OPTION FOR THE SPECIAL CALCULATION METHOD OF ADVANCE CORPORATE TAX

 

If the tax profit of your company has fallen sharply this year or if your company’s result in 2021 was much higher than usual, you might be interested in calculating the advance Corporate Tax 2022 according to the special method provided in article 40.3 of the Spanish Law No. 27/2014, of November 27th of 2014. ¹

Following this method, the taxable base of the advance payment is calculated on the tax profit of the first 3, 9 or 11 months of the year (instead of being calculated on the full amount of the results of the previous one).

The rate applied to this base will be 5/7 of the usual rate applicable to the Company. That is to say: if the taxable income of the company is usually subject to a 25%, the advance payment will be 18% of the calculation base; in case of a new company with a tax rate of 15%, the advance payment will be 11% of the calculation base.

Option for the special calculation method

It is important to remember that the option for this calculation method must be explicitly requested by filling in the boxes No. 133, 621 and 642 of the Spanish tax form No. 036.

This option must be requested during the month of February 2022.

In any case, the advance payment must be done by submitting a form 202 within the first 20 calendar days of the months of April, October and December. ^{2 3}

Those companies whose base results from the installment payment turn out to be negative are not required to file the form 202.

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1Spanish Corporate Tax Law.

2In case of a group of companies it is to use the Spanish tax form is No. 222.

3If the company fiscal year did not coincide with the natural year, the advance payment would be done within the first 20 days of the 3rd, 6th and 9th months of the company fiscal year.