Minimum taxation

Law 22/2021, of December 28, on the General State Budget for the year 2022, with effect for tax periods beginning on or after January 1, 2022, establishes in article 30 bis of the LIS a minimum taxation of 15 percent of the taxable base for those taxpayers with a net turnover equal to or greater than twenty million euros and in any case, for those who pay taxes under the fiscal consolidation regime.

For these purposes, the net rate may not be less than the result of applying 15 percent to the tax base, reduced or increased by the equalization reserve, and reduced by the Reserve for investments in the Canary Islands. This fee will have the character of minimum net fee .

The provisions of the preceding paragraphs shall not apply to taxpayers who pay taxes at the tax rates of 10 percent, 1 percent and 0 percent provided for in sections 3, 4 and 5 of article 29 of the LIS, nor to SOCIMI .

The minimum tax rate referred to above of 15 percent will be 10 percent for newly created entities, whose general rate is 15 percent, and 18 percent for credit entities and entities engaged in exploration, research and exploitation of hydrocarbon deposits and underground storage facilities, whose general rate is 30 percent. 

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 the provisions of Law 20/1990, of December 19, on the Tax Regime of Cooperatives.

In the entities of the Canary Islands Special Zone , the positive tax base on which the percentage referred to in this section is applied will not include the part thereof corresponding to operations carried out materially and effectively in the geographical area of said Zone that are taxed at the special tax rate regulated in article 43 of Law 19/1994, of July 6, amending the Economic and Fiscal Regime of the Canary Islands.

You can consult the rules for determining the minimum net quota in Chapter 6 of this Practical Manual.