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Form 200. Corporate Income Tax Declaration 2019

11.8.1.1 Joint taxation regime with the Basque Country

This section (on page 26 of form 200) must be completed by all those taxpayers of Corporate Tax who must pay taxes jointly to the State Administration and the Provincial Councils of the Basque Country, provided that, in addition, they are subject to State regulations. This group of taxpayers are those who meet one of the following two circumstances, in accordance with the provisions of the aforementioned Economic Agreement:

  • That, having their tax domicile in common territory, they carry out operations in both territories (common and regional) during the tax period and that their volume of operations in the immediately preceding fiscal year has exceeded 7,000,000 euros.

  • That, having their tax domicile in the provincial territory, they carry out operations in both territories (common and provincial) during the tax period, their volume of operations in the immediately preceding fiscal year has exceeded 7,000,000 euros and the total of the operations carried out in common territory constitute at least 75 percent of the total of those carried out in the previous year.

The above criteria are also applicable to non-resident Income Tax taxpayers who obtain income subject to it through a permanent establishment.

The following details should be taken into account:

  • The installment payments will be made in proportion to the volume of operations carried out in each territory in accordance with the proportion determined in the last tax declaration-settlement.

  • Tax groups are subject to the regional tax consolidation regime when the dominant company and all the dependent companies are subject to regional regulations in the individual tax regime, and will be subject to the common territory tax consolidation regime when the dominant company and all the dependent companies are subject to the regional tax consolidation regime. subject to the tax regime of common territory in the individual tax regime. For these purposes, companies that are subject to other regulations are considered excluded from the tax group.

    In accordance with the provisions of the twelfth Additional Provision of the LIS , for the purposes of the fiscal consolidation regime established in Chapter VI of Title VII of the LIS, the tax groups in which the dominant entity is an entity resident in Spanish territory and subject to the regional regulations on Corporate Tax in accordance with the Economic Agreement with the Autonomous Community of the Basque Country, their tax treatment will be equivalent to the tax groups in which the dominant entity is a non-resident in Spanish territory.

  • The tax regime for economic interest groups and temporary joint ventures corresponds to the Basque Country when all of the entities that comprise them are subject to regional regulations.

In the event of the start of the activity in the year, to calculate the figure of 7,000,000 euros, the volume of operations carried out in said year will be taken into account. If this exercise is less than one year, for the calculation of the previous figure, the operations carried out will be increased to one year. Until the volume and place of execution of the operations are known, those that the taxpayer estimates based on the operations that he plans to carry out during the year at which the activity begins will be taken as such, for all purposes.