This tax incentive is applicable for companies and other legal entities subject to Corporation Tax that have a permanent location in the Canary Islands as well as for individuals who carry out economic activities and determine their net income by direct estimation.

For companies, the RIC is configured as a reduction in the base corporate income tax with a limit of 90% of the undistributed profit, meaning in most cases that the maximum limit of the RIC is 90% of the net profit minus the distribution made to the legal reserve and dividends (which are the most common income distributions).

In exchange for obtaining these important tax savings, the company acquires an investment commitment of the amount endowed in a series of assets, either directly or indirectly. For the acquisition of these assets, the taxpayer (legal entity) has an effective term of up to five years (the year of obtaining the income, the year of the accounting allocation of the reserve and the following three years) committing to the maintenance of the The same in operation for a period of five years unless their useful life is shorter. In the case of taxpayers (natural person), the materialization period is reduced to 4 years (the year of obtaining the benefit and the following three years).

Therefore, this tax incentive is very attractive for all those companies that want to expand and develop or are going to develop, at least, part of their activity in the Canary Islands.