THE DECREE FOUR HUNDRED AND EIGHTY-FOUR THOUSAND NINE HUNDRED AND SIXTY-NINE, OF TWENTY-SEVEN MARCH ("OFFICIAL STATE BULLETIN" OF THIRTY-ONE OF MARCH), DESCRIBED AS A ZONE OF PREFERENTIAL INDUSTRIAL LOCATION THE TERRITORY OF THE THE CANARY ISLANDS DETERMINING THE LOCATION AND THE CONDITIONS WHICH UNDERTAKINGS SHOULD COMPLY WITH IN ORDER TO BENEFIT FROM THE BENEFITS OF THE AREA. LATER, BY DECREE ONE THOUSAND FIVE HUNDRED AND ONE THOUSAND NINE HUNDRED AND SEVENTY-TWO, OF EIGHT OF JUNE ("OFFICIAL STATE BULLETIN" OF THE TWENTIETH OF JUNE) WAS MODIFIED PARTIALLY THE PREVIOUS DECREE EXTENDING THE ZONES OF POSSIBLE IMPLANTATION OF INDUSTRIES AND EXTENDING THE ACTIVITIES ELIGIBLE FOR BENEFITS. FINALLY, THE LAW TREINT/A THOUSAND NINE HUNDRED AND SEVENTY-TWO, OF TWENTY-ONE OF JULY, ON THE FISCAL ECONOMIC REGIME OF THE CANARY ISLANDS ("OFFICIAL BULLETIN OF THE STATE" OF JULY 24) ESTABLISHES IN ITS ARTICLE SEVENTH THAT THEY WILL ENJOY THE BENEFITS LISTED IN ARTICLE 4 OF LAW ONE HUNDRED AND FIFTY-TWO HUNDRED AND SIXTY-THREE, OF TWO DECEMBER, ON INDUSTRIES OF PREFERENTIAL INTEREST, THE NEW INDUSTRIES TO BE INSTALLED IN THE ARCHIPELAGO AND THE ENLARGEMENTS OF THOSE ALREADY THEY EXIST, WHICH CORRESPOND TO THE SECTORS DECLARED BY THE GOVERNMENT.

FOR ITS PART, THE FINAL PROVISION OF THE SECOND OF THE DECREE ONE THOUSAND FIVE HUNDRED AND FORTY-ONE-THOUSAND NINE HUNDRED AND SEVENTY-TWO, OF 15 JUNE (THE OFFICIAL BULLETIN OF THE STATE OF 16 JUNE) APPROVING THE RECAST TEXT OF THE THE LAW OF THE ECONOMIC AND SOCIAL DEVELOPMENT PLAN ESTABLISHES THAT THE DURATION OF THE SCHEME APPLICABLE TO AREAS OF PREFERENTIAL INDUSTRIAL LOCATION IN FORCE IN THIRTY-ONE DECEMBER OF A THOUSAND NINE HUNDRED AND SEVENTY-ONE WILL BE EXTENDED TO A PERIOD OF TEN YEARS, COUNTED FROM THE COMMISSION OF EACH OF THESE SCHEMES, WHICH IMPLIES THAT THE VALIDITY OF THE PREFERENTIAL INDUSTRIAL LOCATION FOR THE CANARY ISLANDS.

NOW, AFTER THE TEN YEARS PROVIDED FOR IN THE III DEVELOPMENT PLAN, IT IS A FACT THAT IN THE CANARY ARCHIPELAGO, THE SOCIOECONOMIC CONDITIONS PERSIST, WHICH IN THEIR DAY MOTIVATED THEIR QUALIFICATION AS A PRIORITY ZONE. INDUSTRIAL LOCATION AND THE RESULTS OBTAINED HAVE NOT CORRESPONDED TO THE EXPECTATIONS OF INDUSTRIALIZATION THAT COULD BE EXPECTED FROM THE INCENTIVE REGIME, WHICH CAN BE ATTRIBUTED IN GOOD PART TO THE SHORTAGE OF THE AVAILABLE INDUSTRIAL SOIL. PRACTICALLY SOLVED THIS PROBLEM WITH THE ORGANIZATION OF THE POLYGONS OF GUIMAR AND ARINAGA AND THE PROJECT OF GRANADILLA, IT CAN BE EXPECTED AN IMPORTANT TAKEOFF OF THE INDUSTRIALIZATION OF THE ISLANDS AND THE CONCURRENCY OF INITIATIVES OF INTEREST FOR THE FUTURE OF THE ARCHIPELAGO.

