Corporate tax
Corporate tax is a tax on income. The taxable base is the company’s net income (benefits), and the tax rate is a fixed 25%, levied annually.
Note: The tax office levies a 15% tax rate on new companies only for the first two years that they have profits.
Corporate tax advance payment
The annual corporate tax is calculated on the profit of the whole year. The tax is paid in the following year, so it is called “declaración anual” (annual tax return).
The annual corporate tax for 2022 has to be filed by July 25, 2023.
Since the annual return is filed once a year and the tax office does not want to wait until the following year to receive the money, an advance payment regime system is provided.
The prepayment system means that the company pays some taxes in advance, on time, and then pays more or less when the annual tax return is filed the following year.
The Corporate Tax Law requires companies to make three advance payments in April, October and December each year, durging the first 20 days of such months.
How much do I have to pay?
By default, the amount to be paid in advance is 18% of the tax paid in the previous year. If you are a new company, or if you did not make a profit in the previous year, the amount to be declared is 0.
Example: The tax paid in July 2022 was €10,000, so in December 2022 you will need to make a prepayment of €1800.
How do I declare the corporate tax prepayment?
The official form of the tax office is Modelo 202.
