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Practical Manual for Companies 2022.

Calculation

Regulation: Article 30 bis LIS

1. Minimum tax amount

The net quota understood as the amount resulting from applying the bonuses and deductions established in the Corporate Tax regulations (article 30.2 of the LIS) to the full quota, may not be less than the result of applying 15 percent to the tax base:

  • Reduced or increased, where appropriate and as appropriate, by the amounts derived from the application of the leveling reserve regulated in article 105 of the LIS and

  • Reduced in the Reserve for investments in the Canary Islands regulated in article 27 of Law 19/1994, of July 6.

The resulting quota will have the character of minimum net quota .

However, for the purposes of calculating the minimum net quota, the following specialties must be taken into account:

  1. The percentage of 15 percent will be:

    • From 10 percent for newly created entities that pay 15 percent as provided in article 29.1 of the LIS.

    • From 18 percent for credit institutions and entities dedicated to the exploration, research and exploitation of hydrocarbon deposits and underground storage facilities that pay 30 percent as established in article 29.6 of the LIS.

  2. In the case of cooperatives , the minimum net share may not be less than the result of applying 60 percent to the full share calculated in accordance with their special regulations.

  3. For entities in the Canary Islands Special Zone ZEC), the positive tax base on which the 15 percent rate is applied will not include the part thereof corresponding to operations carried out materially and effectively within the geographical area of said Zone are taxed at the special tax rate of 4 percent established in article 43 of Law 19/1994, of July 6.

2. Rules for determining minimum taxation

  1. Firstly, the full quota is reduced by the following amounts:

    • Bonuses that are applicable, including those regulated by Law 19/1994, of July 6, amending the Economic and Fiscal Regime of the Canary Islands.

    • Deduction for investments made by port authorities regulated in article 38 bis of the LIS.

  2. Secondly, the following deductions apply:

    • Deductions for international double taxation (articles 31 and 32 of the LIS).

    • Deductions for double taxation under the special regime for international tax transparency (article 100 of the LIS).

    • Deductions for internal double taxation of the transitional regime (twenty-third transitional provision of the LIS).

  3. If after applying the bonuses and deductions referred to in letters a) and b) the following results:

    • An amount lower than the minimum net quota calculated as provided for in section 1 of article 30 bis of the LIS, said lower amount, exceptionally, will be considered the minimum net quota.

    • A amount greater than the minimum net quota calculated as provided for in section 1 of article 30 bis of the LIS, the remaining deductions that are applicable will be applied with their applicable limits, up to the amount of said minimum net quota.

    Deductions whose amount is determined in accordance with the provisions of Law 20/1991, of June 7, amending the fiscal aspects of the Economic Fiscal Regime of the Canary Islands, and Law 19/1994, of July 6, amending the Economic and Fiscal Regime of the Canary Islands, will be applied, respecting their own limits, even if the resulting net quota is less than the aforementioned minimum net quota.

Amounts that cannot be deducted by applying the rules contained in the preceding paragraphs may be deducted in subsequent tax periods in accordance with the regulations applicable in each case.