goods to the shipwrecked vessel.

In the case of goods that are not present in the same state in which they came out for having been the subject of the Peninsula, Balearic Islands, Ceuta, Melilla or abroad of a repair, work, transformation or incorporation of others goods, their reimportation shall be exempt only in the following cases:

1. When the operations indicated are carried out on a free basis by virtue of a contractual or legal obligation to guarantee or as a result of a manufacturing vice.

2. When such operations are carried out on domestic ships or aircraft whose delivery or import is exempt from the Indirect Canarian General Tax pursuant to Articles 12 and 14 of this Law.

4. It is also exempt from the reimportation of goods by whom it temporarily sent them to the Peninsula, the Balearic Islands, Ceuta or Melilla or temporarily exported them to a State of the European Economic Community, where those goods have been subject to in these territories of a work taxed by the same or similar tribute to the Indirect General Tax Canarian, without right to deduction or refund.

5. Imports under diplomatic or consular arrangements in accordance with the applicable legislation.

6. Imports effected by international organizations recognized by Spain and those made by its members with diplomatic status, with the limits and conditions laid down in the International Conventions for which such Bodies or agreements on the premises of such bodies.

7. Goods imported under international conventions in force in Spain in the field of cultural, scientific or technical cooperation.

8. Commercial imports of goods the overall value of which does not exceed the value of 14 ECUs.

The following products are excluded from this exemption:

a) Those containing alcohol.

b) Perfumes and colony waters.

c) The raw and manufactured tobacco.

d) Goods that are the subject of a correspondence sale.

Article 77. Special import arrangements.

The imports of goods, in the Canary Islands, which are made under special transit, temporary importation, deposit, inward processing, and low processing are exempt from this arbitration. customs control, in the form and with the requirements to be laid down.

CHAPTER III

Devengo

Article 78. Accrual.

The Arbitrio will become due:

1. In the production or production of goods at the time of their poetry at the disposal of the acquirers.

2. º On imports, at the time of admission of the declaration for import dispatch, prior to compliance with the conditions laid down in the applicable legislation.

CHAPTER IV

Passive Subject

Article 79. Taxable person.

1. The natural or legal persons, as well as the entities referred to in Article 33 of the General Tax Law, who import, produce or produce the tangible movable property are the taxable persons of this Arbitrio.

2. For the purposes of the preceding number, they are considered to be importers, provided that, in each case, the requirements laid down in the legislation applicable to them are met:

1. The recipients of the imported goods are acquirers, transferee or owners of the goods, or consignees acting in their own name on the importation of such goods.

2. º The travellers, for the goods that they drive when entering the territory of the Canary Islands.

3. The owners of the goods in the cases not referred to in the previous paragraphs 1 and 2.

4. In default of the above, the natural or legal persons who hold the possession of the goods introduced.

Article 80. Responsible.

The subjects and entities referred to in Article 21 (2) of this Law shall be jointly and severally liable.

Article 81. Impact of the Arbitrio.

1. The taxable persons referred to in Article 79 above, with the exception of importers, shall have to bear in full the amount of the fees payable on the acquirers of the goods covered by the Arbitrio, to support it provided that the impact is in accordance with the provisions of this Law and its regulatory standards, whatever the stipulations existing between them.

2. The impact of the Arbitrio must be on the invoice or equivalent document.

3. Those who bear a quota in accordance with paragraph 2 above shall be entitled to require the issue of an invoice or equivalent document.

4. The rectification of the contributions of the Arbitrio passed on may be effected in the cases and in the form that is determined to be regulated.

Any corrections which mean an increase in quotas may not be effected after one year after the issue of the invoice or equivalent document, where the addressees are taxable persons of the Arbitration, or after delivery of such documents in other cases.

CHAPTER V

Tax Base

Article 82. Rateable value in domestic transactions.

1. The tax base of the Arbitrio on the production or manufacture of movable property is constituted by the total amount of the consideration received on the occasion of the transfer of such goods.

