Compliance with tax and accounting obligations is crucial for any company operating in Spain. Two of the main responsibilities are filing corporate tax returns and preparing annual accounts, interrelated obligations that reflect the company’s economic and financial situation before the Tax Authorities and the Commercial Registry.
This article provides a practical and up-to-date guide for companies subject to Spanish state regulations.
What is corporation tax?
Definition and purpose
Corporation tax is a state tax levied on the income of legal persons and other entities. It is based on the profits made in a tax period and its purpose is to contribute to the financing of public services.
Taxpayers
The following are liable to pay tax:
- Public limited companies, limited liability companies and other legal entities.
- Associations, foundations and non-profit organisations.
- Foreign entities with a permanent establishment in Spain.
Tax rates
- 25% general.
- 15% during the first two financial years for new companies with a positive tax base.
- 20% for tax-protected cooperatives.
- 10% for entities covered by Law 49/2002.
Installment payments
Companies must make installment payments on account of the tax using Form 202 in April, October and December.
Filing of corporation tax
Forms
- Form 200: general return.
- Form 220: for tax groups.
Filing deadline
It must be filed within 25 calendar days after the end of the six-month period following the end of the financial year. If the financial year ends on 31 December, the deadline is from 1 to 25 July.
Annual accounts and their relationship with tax
Accounting and tax function
The annual accounts allow the tax base to be calculated from the tax-adjusted accounting result.
Required documentation
- Balance sheet.
- Profit and loss account.
- Statement of changes in net equity.
- Cash flow statement (for large companies).
- Explanatory notes.
Preparation and presentation of annual accounts
Deadlines
- Formulation: 3 months from the end of the financial year.
- Approval: up to 6 months from the end of the financial year.
- Filing: within one month of approval.
Commercial Registry
The accounts must be filed with the Commercial Registry of the corresponding province. Failure to file may result in administrative penalties and registration blocking.
Consequences of non-compliance
- Financial penalties (up to €60,000).
- Surcharges and interest for late payment.
- Loss of access to credit and business credibility.
Recommendations
- Keep your accounts up to date and in accordance with the General Accounting Plan.
- Carry out regular accounting closures.
- Seek specialised tax advice.
Do you need help with corporate tax or preparing your annual accounts? Our team of tax and accounting experts is ready to advise you and ensure strict compliance with your legal obligations. Avoid penalties and ensure transparency for your company. Contact us today for a personalised consultation.