Calculation of the taxable base

Re regulation: Article 44 Law 19/1994

To determine the part of the tax base of the entity of the ZEC that, for the purposes of applying the special tax rate, is derived from operations carried out materially and effectively within the geographic area of the ZEC, the percentage resulting from multiplying by one hundred the result of a fraction that includes the following will be applied to the entity's tax base:

1. In the numerator , with positive sign:

   1. The transfers of tangible personal property carried out within the geographical area of the ZEC.

      These transmissions will be considered to have taken place within the geographical area of the ZEC :

      • When the is made available to the purchaser within said area or the expedition or transport necessary for said availability is initiated from there.

      • In the case of the acquisition of goods for resale without the goods actually passing through Canary Islands territory, the commercial operations have been carried out within the geographical area of the ZEC and determine the closing of a commercial cycle with economic results in said area. That is, when the following requirements are met:

        • When they have been organized, directed, contracted and billed from the geographic area of the ZEC, and

        • At least ninety percent of the expenses incurred in carrying out such operations, excluding the cost of acquiring the tangible assets delivered and those associated with their transport and trafficking, correspond to the use of the entity's personal and material resources located in the Canary Islands.

        Information obligation:

        With effect for periods beginning on or after January 1, 2023, ZEC entities that pay corporate tax and carry out operations involving the acquisition of goods for resale as defined in the previous point must submit a quarterly information declaration of operations with goods carried out outside the ZEC. For these purposes, Order HFP/1285/2023, of November 28, approves the new model 281 “Quarterly informative declaration of tangible goods trade operations carried out in the ZEC without the goods transiting through Canary Islands territory” where the origin and destination of the goods, the type of goods, quantity and other required information will be stated, in accordance with the Union customs code and other applicable regulations:

        • This declaration shall be submitted electronically in relation to trading operations carried out in each calendar quarter.

        • The deadline for filing the declaration will be between the first and the last day of the calendar month following the end of the quarter to which the declaration refers. This declaration must provide information on all operations carried out quarterly since January 1, 2023, so exceptionally the declarations corresponding to the first three quarters of 2023 must have been submitted within the period of the quarterly declaration for the fourth quarter of 2023: January 2024. 

        In addition, these entities are required to keep a record book of trade operations in tangible goods carried out in the ZEC without the goods transiting through Canary Islands territory under the terms provided for in the aforementioned Order HFP/1285/2023.

      When the goods are subject to installation or assembly outside the geographic area of the ZEC , the value of the preparation and manufacturing work carried out in said area and the value of the services provided to complete the delivery or installation will be included, provided that they are carried out with the means assigned to the ZEC entity located within its geographic area, without prejudice to their travel for the installation as long as this does not exceed six months in the annual calculation.

   2. The transfers of real estate that form part of the fixed assets assigned to the activity, including real rights thereto, when the assets are located within the geographical area of the ZEC.

   3. The services provided using the entity's resources located within the scope of the ZEC. For these purposes, operations with goods and services carried out through the use of information and telecommunications technologies , with the entity's resources located within the scope of the ZEC, will be considered as such.

   4. The transfer of rights of use or exploitation of computer applications, of industrial property rights that are not mere distinctive signs of the taxpayer or its products, and of intellectual property rights, as well as their transmission to non-related entities, created by the entity in the geographical area of the ZEC, in the proportion that they are located in the geographical area of the ZEC.

   5. The operations carried out from the activity centers of the ZEC entity located within the geographic area of the ZEC destined for its branches located outside said geographic area, when they have been used by the branch for the delivery of goods or the provision of services to third parties.

2. In the numerator , with negative sign :

   • The operations received by the activity centers of the ZEC entity located within the geographic area of the ZEC from its branches located outside said geographic area, provided that they have been used by the ZEC entity for the delivery of goods or the provision of services to third parties.

   • The transfers of assets acquired by the ZEC entity from entities that do not have the status of a ZEC entity as a result of operations covered by the special regime regulated in Chapter VII of Title VII of the LIS .

3. The denominator include the amount of all income and other positive components of the taxable base of the ZEC entity.

4. The percentage resulting from the previous fraction is rounded to the next higher unit.

The special tax rate of 4 percent will apply exclusively to the part of the tax base that corresponds to the lowest of the following amounts:

1. The amount resulting from applying the percentage determined in section 1 to the tax base.

2. The amount that results from the application of the following rules:

   • 1,800,000 euros, for those ZEC entities that meet the minimum job creation requirement provided for in article 31.2.e) of Law 19/1994.

   • An additional 500,000 euros for each job exceeding the minimum indicated, up to 50 jobs.

   • The creation of jobs above 50, as well as that referred to in the two previous rules, will be subject, in all cases, to the following limit: The reduction of the total tax rate in each tax period, after applying the special rate applicable in the ZEC, in relation to the general rate of Corporate Tax, may not exceed 30 percent of the net amount of the turnover of the ZEC entity.

     net job creation means the number of net jobs created in the geographic area of the ZEC since the registration of the ZEC entity, excluding, where applicable, incorporations from a previous workforce. The variations in net job creation will take effect in the tax year in which they occur.