2. In particular, the following concepts are included in the consideration:

(a) Fees for commissions, packaging, packaging, shipping, transportation, insurance, advance benefit premiums, interest in deferred payments and any other credit in favor of the person making the delivery of the goods.

b) Subsidies linked directly to the price.

c) The taxes and levies of any class that fall on the taxed transactions, except for the Arbitrio itself.

(d) Retentions under the right by the obligation to deliver in the case of resolution of the operations.

3. Where, by a firm, judicial or administrative decision, or in accordance with the right or the trade practice, the agreed consideration is not fully or partially in effect, the tax base shall be amended to the corresponding amount.

Article 83. Tax base on imports.

In imports, the tax base will be the result of adding to the "Customs Value" the following concepts as they are not included in the same:

1. No charges or taxes that may be payable on the occasion of the importation, with the exception of the Arbitrio itself, of the Indirect General Tax and of the Special Taxes.

2. The ancillary and complementary expenses, such as commissions, packages, ports, transports and insurance, that occur to the first place of destination or to break the load.

Article 84. Determination of the tax base.

1. In general, the taxable amount shall be determined on a direct estimate basis, without any exceptions other than those laid down in this Law and in the rules governing the indirect estimation of taxable bases.

2. The application of objective estimation schemes for the determination of the tax base may be agreed in the economic sectors or activities and subject to the limitations specified.

However, such objective estimation schemes shall in no case be applicable to imports or domestic transactions where the amount of the tax base in the preceding year exceeds 100 million. pesetas.

CHAPTER VI

Tax quota

Article 85. Type of lien.

1. The type of charge is constituted by the percentage that is fixed for each class of good body furniture in the Tariffs of the Arbitrio, and it will be the same for its import or production.

The import or production of the non-specified body furniture in the Tariffs will be taxed at the rate of 2 per 100.

2. The rates of charge shall be between 0,1 and 5 per 100. However, the maximum limit for the levy rates applicable to cigars, cigarillos and cigarettes containing tobacco shall be 15 per 100.

3. The rate of charge applicable to each transaction shall be that in force at the time of the accrual.

4. The fees of the Arbitrio will be established in accordance with the structure of the Combined Tariff and Statistics Nomenclature, which is accommodated in the rest of the national territory.

5. According to the provisions of article 12 of the General Tax Law, the tax rates established in the Arbitrio Rates approved as Annexes to this Law may be increased by the Government up to a limit of 15 per 100 or decreased to a limit of 30 per 100 of its initial amount.

This modification will be made, if necessary, on a proposal from the Autonomous Community of the Canary Islands, which will listen previously to the Island Cabildos.

Article 86. Tax quota.

The fee for this Arbitrio is the result of applying to the tax base the type of tax that corresponds.

TITLE II

Deductions and Returns

Article 87. Deductions and Returns

1. Taxable persons may deduct from the fees of the Arbitrio accrued as a result of the transactions they carry out, those of the same tax which they have incurred in the acquisitions or imports of movable tangible property, to the extent that such goods are used in productive activities subject to and not exempt from the Arbitrio, without prejudice to the number 2 of this Article.

2. Those who carry out final shipments or exports to the rest of the national territory or abroad respectively shall be entitled to the refund of the quotas supported by the goods actually exported or referred to the rest of the territory national, in the form that it is regulated.

3. Taxable persons who have not been able to make the deductions provided for in paragraph 3 of this Article for exceeding the amount of the contributions due shall be entitled to request the balance to be repaid in their favour, existing at 31 December each year, in the form that it is regulated.

TITLE III

Liabilities of taxable persons

Article 88. Obligations of taxable persons.

1. The taxable persons shall be obliged to:

(a) Submit statements regarding the commencement, modification and cessation of activities that determine the subjection to the Arbitrio, all within the time limits and in the manner that is determined to be regulated.

b) Carry out the accounting in the manner that is regulated, without prejudice to the provisions of the Code of Commerce, which shall permit the precise determination of the amount of the transactions subject, as well as their separation according to the type of charge applicable.

c) Exorder and deliver invoices or equivalent documents from the operations in which they are involved, adapted to the general rules that regulate the duty to issue and deliver an invoice which is the responsibility of employers and professionals.

d) Submit statements and settlements for each settlement period in the form and time limits that are regulated.

e) To submit information regarding economic operations to third parties at the request of the Autonomous Community of the Canary Islands.

2. Non-employer taxable persons shall only be required to present the corresponding statements and settlements in the form and time limits which they regulate.

TITLE IV

Tax Management

Article 89. Settlement.

1. The Arbitrio shall be settled in the form and time limits which it shall determine. Provisional liquidations of trade made by the Tax Administration may be established.

2. The Autonomous Community of the Canary Islands may require the Arbitrio to be autoliquid.

3. The time limit for the payment of tax debts shall be determined in accordance with the time limit for the receipt of the administration. In the event of the establishment of the self-settlement scheme, the income from the tax liability shall be effected within the time limit specified for the tax liability.

Article 90. Competent administration.

The management, liquidation, collection and inspection of the Arbitrio, as well as the review of the acts dictated in application of the same correspond to the Autonomous Community of the Canary Islands.

The Autonomous Community of Cananas ' powers with regard to the Arbitration for Production and Import may be developed anywhere in the Archipelago, including at ports and airports, without prejudice to the which correspond to the Administrations of the Free Ports and other organs of the State Administration is matter of control of the foreign trade, repression of the contraband and other that grants them the legislation in force.

Article 91. Rates.

1. The fees of the Arbitrio, including the rates referred to in Article 85, shall be as set out in the Annexes to this Law.

2. The fees of the Arbitrio shall contain an Annex specifying the movable tangible property, the production and import of which are exempt from that, in particular the first-need food items exempt in accordance with the provisions of the set out in Article 74 (c) and (h) of Article 76, respectively.

3. The adjustments to the tariffs which would be necessary as a result of the modification of the structure of the tariff nomenclature, without any change in the rate of charge, shall be adopted and published by the Government of the Canary Islands after obtaining the opinion or Initiative of the Ministry of Economy and Finance.

TITLE V

Violations and penalties

Article 92. Infringements and penalties.

The regime of violations and penalties applicable to this Arbitrio will be regulated in the General Tax Law and the provisions that complement and develop it.

BOOK III

Investment Tax Incentives

Article 93. Transitional arrangements for the Investment Forecast Fund.

1. Companies and other legal entities subject to the Company Tax, under the scheme of the Investment Forecast Fund under the special rules of Article 21 of Law 30/1972 of 22 July on economic conditions In the case of the Canary Islands, they will be entitled to the reduction in the tax base of that tax corresponding to the last financial year closed before 1 January 1992, and to the consolidation of the practice in respect of the previous exercises and which are necessarily materialised in current accounts of cash in the Banco de España or in the accounts of the deposit of debt securities of the State and authorised securities, provided that such allocations are actually invested in the assets referred to in point 2 of the present Article.

The transitional regime referred to in the preceding paragraph shall also apply to taxable persons for the Income Tax of Physical Persons carrying out business activities, with the same requirements.

2. The effective investment of the envelopes may be carried out without distinction in the following assets:

(a) In the following tangible fixed asset items, necessary for the development of the business activities of the taxable person, whatever the nature of the taxable person:

Land, buildings and housing for workers that are necessary for the development of the activity.

Forests and non-forest tree plantations.

Irrigation or establishment works or expansion of agricultural products processing enterprises.

Mines and quarries.

Buildings, facilities and furniture.

Machinery and tools.

Ships.

Transport items or equipment.

Agricultural, livestock and fishing constructions, warehouses, silos and cold storage rooms.

Laboratories and research teams.

Teams for information and office processes.

(b) securities or annotations in the account of public debt of the Autonomous Community of the Canary Islands, the Canary Islands ' or their Public Enterprises or Autonomous Bodies, provided that they are intended for financing infrastructure investments in the Canary Islands. To this end, the Government of the Nation will approve the amount and the destination of the emissions, on the basis of the proposals that the Autonomous Community of the Canary Islands will make in this sense, prior to the report of the Public Investment Committee.

(c) In the subscription of shares or shares in the capital of companies domiciled in the Canary Islands which carry out activities within the territory covered by the sectors to be determined on a proposal from the Autonomous Community of the Canary Islands.

(d) In land for a maximum period of three years for the construction of official protection homes.

e) Up to 20 per 100 of its amount in current acquisitions of goods or in the satisfaction of financial expenses arising from the financing of the purchase of fixed assets.

3. The investment of the allocations shall be made during the five years following 1 January 1992, but the investment of each year shall be at least one fifth of the amount of the appropriations.

4. The taxable persons shall retain in their possession the securities referred to in points (b) and (c) of the preceding number 2 for at least the five consecutive years.

This period shall not be deemed to be interrupted if, before the end of the same period, the redemption, exchange, conversion or transfer of the securities is completed, provided that the amount received is allocated, within a maximum period of six months, to the acquisition of assets referred to in points (a), (b) and (c) of paragraph 2 of this Article. In the event of the acquisition of new securities, they must remain in the hands of the taxable person for the time necessary to complete the five years.

5. As from the first economic year in which the scheme referred to in number one of this Article does not apply, the amortisation of the goods concerned to the Investment and Investment Forecasting Fund shall not apply to the those other whose acquisition occurs as a result of the provisions of number two, shall be released from the reinvestment obligation.

6. Reinvestment of the proceeds of the sale, as provided for in Article 46 of the consolidated company tax approved by Decree 3359/1976 of 23 December 1976, shall not be required without prejudice to the calculation of the capital gains or losses which may occur in such disposal.

7. Companies and other legal entities approved by the Administration of an advance investment plan may continue to provide the Investment Forecast Fund until the implementation of the plan, which is then applied in respect of investments made, as provided for in the previous numbers 5 and 6.

8. Once the investments referred to in number 2 have been verified or the time limit for verification has elapsed, the balance of the Investment Forecast Fund account may be allocated:

a) The removal of negative accounting highlights. The disposal shall be taken into account for financial consolidation carried out from own funds, for the purpose of the loss compensation provided for in Article 18 of Law 61/1978 of 27 December of the Company Tax.

b) To the expansion of social capital.

(c) To the legal reserve established in Article 214 of the Royal Decree of Law 1564/1989 of 22 December 1989 approving the recast text of the Law on Limited Companies.

d) Free provision reserves if the legal reserve is fully provided.

Notwithstanding the foregoing paragraphs, the part of the Investment Forecast Fund shall not be available for the purposes of Article 2 (e) (e) of this Article until 1 January of this year. 1997.

Article 94. Deduction for investments in the Canary Islands.

1. Companies and other legal entities which are subject to corporation tax, with their registered office in the Canary Islands, may benefit from the first financial year closed after 31 December 1991, and in respect of the investments made and which remain in the Archipelago to the deduction scheme provided for in Article 26 of Law 61/1978 of 27 December, in accordance with the following peculiarities:

(a) The applicable rates on investments made shall be more than 80 per 100 for those of the general scheme, with a minimum spread of 20 percentage points.

(b) The deduction for investments shall have as a ceiling the percentage shown below of the liquid quota resulting from the reduction of the full quota in the amount of the double taxation deductions and, where applicable, the subsidies provided for in Article 25 of Law 61/1978 of 27 December of the Company Tax. Such a percentage shall always be more than 80 per 100 for each mode of the deduction for investments to be fixed in the general scheme, with a minimum spread of 30 percentage points.

2. The system of deduction for investments in this Article shall apply to companies and other legal entities which do not have their registered office in the Canary Islands in respect of permanent establishments situated in the Canary Islands and provided that the corresponding investments are made and remain in the Archipelago.

In this case, the maximum deduction limit on the liquid quota referred to in point (b) of the preceding number 1 shall apply regardless of the amount corresponding to the investments under the general scheme.

The same criteria will be applied to investments made in the peninsular territory or the Balearic Islands, through permanent establishments, by the entities domiciled in the Canary Islands.

