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Practical Handbook for Companies 2021

Specialities of the Tax System

Regulation:Article 43 Law 19/1994

Entities in the ZEC will pay corporation tax with the following special features:

  1. They will apply the special tax rate of 4 per cent to that part of the tax base that corresponds to the operations that are materially and effectively carried out in the geographical area of the ZEC.

    To be taken into account:

    According to the provisions of additional provision fourteen bis of Law 19/1994, of 6 July, in the case of branches in the ZEC of entities with their tax residence in Spain, the application of the special tax rate will not prevent these entities from forming part of a tax group that applies the tax consolidation system provided for in Chapter VI of Title VII of the CTA.

    In these cases, the part of the tax base of the entity which forms part of a tax group and which is attributable to the ZEC branch will not be included in the individual tax base of the entity for the purposes of determining the tax base of the tax group, and will be subject to separate tax return under the terms to be determined by regulations (see the section on on how ZEC entities should complete form 200).

  2. They will keep their accounts in accordance with the provisions of the Commercial Code and all other applicable accounting regulations, with the following special features:

    1. They should individualise into separate accounts the transactions to be included in the numerator of the fraction by which the percentage to be applied to the taxable base to determine the part to be taxed at the special rate is calculated.

    2. They will keep separate accounts from those kept by the branches to which ZEC benefits do not apply.

    3. They must include a breakdown in the annual accounts of the portion of the profit and loss account, as well as all the accounts that show the application of the profit that comes from operations carried out effectively and materially in the geographical area of the ZEC.

A tener en cuenta:

This tax system will not apply to ZEC entities in tax periods in which they come under the circumstances of incompatibility between State grants covered by additional provision twelve of Law 19/1994, of 6 July.