7.1.2 Bonus for income obtained in Ceuta and Melilla (Article 33 LIS)

• Bonus percentage : 50 percent.

• Entities affected by : Entities that operate effectively and materially in Ceuta, Melilla or their dependencies, that is, those Spanish entities that are domiciled for tax purposes in said territories or that operate in them through an establishment or branch and those foreign entities not resident in Spain and that operate in said territories through a permanent establishment.

• Bonified income : All income obtained in Ceuta, Melilla or their dependencies. These must be activities that determine the closing of a business cycle with economic results in said territories.

  For these purposes, the requirements of the previous paragraph will be considered met when it comes to leasing property located in these territories.

  Such circumstances shall not be deemed to exist when it concerns isolated operations of extraction, manufacturing, purchase, transportation, entry and exit of goods or effects in those and, in general, when the operations do not determine income by themselves.

  Reports:

  Those entities domiciled in Ceuta or Melilla that carry out the activity of exporting goods manufactured in those territories or acquired from a manufacturer in said territories or that have previously imported them, are entitled to a 50% bonus on the part of the full quota corresponding to the income derived from said operations, since all of them close a commercial cycle that determines economic results in the aforementioned territories.

  A company engaged in the transport of goods on behalf of others between Ceuta and the peninsula is entitled to the bonus, since this activity closes the economic cycle in Ceuta. If the company has a warehouse on the peninsula from which it sends and receives the goods, provided that the warehouse is not actually a branch of the transport company, it may apply this bonus.

• Application of this bonus

  For the purposes of applying the bonus in this article, it will be considered as income obtained in Ceuta or Melilla, provided that the entities have, at least, a fixed place of business in said territories, up to an amount of 50,000 euros per person employed with a full-time employment contract who performs their duties in Ceuta or Melilla, with a total maximum limit of 400,000 euros.

  If income exceeds this amount, proof of the closing of a business cycle in Ceuta or Melilla that determines economic results will be required in order to apply the bonus. In the case of entities that form part of a group of companies, these amounts will be determined at the group level.

Income from wholesale trade will also be deemed to be obtained in Ceuta or Melilla when this activity is organized, directed, contracted and invoiced through a fixed place of business located in said territories that has the necessary material and personnel means for this.

In order to determine the income attributable to Ceuta and Melilla in the case of fishing and maritime navigation entities, the criteria and percentages specifically established in sections 4 and 5 of article 33 of the Corporate Income Tax Law must be taken into account.

Spanish entities domiciled for tax purposes in Ceuta and Melilla that have their effective management headquarters in said territories, as well as foreign entities not resident in Spain and that operate in Ceuta and Melilla through a permanent establishment that operate effectively and materially in said territories, for a period of no less than 3 years, may apply this bonus for income obtained outside said cities in tax periods that end after the aforementioned period has elapsed when at least half of their assets are located there. However, income from the leasing of real estate located outside of these territories is exempt from the provisions of this section.