Changes in calculating partial payments corporate tax
On 30 September, it has been approved and published in the BOE the new system for calculating installment payments by Real Decreto-ley 2/2016 for some companies.
The innovations introduced are:
- Applies to partial payments to be made from 1st October 2016, this means the 2P (between 1st and 20th October) and the 3P (between 1st and 20th December).
- The new calculation system should apply those considered as “big” companies (net turnover above 6 million Euros) having a minimum of net turnover in the previous year of 10 million Euros.
- The tax rate is 24% on the taxable base (for the first payment was 17%).
- THE MINIMUM AMOUNT TO PAY, in general, is the 23% of THE ACCOUNTING PROFIT of the year.
All this assumes the following:
- This Income Tax pre-payment is close to the level of the effective income tax rate: 23.75% to 25% to be paid in July.
- It forces companies to pay attending their accounting profit and not their taxable income, thus, they cannot offset losses, nor apply tax incentives or adjustments to the taxable amount corresponding to the time of calculation of the instalment.
- This will mean that when the return is filed it will be possible that a huge amount of Income Tax have to be refunded.
- In obliges companies to finance the Spanish state to interest rate 0, depleting its cash (in some cases in significant amounts) and also has been approved in advance only 20 days before its obligation to deposit, that’s to say, without giving the opportunity to the companies to minimum period for financial planning.
- Advice: For the last instalment (to make between 1st and 20th December) payment is calculated on the amount of the previous 11 months, for the purpose of declaring the minimum accounting turnover and as a result the minimum possible accounting profit , if possible, pass all billing that you can to December.