SANTA CRUZ DE TENERIFE, July 12. (EUROPE PRESS) –
The Government Council of the Canary Islands reported favorably this Tuesday on the bill proposed by the Canarian Parliament before the Cortes Generales to give a new wording to the Law of the Economic and Fiscal Regime (REF) regarding triangular or trading operations of the entities registered in the Canary Islands Special Zone (ZEC) and that they be allowed to pay taxes at the rate of 4% in Corporation Tax.
The favorable opinion of the Executive to the modification of section 1.a of article 44 of Law 19/1994 of the REF is based on a report prepared by the Ministry of Finance, Budgets and European Affairs, which indicates the ” timeliness” and “legality” of the proposed law, although the need for it to be given retroactive effects is pointed out, so that all entities authorized by the ZEC that have carried out commercial operations without the merchandise having passed for the Canary Islands
The report reiterates that “the basic thing is the real use of personal and human resources located in the Canary Islands, regardless of whether or not the goods are located in the Canary Islands at the time they are made available to the purchaser or the beginning of their transport for making it available”, collects a note from the Presidency of the Government.
In the Government’s opinion, –meeting in an extraordinary session– the draft bill clearly offers legal certainty not only to the passive subjects of the tax legal relationship, the taxpayers, but also to the active subject, the State Tax Administration Agency.
The parliamentary initiative responds to a report from the State General Directorate of Taxes, which denied the possibility for these triangular trade companies to pay 4% in Corporate Tax even with the authorization of the Canary Islands Special Zone, where they were registered. .
The Executive’s report also states that “since it is a proposed reform of the Corporation Tax, a tax whose application and collection correspond entirely to the State, the Bill has no impact on the budget credits or on the income of this Autonomous Community, for which agreement is expressed regarding the taking into consideration and processing of the initiative”.