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Practical Manual of Companies 2023.

2. Special regime for industrial, agricultural, livestock and fishing companies

Regulation:  DA 70. Five Law 31/2022

Corporation Tax taxpayers will apply a bonus of 10 percent of the full quota corresponding to the income derived from the sale of tangible assets produced in the Balearic Islands by themselves, related to activities agricultural, livestock, industrial and fishing, in the latter case in relation to the catches made in its fishing and aquaculture area.

This bonus will not be applicable to income derived from the sale of tangible assets produced in the Balearic Islands from shipbuilding activities, synthetic fibers, the automobile industry, the steel industry and the coal industry. 

a. Requirements 

They can apply this bonus in each tax period:

  • Entities domiciled in the Balearic Islands or in other territories that are dedicated to the production of such goods in the archipelago, through a branch or permanent establishment.

  • Whose average workforce in said period is not less than the average workforce corresponding to the twelve months prior to the beginning of the first tax period in which this special regime takes effect.

    When the entity has been established within the aforementioned period of twelve months, the average workforce resulting from that period will be taken into account.

    For the calculation of the average workforce of the entity, the people employed will be taken, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.

    Compliance with the requirement to maintain employment in successive tax periods will refer to the average workforce of the entity's first tax period.

  • When the entity has been established in the first tax period in which this special regime takes effect, the application of the bonus will require that said entity meet the requirements for the tax rate to be applicable. reduced for newly created entities regulated in article 29.1 of the LIS. In this case, compliance with the requirement to maintain employment in successive tax periods will refer to the average workforce of the entity's first tax period.

b. Increased bonus

This bonus will increase up to 25 percent in those tax periods in which, in addition to meeting the average headcount requirement provided for in the previous section, there has been an increase in the average headcount. not less than one with respect to the average workforce of the previous tax period and said increase is maintained for at least a period of three years from the end date of the tax period in which this increased bonus is applied.

In the event that the entity is established in the first tax period in which this special regime takes effect, the application of the bonus will require that said entity meet the requirements for the tax to be applicable. reduced tax rate for newly created entities regulated in article 29.1 of the LIS. For these purposes, the average workforce of the entity prior to the entity's first tax period will be considered to be zero.

c. Filling in form 200

Corporate Tax taxpayers who have the right to apply this bonus must first check the box [00086] “Special regime for the Balearic Islands” on page 1 of model 200.

Next, they must enter the amount of the bonus in the box [00815] «Bonus income from sales of tangible goods produced in the Balearic Islands (DA 70.Cinco Law 31/2022)» of the page 14 of model 200.