Likewise, such a system of deduction for investments will apply to natural persons who carry out business or professional activities in the Canary Islands, with the same conditions and restrictions as Tax on the Income Tax of the Physical Persons for the application to the taxable persons of the Tax of the incentives or incentives to the investment established in the Tax on Societies.

3. In addition to the elements giving entitlement to the deduction in the general scheme, the investments may also be made in fixed assets used, which would not have been previously deducted by investments in the rest of the territory. national, where they represent a clear technological improvement for the company, in the form and with the requirements to be determined in regulation.

4. In so far as it does not object to the above figures in this Article, the general rules of the deduction for investments governed by Law 61/1978 of 27 December of the Tax on Societies and additional provisions.

BOOK IV

Regime of public investments in the Canary Islands

Article 95. Compensation of the island fact.

In accordance with the provisions of Article 138.1 of the Spanish Constitution and Article 54 of the Statute of Autonomy of the Canary Islands, they shall be considered to be of general interest for the purposes of the inclusion of the corresponding appropriations in the The General Budget of the State, infrastructure works and telecommunications facilities enabling or facilitating the integration of the territory of the Archipelago with the rest of the national territory or interconnecting the main urban centres of the Canary Islands or the different islands.

The implementation of the tax system set out in this Law will not imply any impairment of the additional allocations provided for in Article 54 of the Statute of the Canary Islands.

Article 96. Distribution of the Public Investment Program.

In each financial year, the Public Investment Program that will be executed in the Canary Islands will be distributed between the State and the Autonomous Community in such a way that the state investments are not inferior to the average that corresponds to the Joint venture between the Autonomous Communities, excluding investments which compensate for the island fact.

ADDITIONAL PROVISIONS

First.

The amount of the collection of the Arbitrio on the Production and Import in the Canary Islands will be delivered by the Autonomous Community to the Island Cabildos for distribution among the local Canary Islands, according to the criteria and provisions applied in respect of the amount of the collection of the General Fee of the Insured Arbitrator to the Entry of Goods in the Canary Islands or as a result of which the territorial laws that regulate it.

Second.

The Special Fee for the Entry of Goods will continue to apply, as provided for in Article 6 of Protocol 2 to the Treaty of Accession. The Government of the Nation, taking into account the circumstances that may be present in the Canary economy, will propose to the European Commission the extension beyond January 1, 1993 of the validity of the Special Fee for a period of time limited as well as their extension to sensitive products, as provided for in Article 6.3 of the said Protocol No 2 to the Treaty of Accession.

Third.

The percentage of the liquid collection of the Indirect Canarian General Tax corresponding to the Island Cabildos as provided for in Article 60 of this Law will be distributed among these in accordance with the provisions of the Law 42/1985 of 19 December 1985 on criteria for the distribution of income from taxes regulated in Chapter II of Title III of Law 30/1972 of 22 July on Economic and Fiscal Regime.

Fourth.

For all that is not provided for in this Law, and especially in respect of customs matters, the provisions in force in the rest of the national territory will be available as soon as they are opposed to the provisions of the law. same.

Fifth.

The exemption referred to in Article 48.1 (a) of the Recast Text of the Tax on Proprietary Transmissions and Documented Legal Acts shall apply on the same terms and conditions, when the transactions to which it relates are exempt from the Indirect Canarian General Tax.

Sixth.

The tax benefits established prior to the validity of this Law will not produce effects in relation to the Indirect General Tax Canarian and the Arbitrio on the Production and Import of Goods.

Seventh.

The Tax Administration of the State and the Autonomous Community of the Canary Islands may agree to the system of collaboration that proceeds in order to the levy of the indirect taxes referred to in this Law.

Eighth.

One. As of the entry into force of this Law, the rates of the Indirect General Tax Canarian are fixed as follows:

1. The zero rate shall apply to the supply of goods and services referred to in Article 27, 1, (a)

1. The general type will be 2 per 100.

2. The general type will be 4 per 100.

3. The increased rates are set at 12 per 100 and 24 per 100.

Two. The General Budget Laws of the State may amend the rates of charge referred to in the previous paragraph within the limits provided for in Article 27 of this Law.

Such modifications will be made, if necessary, at the initiative of the Autonomous Community of the Canary Islands, which will listen previously to the Island Cabildos.

Ninth.

The General Budget Laws of the State may modify the quantitative limit set out in Article 49, 1 of this Law and, where appropriate, the system of taxation of self-consumption in the Indirect General Tax. Canary.

The amendments referred to in the previous paragraph shall be made at the initiative of the Autonomous Community of the Canary Islands.

10th.

One. The Government, after reporting by the Autonomous Community of the Canary Islands and without prejudice to the provisions of the following paragraph, shall make the necessary arrangements for the development and application of this Law.

Two. The Autonomous Community of the Canary Islands, in accordance with Article 32 of the Statute of Autonomy of the Autonomous Community of the Canary Islands, shall regulate matters relating to the management, liquidation, collection and inspection of the Indirect General Tax and the Arbitration for Production and Import in the Canary Islands, as well as those relating to the revision of the acts dictated by them.

Three. The competent authorities of the Autonomous Community of the Canary Islands are assigned the competence to answer the tax consultations relating to the Indirect General Tax Canarian and the Arbitrio on Production and Import in the Canary Islands. In the case of the Court of Justice of the European Parliament, the Court of Justice held that the Court of Justice had to be held responsible for the application of Article 107 of the General Tax Law. prior report of the Ministry of Economy and Finance.

11th.

The Ministerial Orders referred to in Article 18 of the General Tax Law, concerning the interpretation or clarification of the provisions concerning the Indirect General Tax, will be issued by the Ministry of Finance. Economic and Financial Affairs, at the request of or prior to the report of the Autonomous Community of the Canary Islands.

12th.

1. For the purposes of this Law, it shall be deemed to be:

First. International maritime navigation: To be carried out by ships through sea waters in the following cases:

a) When starting from Cananas or from a foreign country, conclude in another country or vice versa.

(b) When vessels are affected by shipping and are engaged in the exercise of an industrial, commercial or fishing activity, other than transport, provided that the duration of the non-stop navigation exceeds Forty-eight hours.

Second. International air navigation: The one made from the Canary Islands or from a foreign country to another country or vice versa.

Third. Avittualling products: The provisions of on board, fuels, fuels, lubricants and other oils for technical use and accessories on board.

It will be understood by.

(a) On-board Provisions: Products intended exclusively for the consumption of crew and passengers.

(b) Fuels, fuels, lubricants and other oils for technical use: The products intended for the feeding of the propulsion organs or the operation of the other on-board machinery and apparatus.

(c) Products on board: Consumer products for domestic use, those intended for the feeding of animals transported and consumables used for the conservation, treatment and preparation on board goods transported.

Fourth. Normal fuel and fuel tanks: The communications directly with the propulsion bodies, machinery and equipment on board.

Fifth. Peninsula: The Spanish peninsular territory.

2. It shall be deemed to be equivalent to international, sea or air navigation, carried out by vessels or aircraft departing from the Canary Islands in the Peninsula, Balearic Islands, Ceuta and Melilla or vice versa.

13th.

Goods subject to the Special Tax on Alcohol and Beer in the Canary Islands may not be taxed higher than the current rate in the rest of the national territory.

TRANSIENT PROVISIONS

First.

In the financial years 1992 and 1993, the rate applicable to the deduction for investments as provided for in Article 94 (a) of this Law may not be less than 30 per 100.

Second.

They are not subject to Indirect General Tax Canarian:

1. The operations subject to the General Tax on the Trafficking of Companies and the Insured Arbitration on the Luxury whose accrual would have occurred prior to the entry into force of the Indirect General Tax Canarian.

2. The sales of official protective housing and documented in public writing before 1 January 1992 and those whose respective contracts would have been submitted for the mandatory administrative visa with prior to that date before the competent authority in the field of housing.

