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Practical Manual of Companies 2023.

Calculation

Regulation: Article 30 bis LIS

1. Minimum tax amount

The liquid 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 result of applying the 15 percent to the tax base:

  • Decreased 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 liquid quota .

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

  1. The percentage of 15 percent will be:

    • 10 percent for newly created entities that pay taxes at 15 percent according to the provisions of article 29.1 of the LIS.

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

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

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

2. Rules to determine minimum taxation

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

    • Bonuses that are applicable, including those regulated in Law 19/1994, of July 6, modifying 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 of the special international tax transparency regime (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) it results:

    • An amount lower than the minimum liquid quota calculated in accordance with the provisions of section 1 of article 30 bis of the LIS, said lower amount will, exceptionally, be considered the minimum liquid quota.

    • An amount greater than the minimum liquid quota calculated in accordance with the provisions of section 1 of article 30 bis of the LIS, the remaining deductions that are appropriate will be applied with their applicable limits, up to the amount of said minimum liquid quota.

    The deductions whose amount is determined in accordance with the provisions of Law 20/1991, of June 7, modifying the tax aspects of the Economic Fiscal Regime of the Canary Islands, and in Law 19/1994, of July 6, of modification of the Economic and Fiscal Regime of the Canary Islands, will be applied, respecting their own limits, even if the resulting liquid quota is lower than the aforementioned minimum liquid quota.

The amounts that cannot be deducted by application of the rules contained in the previous paragraphs may be deducted in the following tax periods in accordance with the regulations applicable in each case.