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 jointly pay taxes to the State Administration and the Provincial Councils of the Basque Country, provided that they are also to State regulations. 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 (amended 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 fiscal year has exceeded 10 million euros.

• That, having their tax domicile in the foral territory, they carry out operations in both territories (common and foral) during the tax period, their volume of operations in the immediately preceding fiscal year has exceeded 10 million euros and the total of the operations carried out in the common territory constitute, at least, 75 percent of the total of those carried out in the previous fiscal year.

The above criteria are also applicable to non-resident income tax payers who obtain income subject to the same through a permanent establishment.

In addition, the following clarifications must be taken into account:

• The split payments will be made in proportion to the volume of operations carried out in each territory according to the proportion determined in the last tax return.

• The tax groups are subject to the regional tax consolidation regime when the parent entity and all subsidiaries were subject to regional regulations under an individual tax regime. Likewise, they will be subject to the common territory tax consolidation regime when the parent entity and all subsidiaries were subject to the common territory tax regime under an individual taxation regime. For these purposes, companies that are subject to the other regulations are considered excluded from the tax group.

  In accordance with the provisions of Additional Provision twelfth of LIS , for the purposes of the tax consolidation regime established in Chapter VI of Title VII of the LIS, tax groups in which the dominant entity is a entity resident in Spanish territory and subject to the regional regulations in the Corporate Tax in accordance with the Economic Agreement with the Autonomous Community of the Basque Country, will be treated as equivalent in their tax treatment to tax groups in which the dominant entity is not resident in Spanish territory.

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

See summary table on the criteria for determining the applicable regulations for the purposes of Corporate Tax in the Basque Country.