Corporate income tax is levied on income earned by companies and residents for tax purposes in Spain. The tax rate is generally 25% (although it may be 15% for newly created entities and 23% for SMEs in some cases) and may be significantly reduced if certain tax incentives are applied, such as those related to research and development, innovation and job creation.

A disciplined and integrated approach to corporate tax requires experienced tax professionals who understand the various tax issues that businesses face.

Our knowledge of tax laws, processes and technologies and their impact on business is essential to achieve effective tax results for the company.

Corporate income tax in Spain includes several special regimes. For example, the regime for entities engaged in the leasing of housing, which allows a rebate in the taxable base provided that certain requirements are met.

One of the most significant tax incentives in corporate income tax is the partial exemption on the distribution of dividends: only 5% of the distributed dividends are taxed, which means an exemption of 95%, if certain conditions are met.

In addition, there are deductions that can reduce the tax burden, such as the deduction for Research and Development (R&D), Technological Innovation, investments in film productions, among others.

IS filing and installment payments

For companies whose fiscal year coincides with the calendar year (from January 1 to December 31), form 200 (Corporate Income Tax) must be filed before July 25 of the following year; on the other hand, form 202 is a declaration to make IS advances, thus avoiding having to pay everything in July. These advances will be considered in Form 200 and will be deducted from the total amount payable.

Form 202 for IS installment payments is filed three times a year: the first payment from April 1 to 20, the second payment from October 1 to 20 and the third payment from December 1 to 20.
The calculation of these payments can be made according to two methods regulated in articles 40.2 and 40.3 of the Corporate Income Tax Law.

Our Services

We advise our clients on all matters related to national and international taxation in Spain.

Services related to corporate taxes include:

• Corporate tax advice.
• Corporate income tax compliance.
• Transfer pricing.
• Fiscal reporting.
• Due diligence.
• Tax risk management.
• Tax opinions and consultation resolutions.
• Representation in tax audits.
• Tax litigation and mediation.

We can:

• Research and analyze your company’s tax situation, advise you in developing an effective tax strategy, or give you step-by-step instructions on how to properly resolve tax issues. If required, we can manage the implementation process and provide a full range of compliance services, including administration, corporate tax and VAT compliance.
• Take care of the entire process related to tax compliance as an integrated part of your company’s administration.
• Advise you on applicable national and international transfer pricing rules and assist you in complying with transfer pricing documentation and reporting requirements.
• Advise on the scope and level of financial risk and ways to reduce it. We help define an effective tax strategy that allows you to prevent, resolve, or reduce tax risks.
• Represent you during a tax audit, in negotiations with the tax inspector or in the event of a dispute or in the course of tax mediation.

If you are interested in our services, please contact us at our office, via email, or by phone.