Legal provisions of COM(2020)355 - AIEM tax applicable in the Canary Islands - Main contents
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dossier | COM(2020)355 - AIEM tax applicable in the Canary Islands. |
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document | COM(2020)355 ![]() |
date | November 16, 2020 |
Article 1
2. Application of the total exemptions or of the partial reductions referred to in paragraph 1 shall not lead to differences in excess of 15 % for the products falling within the categories listed in Annex I.
The Spanish authorities shall ensure that the exemptions or reductions applied to the products do not exceed the percentage strictly necessary to maintain, promote and develop local activities. The authorised tax differential shall not exceed the proven additional costs.
3. The fiscal advantage shall apply subject to a limit of EUR 150 million per annum, except in duly justifiable cases.
Article 2
(a) | local production exists and its share of the local market accounts for at least 5 %; |
(b) | significant importation of goods (including from mainland Spain and other Member States) exists which could jeopardise the continuation of local production, and its share of the local market accounts for at least 10 %; |
(c) | additional costs exist which increase the costs of local production in comparison with products produced elsewhere, compromising the competitiveness of products produced locally. |
2. The Spanish authorities may derogate from the market share thresholds referred to in points (a) and (b) of paragraph 1 in duly justified circumstances, which include:
(a) | labour-intensive production; |
(b) | production which is otherwise of strategic importance for local development; |
(c) | production subject to periodical fluctuations; |
(d) | production located in particularly disadvantaged areas; |
(e) | production of medical products and personal protective equipment required to address health crises. |