Joint taxation system with Navarra

This section of 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 Community Foral de Navarra, provided that, in addition, are subject to State regulations. This group of taxpayers is made up of those who meet one of the following two circumstances:

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

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

To determine the taxation of tax groups, the following rules will be applied:

• 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.

• The tax consolidation regime will be the one corresponding to that of the Foral Community when the dominant company and all the subsidiaries are subject to foral regulations in the tax regime individual. On the other hand, it will be the one corresponding to the tax consolidation regime of common territory when the dominant company and all the dependent companies were subject to the tax regime of the common territory in an individual tax regime. For these purposes, companies that are subject to the other regulations will be considered excluded from the tax group.

  The tax groups in which the dominant entity is subject to regional regulations under the regime of individual taxation, will be equal in their tax treatment to the tax groups in which the dominant entity is non-resident in Spanish territory.

  In any case, the same regulations will be applied to those established at any time by the State for the definition of tax group, dominant company, dependent companies, degree of dominance and internal operations of the group.

  On the other hand, and in accordance with the provisions of the seventeenth transitional provision of Law 28/1990, of December 26, which approves the Economic Agreement between the State and the Foral Community of Navarra, added by Law 14/2015, of June 24:

  • The tax groups subject to common regulations in tax periods beginning before January 1, 2015 that include dependent entities subject to the regional regulations of Navarra under individual regime, may opt to keep said entities in the tax group in the tax periods that begin later, provided that the start date of these is not later than December 31, 2024 and the requirements established in the article 58 of LIS .

  • The option indicated in the previous paragraph must be exercised in the first tax period that begins on January 1, 2015 and will be communicated to the Tax Treasury of Navarra and the State Tax Administration. Once the option is exercised, the tax group will be linked to it during the following tax periods, as long as the requirements of article 58 are met and as long as its application is not waived. The waiver must be exercised within 2 months from the end of the last tax period of its application and must be communicated to both Administrations.

• The tax regime of the economic interest groups and temporary unions of companies will correspond to Navarra when the entire of the entities that comprise them are subject to regional regulations, without prejudice to the fact that the distribution of the profit of said groupings of companies is carried out in accordance with the criteria indicated, for the purposes of Corporate Tax, in the Economic Agreement between the State and the Foral Community of Navarra.

Finally, regarding the determination of the regulations applicable for the purposes of Corporate Tax in the Basque Country and Navarra, the following diagram is reproduced below: