Special tax regime of the Balearic Islands
If you are a resident of the Balearic Islands you should read this
Special regime for industrial, agricultural, livestock and fishing companies
1. Taxpayers of Corporate Tax and Non-Resident Income Tax will apply a 10% bonus on the full amount corresponding to the income derived from the sale of tangible goods produced in the Balearic Islands by themselves, typical of agricultural, livestock, industrial and fishing activities , in the latter case in relation to catches made in their fishing and aquaculture area. Those persons or 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, may benefit from this bonus.
2. The above bonus will also apply to Personal Income Tax payers who carry out the same activities and with the same requirements demanded of Corporate Tax payers, provided that they determine the income by the direct estimation method.
The bonus will be applied to the part of the full quota that proportionally corresponds to the income derived from the production activities indicated .
3. The application of the bonus in each tax period will require that the average workforce of the entity 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 the regime provided for in this section 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.
4. The bonus will be increased up to 25% in those tax periods in which, in addition to meeting the requirement set forth in the previous number, 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.
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6. When the entity has been established in the first tax period in which the regime provided for in this section takes effect, the application of the bonus will require that said entity meets the requirements for the application of the reduced tax rate for newly created entities regulated in article 29.1 of Law 27/2014, of November 27, on Corporate Tax . In this case, the rules set out in this number will be followed.
7. The bonus regulated in this section will not be applicable to the income derived from the sale of tangible goods produced in the Balearic Islands related to shipbuilding, synthetic fibres, the automobile industry, steel and coal industry activities.