The non-subjection set forth in the preceding paragraph shall not preclude the seller's right to deduct from the Indirect Canarian General Tax dues that, if any, are passed on to him as a result of transactions related to the construction of the aforementioned dwellings.

Third.

To the entry into force of the Indirect General Tax Canarian, and provided that the goods to which they are reiterated have been made available to their acquirers, the totality of the quotas of the General Tax will be considered. on the Traffic of Companies that tax the following transactions:

1. The lease-sale contracts.

2. Financial leasing contracts and other leases with an option to purchase when the lessee would have committed to exercising that option prior to the entry into force of the Indirect General Tax Canary.

3. Sales of homes with deferred payment of the price.

However, taxable persons may make the income of the tax shares, in the form that is determined to be regulated, at the end of the calendar quarter in which the post-entry payments are payable. Direct Indirect Canarian Tax.

Fourth.

Deductions or, where applicable, returns arising from the application of the provisions of Title VIII of Book I of this Law, shall be considered as income or income for the purposes of the Income Tax of Persons. Physical or Corporate Tax.

The temporary imputation of such income or income shall be made for the period in which they are made effective.

Fifth.

The determination of the minimum fees to be entered by the taxable persons who opt for the simplified regime governed by Title III, Chapter 1 of Book I of this Law, will be calculated in such a way as to understand the deductions transitional arrangements provided for in Title VIII of the said Book. In no case shall the indicated minimum quotas be able to experience minorations as a result of the application of the above deductions.

Sixth.

During the first ten years of application of the Arbitrio on Production and Import in the Canary Islands it will be exempt from the same production or manufacture of personal property in the Canary Islands.

Seventh.

The provisions of the Derogation Provision are without prejudice to the right to demand tax debts due before 1 January 1992, which will continue to be subject to the legislation which is repealed by the present Law.

REPEAL PROVISION

1. The entry into force of this Law shall be repealed as many provisions, laws or regulations, shall be contrary to the provisions of this Law, in particular the following:

(a) Article 24 of Law 30/1972, of 22 July, on the Economic and Fiscal Regime of the Canary Islands, for which the Arbitrio Insular on the Luxury was created; the Ordinance for the Exaction of the Insular Arbitrio on the Luxury, approved by Resolution of the Ministry of Finance of 27 March 1981 and other supplementary provisions.

(b) Article 22 of Law 30/1972, of 22 July, and the recast of the General Ordinance for the Exaction of the Insular Arbitration for the Entry of Goods in the Canary Islands, approved by a Resolution of the Ministry of Hacienda of 30 November 1972, both provisions as regards the General Tariff of the Arbitrio Insular to the Entry of Goods, as well as the other supplementary provisions.

(c) Article 21 of Law 30/1972 of 22 July, for which the special scheme of the forecast for investments in the Canary Islands was regulated.

(d) Royal Decree 2600/1979 of 19 October 1979 on the harmonisation of Article 26 of Law 61/1978 of 27 December 1978 on the tax on companies, relating to the deduction for investments, and Article 21 of Law 30/1972, of 22 July.

2. The provisions of the preceding paragraph are without prejudice to the provisions of the Seventh Transitional Provision.

FINAL DISPOSITION

1. The Government of the Nation is hereby authorized to make any provisions necessary for the development and application of this Law without prejudice to the provisions of Article 91 thereof.

2. This Law shall enter into force on 1 January 1992.

Until the indicated date, the General Tax on the Traffic of Enterprises and the Insular Umpire on the Luxury will continue to be demanded in the Canary Islands, which will be definitively abolished in the area of the Islands. The Canary Islands, from then on, as well as its accompanying provisions.

3. By way of derogation from the previous number, the Arbitrio on Production and Import in the Canary Islands will begin to be applied on 1 July 1991, from which date the General Tariff of the Arbitrio Insular will be definitively abolished. Merchandise Entry.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, June 7, 1991.

JOHN CARLOS R.

The President of the Government,

FELIPE GONZÁLEZ MARQUEZ

The annexes to this Law are published in supplement