Minimum taxation of permanent establishments

Law 22/2021, of December 28, on the General State Budgets for the year 2022, with effects for tax periods starting on January 1, 2022, modifies sections 4 to 6 of article 19 of TRLIRNR , introducing the concept of liquid quota of the Income Tax on non-Residents, defined as the result of applying the bonuses and deductions provided for in the regulations of the Corporate Tax which, in no case, may be negative.

These deductions and bonuses will be made depending on the circumstances that occur in the permanent establishment, without being transferable to those of others other than the same taxpayer in Spanish territory.

The amount of withholdings, deposits on account and installment payments will be deductible the net amount.

In the event that these withholdings, deposits on account and installment payments actually made exceed the liquid amount of the tax, the Tax Administration will proceed to return the excess ex officio, in accordance with the provisions of article 127 of the LIS .

On the other hand, Law 22/2021, of December 28, adds the tenth Additional Provision to the TRLIRNR, establishing that with effects for the tax periods that begin on January 1, 2022, to determine the tax debt of the Non-resident Income Tax, the minimum taxation regulated in article 30 bis of the LIS will be applied.