2. Deduction for income derived from the sale of tangible assets produced in the Balearic Islands

Regulations: Seventieth Additional Provision. Five of Law 31/2022, of December 23, on the General State Budgets for 2023.

Temporal scope: This bonus will be applicable in the years 2023, 2024, 2025, 2026, 2027 and 2028 .

Deduction amount

In general

The 10 per 100 of the part of the full quota reduced, if applicable, in the amount of the deduction for the reserve for Investments in the Canary Islands , in the part that proportionally corresponds to the income derived from the sale of tangible assets produced in the Balearic Islands by the beneficiaries of the deduction, without prejudice to the limits established in the community order that may affect it .

See the table on the limits of aid to minimis , which are applicable to the tax benefits of the special tax regime of the Balearic Islands and are included in section 3 of this section on the special tax regime of the Balearic Islands.
Bonus percentage increase

The bonus will increase up to 25 per 100 in those tax periods in which, in addition, there has been an increase in the average workforce in the terms indicated in the following section .

Precisions:

In those cases in which IRPF is applicable, in addition to this bonus (deduction), the deduction for the reserve for investments in the Islands Balearic Islands, the quota eligible for a bonus will be the full quota minus the amount of the deduction for the reserve for Investments in the Balearic Islands, in the part that proportionally corresponds to the income derived from the sale of tangible assets produced in the Balearic Islands.

Likewise, in the case of marriage, if both spouses meet the requirements to apply this bonus, but only one of them applies the increased percentage, and provided that the full amount of the joint declaration is less than the sum of the bonuses Both of them can choose to first apply the bonus of the spouse to whom the increased percentage corresponds.

Example:

Filer

Income derived from tangible assets located in the Balearic Islands: 15,000
Applicable bonus percentage: 25%

Spouse

Income derived from tangible assets in the Balearic Islands: 5,000
Applicable bonus percentage: 10%

Joint declaration tax base (due to negative returns): 18,000

General full fee joint declaration: 1,800

Fee that corresponds to the declarant's income: 1,800 x 15,000 / 18,000 = 1,500

Share that corresponds to the spouse's income: 1,800 x 5,000 / 18,000 = 500

The sum of the quota that corresponds to the returns of both exceeds the general full quota, so the maximum amount to which the bonus can be applied will be its amount (1,800).

Declaring Bonus: 1,500 x 25% = 375

Declaring Bonus: 300 (*) x 10% = 30

(*) When the declarant applies the bonus on 1,500, the spouse may only apply the bonus on the remaining amount of the installment: 1,800 – 1,500 = 300

The amount of the bonus in joint taxation will be 375 + 30 = 405

Requirements

To apply the bonus, the following requirements must be met:

That the tangible goods produced in the Balearic Islands derive from the exercise of agricultural, livestock, industrial and fishing activities , in the latter case in relation to the catches made in its fishing and aquaculture zone.
That taxpayers are domiciled in the Balearic Islands . If taxpayers are domiciled in other territories, they must dedicate themselves to the production of the aforementioned goods in the Balearic Islands through a branch or permanent establishment.

Note: Please note that this bonus does not apply to income derived from the sale of tangible goods produced in the Balearic Islands, typical of shipbuilding activities, synthetic fibers, the automobile industry, steel industry and the coal industry.

That taxpayers determine their returns in a direct estimation regime .
Maintenance or increase of the workforce .
1. For the application of the 10 percent percentage it is required that the entity's average workforce in said period be not less than the average workforce corresponding to the twelve months prior to the beginning of the first tax period in which the regime provided for in this section takes effect.
  
  When the entity has been established within the aforementioned period of twelve months, the average workforce resulting from that period will be taken into account.
  
  To calculate the average workforce, the people employed will be taken, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.
2. For the application of the increased percentage of 25 percent , in addition to the previous requirement (maintenance of the average workforce), it will be necessary that there has been an increase in the average workforce of no less than one with respect to of the average workforce of the previous tax period and said increase is maintained for at least a period of three years from the end date of the tax period in which this increased bonus is applied.
  
  To calculate the average workforce of the entity, the people employed will be taken, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.
  
  When the entity has been established in the first tax period in which the regime provided for in this section takes effect, the application of the bonus will require that it meets the requirements for the reduced tax rate to be applicable for newly created entities regulated in the article 29.1 of the LIS .
  For these purposes, an economic activity , will not be deemed to have been initiated in accordance with article 29.1 of the LIS , in the following cases:
  1. When the economic activity had been previously carried out by other persons or entities linked in the sense of article 18 of this law and transmitted, by any legal title, to the newly created entity.
  2. When the economic activity had been carried out, during the year prior to the constitution of the entity, by a natural person who holds a participation, direct or indirect, in the capital or own funds of the newly created entity greater than 50 percent. hundred.
    
    Nor are those that form part of a group under the terms established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts, considered newly created entities.
  In this case, the following rules will be followed:
  1. Compliance with the requirement to maintain employment in successive tax periods will refer to the average workforce of the entity's first tax period.
  2. To determine compliance with the requirement to increase the entity's average workforce, it will be understood that the workforce corresponding to the first tax period prior to incorporation is zero.
That the net returns eligible for bonuses are positive .

Note: Please note that this bonus is compatible , in terms of job creation, with the investment reserve in the Balearic Islands.