Specialities of the Tax System

Regulation: Articles 43 Law 19/1994

The entities of the ZEC will pay Corporate Tax with the following specialties:

1. They will apply the special tax rate of 4 percent to that part of the tax base that corresponds to the operations that they materially and effectively carry out in the geographical scope of the ZEC.

   Keep in mind: 

   According to the provisions of Additional Provision fourteen bis of Law 19/1994, of July 6, in the case of branches of the ZEC of entities with tax residence in Spain , the application of the special tax rate will not prevent said entities from being part of a tax group that applies the tax consolidation regime provided for in Chapter VI of Title VII of the LIS .

   In these cases, the part of the tax base of the entity that is part of a tax group and that 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, being the subject of separate declaration in the terms that are determined by regulation (see the section related to how ZEC entities must complete form 200 ).

2. They will keep their accounting in accordance with the provisions of the Commercial Code and other accounting regulations that apply to them, with the following specialties:

   1. They must individualize in separate accounts the operations that must appear in the numerator of the fraction by which the percentage that will be applied to the tax base is calculated to determine the part that will be taxed at the special rate .

   2. They must keep separate accounting from that kept by branches to which ZEC benefits do not apply.

   3. They must include in the report a breakdown of the part of the profit and loss account, as well as all those accounts that reflect the application of the profit, which comes from the operations carried out effectively and materially in the geographical scope of the ZEC.