Corporate Tax (IS) is a tax that taxes the income of companies and other legal entities, resident throughout Spanish territory.

With FacturaDirecta, your business will have a professional invoicing system. Create an account.

Entities are residents in Spanish territory when they meet any of the following requirements:

• That they have been constituted according to Spanish laws.
• That they have their registered office in Spanish territory.
• That they have their place of effective management in Spanish territory (when the direction and control of all their activities is located there).

Corporate Tax taxpayers

Corporate Tax taxpayers are legal persons (except civil companies that do not have a commercial purpose) and certain entities, even if they do not have legal personality.

The following entities with their own legal personality are subject to tax, among others:

• Commercial companies (corporations, limited liability, collective, worker-owned, etc.).
• Civil companies with commercial purpose since January 1, 2016.
• State, regional, provincial and local companies.
• Cooperative companies.
• Single-member companies.
• Agricultural transformation companies.
• Associations, foundations and institutions, both public and private, and public entities.
• Economic interest groupings (AIE).

The following are also subject to Corporate Tax (without their own legal personality):

• Temporary business unions (UTE).
• Funds for: pensions, investment, venture capital, mortgage market regulation, securitization, investment guarantee and banking assets.
• Communities of owners of communal neighboring forests.

Corporate Tax period

The tax period of Corporate Tax coincides with the economic year of each entity, and cannot exceed 12 months. The closing date of the economic or social year is determined in the company’s bylaws. Otherwise, it ends on December 31 of each year. Corporate Tax accrues on the last day of the tax period.

Although the economic year has not ended, the tax period is considered concluded in the following cases:

• When the entity is dissolved (cancellation entry of the company in the Commercial Registry).

• When the entity changes residence from Spanish territory abroad.

• When the legal form of the entity is transformed and this determines the non-subjection to Corporate Tax of the resulting entity.

• When there is a modification of the statute or legal regime of the entity, and in both cases it determines the modification of the tax rate in Corporate Tax or the application of a different tax regime for the resulting entity (since January 1, 2015).

Corporate Tax rate

The tax rate is the percentage that multiplied by the Taxable Base (BI) allows obtaining the gross quota. The result can be positive (when the BI is positive) or zero (zero or negative BI).

The applicable tax rates are as follows, for tax periods starting from January 1, 2016:

• General tax rate: 25%.

• Special tax rates, notably:

  Small-sized entities: 25%.

  Fiscally protected cooperatives: 20% (extra-cooperative results will go to the general rate).

  New entities (except those that must pay at a lower rate), that carry out economic activities, in the first tax period in which the BI is positive and in the following one, will pay 15%.

  Non-profit entities that apply the tax regime provided for in Law 49/2002: 10%.

Corporate Tax taxable event

The Corporate Tax Law, in its article 4.1, establishes that the obtaining of income by the taxpayer, whatever its source or origin, shall constitute a taxable event.

FacturaDirecta is the best way to manage your invoicing.

We hope this information is very useful to you.