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Practical Manual of Companies 2023.

Special Economic and Fiscal Regime of the Canary Islands

With effect for tax periods beginning on or after January 1, 2023, Law 31/2022, of December 23, introduces the following modifications in relation to the special regime of the Canary Islands Special Zone (hereinafter, ZEC):

  • In letter c) of article 42.1 of Law 19/1994 is established for taxpayers who carry out trade operations in goods to which letter a) (ii) of section 1 of article 44 of said Law refers to the obligation to subscribe quarterly informative declaration of operations with goods carried out outside the ZEC 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 . They must also keep records of the corresponding customs documentation.

    For these purposes, Order HFP/1285/2023, of November 28, approves the new model 281 «Quarterly informative declaration of trade operations in tangible assets carried out in the ZEC without the goods transit through Canarian territory" which must be presented quarterly by those obliged to declare. In addition, this Order regulates the content, term and formal requirements of the "Record book of trade operations in tangible assets carried out in the ZEC without the goods transiting through Canary Islands."

  • A new wording is given to article 44 of Law 19/1994 for the purposes of determining the part of the tax base of the ZEC entity that, for the purposes of applying the special rate of lien, is derived from the operations carried out materially and effectively in the geographical scope of the ZEC.

  • article 50 bis is added to the Regulations for the development of Law 19/1994 , approved by Royal Decree 1758/2007, of December 28, to establish in relation to the determination of the part of the tax base corresponding to operations carried out effectively and materially in the geographical scope of the ZEC in which cases it is considered that aircraft contribute to improving the connections of the Canary Islands.