Entities subject to Corporation Tax with located in the Canary Islands may apply to a  series of deductions in the full amount of Corporation Tax, for Morocco, Mauritania, Senegal, Gambia, Guinea Bissau and Cape Verde investments.

Those entities whose net amount of turnover in the immediately preceding tax period is equal to or less than 10 million euros and with an average workforce in that period of less than 50 people, will have the right to make the following deductions from the full fee:

» 15 percent of the investments that are actually made in the constitution of subsidiaries or permanent establishments in said countries, provided that these entities carry out economic activities in said territories within 1 year from the time of investment. The application of the deduction will require the entity by itself or jointly with other entities with tax domicile in the Canary Islands to hold a percentage of participation in the capital or in the equity of the subsidiary of at least 50 percent and that the investment in said investee or permanent establishment is maintained for a period of at least 3 years.

» 15 percent of the amount paid for multi-year advertising expenses for launching products, opening and prospecting for markets abroad and attending fairs, exhibitions and similar events, including in this case those held in Spain with an international character.

In the case of entities whose net turnover exceeds the previous limit but does not exceed 50 million euros and the aforementioned average workforce is less than 250, the applicable deductions will have a limit of 10%.