4.3 Type of tax and total rate
The tax rate is the percentage that, when multiplied by BI allows you to obtain the full amount. The result can be positive (when BI is positive) or zero ( BI zero or negative).
The applicable tax rates are as follows, for tax periods beginning on or after January 1, 2025:
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General tax type: 25%.
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Small entities (article 101 of Law 27/2014):
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Final regime : 20%.
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Transitional regime:
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tax periods beginning within year 2025: 24%.
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tax periods beginning within year 2026: 23%.
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tax periods beginning within year 2027: 22%.
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tax periods beginning within year 2028: 21%.
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Micro-enterprises (companies whose INCN of the immediately preceding tax period is less than 1 million euros):
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definitive regime:
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For the part of taxable base between €0 and €50,000 , at the rate of 17%.
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For the remaining tax base , at the rate of 20%.
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Transitional regime:
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tax periods beginning within the year 2025:
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For the portion of the taxable base between €0 and €50,000, at the rate of 21% .
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For the remaining part of the tax base, at the rate of 22%.
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tax periods beginning within the year 2026:
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For the portion of the taxable base between €0 and €50,000, at the of %.
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For the remaining part of the tax base, at the rate of 21%.
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Newly created entities that carry out economic activities: 15% in the first tax period in which the tax base is positive and in the following one.
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1## Cooperatives 1## ## ## that are fiscally protected 2## ## ## will pay tax on cooperative results at the tax rates resulting from reducing by three percentage points the tax rates provided for in the first section of article 29 of the LIS (25, 20, 17 and 15%, as appropriate) provided that the resulting rate does not exceed 20% . The rates provided for in section 1 of article 29 of the LIS will be applied to non-cooperative results.
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Credit cooperatives and rural banks shall be taxed at the tax rates provided for in section 1 of article 29 of Law 27/2014, except for non-cooperative results, which shall be taxed at a rate of 30% .
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Transitional regime for cooperatives: transitional regime provided for in the forty- transitional of Law 27/2014 shall apply to cooperative entities that considered micro-enterprises or small-sized entities.
- Startups: 15% in the first tax period in which, having the status of emerging company, the BI results in a positive result and in the following three.
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General insurance mutuals, social security entities, mutual guarantee societies, reinsurance societies of SGR , partially exempt entities, political parties, communities holding communal lands: 25%.
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Special types of tax, include:
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Credit institutions and entities dedicated to the exploration, research and exploitation of underground hydrocarbon deposits and storage (Law 34/1998): 30%.
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Non-profit entities that apply the tax regime provided for in Law 49/2002: 10 %.
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Entities covered by the Economic and Fiscal regime of the Canary Islands (ZEC – Canary Islands Special Zone): 4% for the part of the BI corresponding to operations actually carried out in the ZEC.
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Investment Companies and Funds, Bank Asset Funds, SICAV and Mortgage Market Regulation Funds: 1 %.
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Pension funds ( RD leg. 1/2002): 0%
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SOCIMI (Law 11/2009): 0%, except for dividends or profit shares distributed to partners with a stake in the entity greater than or equal to 5%, when such dividends at the headquarters of their partners are exempt or taxed at a rate lower than 10%, which are taxed at 19%.
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With effect for tax periods beginning on or after 1 January 2022 in Corporate Tax there is a minimum tax rate . Thus, taxpayers whose net turnover is at least €20 million during the 12 months prior to the start date of the tax period or who pay taxes under the special consolidation regime, regardless of their net turnover, the net tax rate may not be less than the result of applying 15% to the tax base, reduced or increased, where appropriate and as appropriate, by the levelling reserve, and reduced by the investment reserve (regulated in article 27 of Law 19/1994, of July 6, amending the Economic and Tax Regime of the Canary Islands). This quota will have the character of a minimum net quota.
The minimum net tax will not apply to investment companies and funds, bank asset funds, SICAV and mortgage market regulation funds, SOCIMI and pension funds, non-profit entities that apply the tax regime provided for in Law 49/2002 or to other entities that, in accordance with the LIS pay 1%.
For taxpayers who pay 15% as newly created entities, the minimum net tax will be 10% of their tax base.
For credit institutions, as well as entities engaged in the exploration, research, and exploitation of hydrocarbon deposits and underground storage facilities under the terms established in Law 34/1998, of October 7, on the hydrocarbon sector, the minimum net tax rate will be 18% of the taxable base.
With effect for tax periods commencing on or after 1 January 2025, for entities whose net turnover for the immediately preceding tax period is less than 1 million euros for the purposes of determining the minimum net tax rate, the percentage will be the result of multiplying the scale provided for in section 1 of article 29 of the LIS by fifteen twenty-fifths, rounded up.
In the case of small entities, the percentage indicated will be the result of multiplying the tax rate provided for in section 1 of article 29 of this law by fifteen twenty-fifths, rounded up.
In cooperative entities, the minimum net contribution may not be less than the result of applying 60% to the total contribution calculated in accordance with the provisions of Law 20/1990, of December 19, on the Tax Regime of Cooperatives.
In the entities of the Canary Islands Special Zone, the positive tax base on which the percentage is applied will not include the part of the same corresponding to the operations carried out materially and effectively in the geographical area of said Zone that are taxed at the special tax rate regulated in article 43 of Law 19/1994, of July 6, amending the Economic and Fiscal Regime of the Canary Islands.
Rules are established to determine the minimum net tax rate for corporate tax.