Reduces corporate income tax rate and approves a new special tax regime for investment in the Balearic Islands
23 Dec 2022
On 23 December 2022, Spain approved the General State Budget Law for 2023 that, among others:
1) It reduced the CIT rate from 25 to 23 per cent for entities with net revenues below 1 million EUR;
2) Introduced a new special tax regime for the Balearic Islands composed of two tax benefits for 2023-2028 taxable periods. These are: a reduction in the tax base for the profits that are destined to the provision of a reserve to make certain investments in the Balearic Islands including creation of jobs, R&D&I expenses and certain assets acquisition; and a quota bonus for taxpayers who develop industrial, agricultural, livestock and fishing activities.
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Type:
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Treatment and operation (Corporate taxation)
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Promotion and facilitation (Investment incentives, Special economic zones)
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Industry:
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Not industry specific
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Primary (Agriculture, forestry and fishing)
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Sources:
