Joint tax system 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, are subject to the regulations of State . This group of taxpayers is one that meets one of the following two circumstances, in accordance with the provisions of the Economic Agreement with the Autonomous Community of the Basque Country approved by Law 12/2002, of May 23 (modified by Law 28/ 2007, of October 25, by Law 7/2014, of April 21, by Law 10/2017, of December 28 and by Law 1/2022, of February 8):

• 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 financial year has exceeded 10 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 10 million euros and 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.

In addition, the following details must 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 return.

• The tax groups are subject to the regional tax consolidation regime when the dominant entity and all the dependent entities are subject to regional regulations in the individual tax regime. Likewise, they will be subject to the tax consolidation regime of the common territory when the dominant entity and all the dependent entities are subject to the tax regime of the 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 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 a entity resident in Spanish territory and subject to the regional regulations in Corporate Tax in accordance with the Economic Agreement with the Autonomous Community of the Basque Country, will be equal in their tax treatment to the tax groups in which the dominant entity is non-resident in Spanish territory.

• The tax regime of the economic interest groups and temporary unions of companies corresponds to the Basque Country , when All of the entities that comprise them are subject to regional regulations.

Consult summary table on the criteria to determine the applicable regulations for the purposes of Corporate Tax in the Basque Country.