ALL THIS JUSTIFIES THE EXTENSION OF THE CONSUBSTANTIAL BENEFITS REGIME TO THE AREAS OF PREFERENTIAL INDUSTRIAL LOCATION OF THE CANARY ISLANDS, AS WELL AS TO MAINTAIN THE SPECIAL CONDITIONS OF BENEFITS THAT THE ORDER DETERMINES. MINISTERIAL OF THE VENTIONS OF DECEMBER OF A THOUSAND NINE HUNDRED STENTS AND SIX ("OFFICIAL STATE BULLETIN" OF THE THREE OF FEBRUARY OF A THOUSAND NINE HUNDRED AND SEVENTY-SEVEN), FOR A SUFFICIENT TIME TO HAVE SATISFACTORY RESULTS OF THE ACTIONS UNDERTAKEN.

IN SEQUENCE, ACCORDING TO LAW ONE HUNDRED AND FIFTY-TWO-THOUSAND NINE HUNDRED AND SIXTY-THREE, OF TWO DECEMBER, ON INDUSTRIES OF PREFERENTIAL INTEREST AND WITH DECREE TWO THOUSAND EIGHT HUNDRED AND FIFTY-ONE THOUSAND NINE HUNDRED AND SEVENTY FOUR OF EIGHT SEPTEMBER WHICH DEVELOPED THE PREVIOUS LAW, WITH THE REPORT OF THE MINISTRIES OF FINANCE, LABOUR AND TRADE AND TOURISM, ON A PROPOSAL FROM THE MINISTRY OF INDUSTRY AND ENERGY, AND AFTER DELIBERATION BY THE COUNCIL OF MINISTERS AT ITS MEETING FROM THE TWENTY-FIRST DAY OF SEPTEMBER, A THOUSAND NINE HUNDRED AND SEVENTY-NINE, I HAVE:

ARTICLE FIRST.-IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 7 OF THE LAW TREINT/A THOUSAND NINE HUNDRED AND SEVENTY-TWO, OF TWENTY-TWO OF JULY, ON THE ECONOMIC-FISCAL REGIME OF THE CANARY ISLANDS, THE BENEFITS MAY BE GRANTED ESTABLISHED IN LAW ONE HUNDRED AND FIFTY-TWO HUNDRED AND SIXTY-THREE OF TWO DECEMBER ON INDUSTRIES OF PREFERENTIAL INTEREST TO COMPANIES, WHICH IN COMPLIANCE WITH THE REQUIREMENTS LAID DOWN IN THIS ROYAL DECREE, ARE ESTABLISHED IN THE AREA OF PREFERENTIAL INDUSTRIAL LOCATION IN THE CANARY ISLANDS UNTIL THIRTY-ONE DECEMBER FROM A THOUSAND NINE HUNDRED AND EIGHTY-ONE.

THIS DEADLINE MAY BE EXTENDED BY THE GOVERNMENT ON A PROPOSAL FROM THE MINISTER OF INDUSTRY AND ENERGY, IF THE ECONOMIC CIRCUMSTANCES SO ADVISE.

ARTICLE SECOND. THE GRANTING OF BENEFITS, THE POSSIBILITY OF WHICH IS PROVIDED FOR IN THE PREVIOUS ARTICLE, PURSUES THE FOLLOWING OBJECTIVES:

ONE. TO ACHIEVE A BETTER BALANCE BETWEEN THE ECONOMIC ACTIVITIES OF THE CANARY TERRITORY WITH THE GREATEST RELATIVE WEIGHT OF THE INDUSTRIAL SECTOR.

TWO. STIMULATE THE INSTALLATION OF TECHNICAL AND ECONOMICALLY COMPETITIVE INDUSTRIES, AS WELL AS THE EXTENSION AND MODERNISATION OF EXISTING ONES.

