In order to calculate the Quota of any other year, the first step in to update the Net Quota of the base year. In the chart, the calculation for the year 2008, second of the five year period, is presented.

13. Updating index

As laid down in the Quota Law, the updating index in a particular year is the quotient between expected revenues from taxes covered by the Economic Agreement, (excluding those transferred in their entirety to the Autonomous Communities of the Common Territory) for the tax year to which the net quota refers and the duly adjusted revenues expected by the State for the same tax items in the base year of the five-year period. In other words, the updating index is the income growing rate obtained by the State as a result of the taxes which in the Autonomous Community of the Basque Country are collected by the Historical Territories: the Personal Income Tax, the Corporate Income Tax, the Tax on income of non-residents, the Value Added Tax, the Excise Duties and the Tax on Insurance Premiums.

14. Updated net quota (=Updated Base Quota)

It is obtained by multiplying the net quota of the base year by the updating index.

15. Net amount payable

Once the provisional net quota is obtained, compensations in the quota amount corresponding to the particular year shall be made in order to obtain the payable net amount.

end faq