Skip to content

Where are you from?

Choose your province and we will tell you how the deputies and senators you elected vote, one by one.

 

We remember it in this browser. If you create an account, we keep it there.
Sign in

Type a law, a topic, a person or a province.

What it is

New special tax system for the Canary Islands

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 31 July 1990. Introduced by: Gobierno.

Official title: Government bill on the Modification of the Fiscal Aspects of the Canary Islands Special Economic Regime.

Follow this law

Source: Congreso de los Diputados, file 121/000032· updated 11 Nov

Automatic summary, not yet reviewed

  1. The Law adapts the Economic and Fiscal Regime of the Canary Islands to Spain's entry into the European Community, aiming to promote the economic and social development of the Archipelago and guarantee funding for its local corporations.
  2. It creates the Canary Islands General Indirect Tax (IGIC Canary Islands General Indirect Tax (Impuesto General Indirecto Canario): the tax on consumption in the Canary Islands, similar to VAT but with lower rates.), which replaces the Tax on Business Traffic and the Island Levy on Luxury Goods. It applies to deliveries of goods, provision of services and imports in the Canary Islands.
  3. IGIC rates are lower than VAT in the rest of the country: a zero rate for products such as medicines, books and transport between islands, a reduced rate of 1 to 3%, a general rate of 3 to 6% and increased rates of up to 28%.
  4. Many operations are exempt from IGIC, such as health care, education, social services, insurance, exports and residential rentals.
  5. It creates the Production and Import Levy (Arbitrio The name given in the Canary Islands to certain taxes whose revenue goes to the local corporations of the islands. sobre la Producción e Importación), a state indirect tax on the production and importation of goods in the Canary Islands, with rates between 0.1% and 5% (up to 15% for tobacco).
  6. Businesses can deduct from IGIC the tax they paid when buying goods or services for their activity, and there are special simplified schemes for small businesses, farming, travel agencies and used goods.
  7. IGIC revenue is split between the Autonomous Community of the Canary Islands (50.35%) and the Island Councils (Cabildos Insulares) (49.65%), and the Councils pass part of it on to the Town Councils.
  8. Tax incentives for investment in the Canary Islands are kept: companies can still use the Investment Provision Fund and benefit from an investment deduction more favorable than in the rest of the country.

Who it affects

  • Businesses and self-employed people in the Canary Islands: They must stop applying the IGTE and the Luxury Levy and start invoicing under IGIC and the Production and Import Levy, with new invoicing, accounting and filing duties.
  • Consumers and travelers in the Canary Islands: They pay lower rates than in the rest of Spain on most products and services, and some basic goods have a zero rate.
  • Island Councils (Cabildos) and Town Councils in the Canary Islands: They receive the revenue from the Production and Import Levy and a share of IGIC, keeping their funding.
  • Companies investing in the Canary Islands: They benefit from more favorable investment deductions and from the transitional regime of the Investment Provision Fund.

Words worth knowing

IGIC
Canary Islands General Indirect Tax (Impuesto General Indirecto Canario): the tax on consumption in the Canary Islands, similar to VAT but with lower rates.
Arbitrio
The name given in the Canary Islands to certain taxes whose revenue goes to the local corporations of the islands.
Cabildo Insular
The government body of each Canary Island, with functions similar to those of a provincial council.
Sujeto pasivo
The person or company legally required to pay the tax or to pass it on to the buyer.
Base imponible
The taxable base: the amount on which the tax rate is applied to calculate what must be paid.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced31 July 1990Someone registers the text in the Congreso.
  2. Admitted6 September 1990The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsno dateGroups propose changes.
  4. Committeeno dateA committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senateno dateThe Senate can pass it, amend it or veto it.
  7. BOEno dateIt is published in the Official State Gazette (BOE) and comes into force.
See the 2 official steps on a timeline
Jul 1990Aug 199011. 31 July 1990: Presentación22. 6 September 1990: Calificación

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

Published in the BOE: Law 20/1991, of June 7, amending the tax aspects of the Special Tax Regime of the Canary Islands.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

Read the full method · Report an error