THREE. TO STIMULATE THE USE OF RESOURCES AND THE EMPLOYMENT OF LABOR IN THE REGION.

ARTICLE THIRD.-THE ACTIVITIES THAT TO BENEFIT FROM THE BENEFITS ESTABLISHED IN THIS ROYAL DECREE WILL HAVE TO DEVELOP THE COMPANIES THAT PERFORM INDUSTRIAL INSTALLATIONS IN THE AREA OF THE TERRITORY OF THE CANARY ISLANDS WILL BE ALL THOSE THAT FAVOUR THE ACHIEVEMENT OF THE OBJECTIVES SET OUT IN THE PREVIOUS ARTICLE AND ASSUME THE CREATION OF NEW INDUSTRIES OR THE EXTENSION OR IMPROVEMENT OF EXISTING ONES OR THE TRANSFER, INVOLVING THE EXTENSION OR IMPROVEMENT OF SUCH AN AREA OF INDUSTRIES ALREADY EXISTING IN OTHER LOCATIONS.

ARTICLE FOURTH.-THE TECHNICAL, ECONOMIC AND SOCIAL CONDITIONS TO BE MET BY THE COMPANIES THAT PROJECT INDUSTRIAL INSTALLATIONS WITH THE BENEFITS OF THIS ROYAL DECREE WILL BE AS FOLLOWS:

ONE. TECHNIQUES: THOSE THAT ARE ESTABLISHED AT ANY TIME BY THE CURRENT LEGISLATION ON THE INSTALLATION, EXPANSION AND TRANSFER OF INDUSTRIES.

TWO. ECONOMIC:

TWO. ONE. IN THE CASE THAT PROMOTERS ARE LEGAL PERSONS, ALL THE REPRESENTATIVE ACTIONS OF THE SOCIAL CAPITAL SHALL ENJOY EQUAL POLITICAL AND ECONOMIC RIGHTS.

TWO. TWO.-UNDERTAKINGS MUST HAVE SUFFICIENT CAPITAL TO COVER, AT LEAST THE THIRD PART OF THE ACTUAL INVESTMENT NECESSARY IF THEY TAKE THE FORM OF A COMMERCIAL COMPANY AND 20% OF THAT REAL INVESTMENT WHEN THEY ARE COOPERATIVE PRODUCERS.

THREE. SOCIAL: THE PROMOTERS WILL HAVE TO DRAFT AND, ONCE APPROVED, IMPLEMENT A SOCIAL PROMOTION PROGRAM FOR THEIR WORKERS.

ARTICLE 5.-THE BENEFITS THAT MAY BE GRANTED TO COMPANIES THAT ARE INSTALLED IN THE TERRITORY OF THE CANARY ISLANDS SHALL BE THE FOLLOWING:

ONE. THE FOLLOWING ARE INDICATED, AMONG THE TAX BENEFITS MENTIONED IN LAW ONE HUNDRED AND FIFTY-TWO THOUSAND NONEIGHBORHOODS SIXTY-THREE, OF TWO DECEMBER, IN THE WORDING GIVEN TO THEM BY THE DECREE TWO THOUSAND EIGHT HUNDRED AND EIGHTY CINCO/THOUSAND NINE HUNDRED AND SIXTY-FOUR OF TWENTY-SEVEN JULY, TAKING INTO ACCOUNT THE MODIFICATIONS LAID DOWN IN LAWS FORTY-FOUR AND SIXTY-ONE-THOUSAND NINE HUNDRED AND SEVENTY-EIGHT, OF TAXES ON THE INCOME OF NATURAL PERSONS AND COMPANIES, OR THOSE RESULTING FROM THE APPLICABLE LEGISLATION IN EACH CASE.

ONE. ONE. REDUCTION OF UP TO NINETY FIVE PERCENT IN THE GENERAL TAX ON THE TRANSFER OF PROPERTY AND LEGAL ACTS DOCUMENTED IN THE TERMS OF ARTICLE SIXTY-SIX OF THE RECAST OF THE TAX, APPROVED BY DECREE A THOUSAND NINETEEN-HUNDRED AND SIXTY-SEVEN, OF FIVE OF APRIL.

