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

Regulation: DA 70. Five Law 31/2022; Articles 25 to 28 DR710/2024

Corporate Tax payers will apply a bonus of 10 percent of the full share corresponding to the income derived from the sale of tangible goods produced in the Balearic Islands by themselves, from agricultural, livestock, industrial and fishing activities, in the latter case in relation to catches made in their fishing and aquaculture area.

Keep in mind:

The following will not be part of the performance on which the bonus can be applied: subsidies and aid, unless these must be passed on to the end user in the sale price of the product.

In relation to the fishing activities eligible for the bonus, it will be necessary for deep-sea fishing to be landed in the Balearic ports and handled or processed in the archipelago.

A. Requirements

They can apply This bonus in each tax period:

Entities domiciled in the Balearic Islands or 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 start 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 employed persons will be taken, in accordance with the terms established by labor legislation, taking into account the contracted working day in relation to the full working day.

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

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

They will not understand each other as shipbuilding activities those that produce recreational floating devices referred to in article 3.3 of Royal Decree 875/2014, of October 10.

B. Increase in bonus

This bonus will be increased up to 25 percent in those tax periods in which, in addition to meeting the average workforce requirement provided for in the previous section, there has been an increase in the average workforce of no 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.

C. Completion of Form 200

Corporate Taxpayers who are entitled to apply this bonus must first tick box [00086] "Special regime for the Balearic Islands" on page 1 of Form 200.

Next, they must enter the bonus amount in box [00815] "Bonus on income from sales of tangible assets produced in the Balearic Islands (DA 70.Five Law 31/2022)" on page 14 of form 200.