The Government Council has given the green light to a decree that introduces modifications in tax, budgetary, and social services to update the current regulations.
The Government Council of the Canary Islands has approved a decree that introduces a series of tax, budgetary, and social modifications, aimed at updating regional regulations and adapting them to current needs. The measure, driven by the ministries of Finance and Relations with the European Union and Social Welfare, Equality, Youth, Childhood, and Families, seeks to address specific situations and unify the wording of previous provisions.
In the fiscal area, one of the main novelties is the inclusion of biofuels in the regulations of the Canary Islands General Indirect Tax (IGIC), the Tax on Imports and Deliveries of Goods in the Canary Islands (AIEM), the Tax on Fuels, and the Fiscal Charge on petrol and diesel. This ensures a uniform treatment for the taxation of the delivery or import of fuels derived from the refining of oil mixed with biofuel.
Another relevant modification affects mutual guarantee societies. The regulation of the reduced rate of the Documented Legal Acts modality of the Tax on Property Transfers and Documented Legal Acts is adapted, eliminating the territoriality criterion as a determining element for its application. This change responds to the doctrine of the Constitutional Court and seeks to facilitate the operations of these entities.
Additionally, an exceptional and temporary zero tax rate regime is established in the AIEM for the importation of carbon dioxide, which will be in effect until March 31, 2027. This measure is operational in nature and aims to alleviate the tax burden on this product.
Management of European funds
The decree also includes measures to improve the management of the Next Generation recovery European funds. It emphasizes administrative streamlining and planning of resources from this instrument, granting greater flexibility to the processing of multi-year and advance expenses financed by the Recovery and Resilience Mechanism (MRR). The goal is to prevent the loss of these funds, crucial for the economic reactivation of the islands.
Reform of the Social Services Law
In the social sphere, the regulation includes the reform of the Canary Islands Social Services Law. The modification adapts regional legislation to the new model of operation, accreditation, and quality of social resources. A clear differentiation is established between the launch of centres and their linkage to the public system.
Thus, the law will allow the authorization for the opening and commencement of activity of centres and services to be carried out through a responsible declaration, while maintaining the powers of verification, inspection, and control of the Administration. Administrative accreditation will be linked to the provision of contracted services or those financed with public funds, significantly reducing the times for incorporating new resources.
The reform also updates the registration, inspection, and control regime provided in the Social Services Law to make it fully coherent with the new accreditation regulation, which is expected to be approved soon. This aims to ensure legal security for both the Administration and the service-providing entities.
With this decree, the Canary Government aims to respond to needs identified in daily management and adapt regulations to legal and economic changes, with a direct impact on citizens and the business fabric of the islands.
You may also like
