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¿What are the main features of the corporate income tax regime?
The Spanish tax system is modern and competitive. Within the framework of economic globalization, the Spanish tax system has undergone a series of reforms designed to increase the competitive advantage of foreign companies that begin operations in Spain.
Corporate Tax Law 43/1995, Non-Residents Income Tax Law 41/1998 and Directive 537/97 are the main regulations.
In June 2000, Royal Decree/Law 3/2000 included a series of measures to affect favorably the tax-paying status of small and medium enterprises (SMEs) as well as innovative firms.
The key factor in determining the application of corporate income tax is "residence". A company is deemed to be resident in Spain for tax purposes if it meets any of the following conditions:
- That it was incorporated under Spanish law.
- That its registered office is located in Spain.
- That its effective management headquarters are in Spain.
Source and more information in http://www.investinspain.org (The Spanish Investment Promotion Agency):
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