ONE. TWO. -REDUCTION OF UP TO NINETY PERCENT OF THE TAX LICENSE FEE FOR INDUSTRIAL TAX DURING THE INSTALLATION PERIOD.

ONE. THREE. REDUCTION OF UP TO NINETY-FIVE PERCENT OF THE ARBITRATIONS OR RATES OF LOCAL CORPORATIONS THAT TAX THE ESTABLISHMENT OR EXPANSION OF INDUSTRIAL PLANTS.

TWO. A SUBSIDY FROM THE GENERAL BUDGET OF THE STATE OF UP TO TWENTY PERCENT OF INVESTMENTS IN FIXED ASSETS.

THREE. COMPULSORY EXPROPRIATION OF THE LAND NECESSARY FOR THE INSTALLATION OR INDUSTRIAL EXPANSION AND IMPOSITION OF PASS-THROUGH SERVITUDE FOR ACCESS ROUTES, LINES OF TRANSPORT AND DISTRIBUTION OF ENERGY AND THE CHANNELING OF LIQUIDS OR GASES IN CASES THAT ARE NECESSARY.

FOUR. PREFERENCE IN OBTAINING OFFICIAL CREDIT DEFAULT FROM OTHER SOURCES OF FINANCING.

ARTICLE SIXTH ..-THE BENEFITS REFERRED TO IN THE PREVIOUS ARTICLE WILL BE GRANTED

FOR A PERIOD OF FIVE YEARS, EXTENDABLE WHEN THE ECONOMIC CIRCUMSTANCES RECOMMEND IT FOR ANOTHER PERIOD NOT EXCEEDING THE FIRST.

THIS RULE SHALL NOT AFFECT THE BENEFITS THAT HAVE A SPECIAL TERM OF DURATION OR ARE DETERMINED BY THE PERFORMANCE OR PERFORMANCE OF THE ACT OR CONTRACT THAT IS BASED ON THE ESTABLISHED BENEFITS.

ARTICLE SEVENTH. THE PROCESSING OF APPLICATIONS FOR THE BENEFIT OF THIS ROYAL DECREE, AS WELL AS THE CRITERIA FOR QUALIFYING SUCH APPLICATIONS, SHALL BE IN ACCORDANCE WITH THE ORDER OF THE MINISTRY OF INDUSTRY OF EIGHT MAY NINE HUNDRED AND SEVENTY-SIX ("OFFICIAL STATE BULLETIN" OF TWENTY) AND PROVISIONS THAT COMPLEMENT OR REPLACE IT.

THE RESOLUTION WILL BE ADOPTED BY ORDER OF THE MINISTRY OF INDUSTRY AND ENERGY FOLLOWING THE AGREEMENT OF THE COUNCIL OF MINISTERS, WHEN GRANTS ARE AWARDED FROM THE BUDGETS OF OTHER MINISTERIAL DEPARTMENTS.

FINAL DISPOSITION

THE MINISTRY OF INDUSTRY AND ENERGY IS EMPOWERED TO DICTATE HOW MANY COMPLEMENTARY RULES REQUIRE THE DEVELOPMENT AND IMPLEMENTATION OF THIS ROYAL DECREE.

REPEAL PROVISION

DECREES FOUR HUNDRED AND EIGHTY-FOUR-THOUSAND NINE HUNDRED SESENTAY NINE, OF TWENTY-SEVEN MARCH, AND ONE THOUSAND FIVE HUNDRED SESENT/ONE THOUSAND NINE HUNDRED AND SEVENTY-TWO, OF EIGHT JUNE, ON DECLARATION OF PREFERENTIAL ZONE ARE HEREBY REPEALED. INDUSTRIAL LOCATION OF THE CANARY ISLANDS AND MODIFICATION OF THE PREVIOUS DECREE, RESPECTIVELY.

GIVEN IN MADRID TO TWENTY-ONE IN SEPTEMBER OF A THOUSAND NINE HUNDRED AND SEVENTY-NINE.-JUAN CARLOS R.-THE MINISTER OF INDUSTRY AND ENERGY, CARLOS BUSTELO AND GARCIA DEL REAL.