Information RIC - A bis Z consulting s.l.

	Information RIC
	What is RIC and what it serves for? The RIC is a fiscal incentive, framed inside the Economic and Fiscal Diet of Canaries (REF) regulated by the article 27 of the Law 19/1994. The possibility, which the legislator offers to any businessman who develops his activity on the Canary Islands, are the non-figures of taxes if he invests his profit again in the Canaries. The tax advantage presents itself in form of a reserve with deductible character which reduces the achieved profits and limits the taxable base in the companies tax return and as a deduction in the quote of the personal income tax return. To be able to use this advantage of the RIC it is necessary to develop a business or professional activity on the Canaries, but it is not necessary that the company has her headquarters on the Canary Islands. The maximum amount destined to RIC investments are 90% of the undistributed profits after taxes. The calculation also influences the reduction of the decrease of own funds which have been introduced in this and the next business year. The effect of the tax advantage is immediately and showed in the tax return of this year in form of significant tax savings in the companies tax return: profit before taxes 100 reserve to RIC -90 taxable base 10 taxes on profits (30% o 35%) The investment must remain five years in the possession of the company and during the whole time the account of the RIC investments must be performed in the accountancy and in the balance. During these 5 years the assets may not be sold or rented. The valid elements of fixed assets for the materialization have to be new (areas to construct, buildings, facilities, machinery, vehicles, etc.) and only fulfilling many requisites they can be second-hand. In addition, the materialization can also occur in title of national debts which are spent by public canary authorities with a limitation of maximum 50% of the reserve. If non performance of any circumstance exists, it could be regularized voluntarily, paying the enjoyed tax saving and the interests of corresponding delay. TO BE CONTINUED ...............