Criteria applicable for filing split payments of Corporation Tax since the modification of the Economic Agreement with the Basque Country

CRITERIA FOR DETERMINING THE REGULATION APPLICABLE FOR CORPORATE TAX PURPOSES SINCE THE MODIFICATION OF THE ECONOMIC AGREEMENT WITH THE BASQUE COUNTRY

CORPORATION TAX REGULATION ECONOMIC AGREEMENT

TAX ADDRESS

PRIOR YEAR'S BUSINESS VOLUME

POWERS OF INSPECTION

Basque Country   ≤ €10 MILL

Regional regulations of the Basque Country

  > €10 MILL

Regional regulations of the Basque Country,

unless 75% or more of trading was in joint territory the previous year, in which case state regulation applies

Navarre   ≤ €7 MILL

Navarra regional regulations

  > €7 MILL

Navarra regional regulations,

unless 75% or more of trading was in joint territory the previous year, in which case state regulation applies

Joint Territory   ≤ €7 MILL

National regulations

  > €7 MILL ≤ €10 MILL

State regulations,

unless 100% of trading is in Navarra, in which case Navarra regional regulations apply

> €10 MILL

State regulations, unless:

- 75% or more of its trading, or 100% for tax groups, in the prior year was in the Basque Country, in which case Basque Country regulations apply

- 100% of trading is in Navarra, in which case the Navarra regional regulations apply

CRITERIA APPLICABLE FOR SPLIT PAYMENTS OF CORPORATION TAX SINCE THE MODIFICATION OF THE ECONOMIC AGREEMENT WITH THE BASQUE COUNTRY

Taxpayers required to apply the state regulations in accordance with the criteria set forth in the table above, must deposit split payments of Corporation Tax according to the following criteria:

LEVYING OF SPLIT PAYMENTS OF CORPORATION TAX - REGIONAL AGREEMENT

LEVYING ECONOMIC AGREEMENT

TAX ADDRESS

VOLUME OF BUSINESS PRIOR YEAR AND PERCENTAGE CARRIED OUT IN EACH TERRITORY

TAX PAYMENT
Basque Country > €10 MILL and 75% or more of trading is in joint territory

In proportion to the volume of operations in each territory

Navarre > €7 MILL ≤ €10 MILL, and 75% or more of trading is in joint territory

SPANISH TAX AGENCY and Navarra Regional Tax Authority: Navarra Regional Tax Authority levying (% trading in Navarra), Spanish Tax Agency levying (% trading in the joint territory and the Basque Country)

> €10 MILL, and 75% or more of its trading in the joint territory

In proportion to the volume of operations in each territory

Joint Territory ≤ €7 MILL

AEAT (Tax Agency)

> €7 MILL ≤ €10 MILL, unless 100% of trading is in Navarra

SPANISH TAX AGENCY and Navarra Regional Tax Authority: Navarra Regional Tax Authority levying (% trading in Navarra), Spanish Tax Agency levying (% trading in the joint territory and the Basque Country)

> €10 MILL, unless 75% or more of its trading is in the Basque Country (100% in the case of tax groups) or 100% in Navarra

In proportion to the volume of operations in each territory