The aid takes the form of tax advantages. More specifically, the aid scheme is structured in the following three sub-measures:
(a) ‘Incentives for investment’, which takes the form of a series of tax measures designed to encourage private investment by means of the indirect taxation exemption mechanisms
(b) ‘Reserves for investments in the Canary Islands’ (“RIC”), in the form of a reduction in the tax base of the non-distributed profits allocated to the undertaking’s reserves (for the corporate tax) or of the net operating income allocated to the investment reserve (for the personal income tax).
(c) ‘Deductions for investments in the Canary Islands’ (“DIC”), in the form of a reduction of the corporate tax or the personal income tax.
The objective of the scheme is to establish a system that encourages economic activity and economic growth in the Canary Islands through the creation of jobs, the enhancement of its various island areas, the attraction and the increasing of private investment.
Beneficiaries under the scheme, in relation to all three sub-measures, can be enterprises of all sizes and active in all sectors in the Canary Islands. The total estimated number of beneficiaries, for all three sub-measures, is more than 2000.
