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Practical guide for completing census form 036

Split payment of corporate tax, option article 40.3 LIS

Corporate Tax payers must make a split payment in the first twenty calendar days of the months of April, October and December ##1## on account of the settlement corresponding to the tax period in progress on the 1st day of each of the indicated months.

The entities referred to in sections 4 (they will be taxed at the tax rate of 1 percent) and 5 (they will be taxed at the tax rate of zero percent) of article 29 of Law 27/2014 of November 27, BOE of the 28th, on Corporate Income Tax, shall not have to make the aforementioned split payment nor be obliged to file the corresponding declaration.

The basis for calculating the split payment:

  • It will be (article 40.2 of Law 27/2014) the full quota of the last tax period whose declaration deadline expired on the first day of the twenty calendar days referred to in the previous paragraph, reduced by the deductions and bonuses that apply to the taxpayer, as well as the withholdings and payments on account corresponding to it.

    When the last completed tax period is less than a year long, the proportional part of the tax rate from previous tax periods will also be taken into account, until a period of 12 months is completed.

    The amount of the split payment provided for in this case will be the result of applying the percentage of 18 percent to the base.

  • Split payments may also be made (article 40.3 of Law 27/2014) at the taxpayer's option (box 621 “High” and 642 “date”), on the part of the taxable base of the period of the first 3, 9 or 11 months of each calendar year determined according to the rules provided for in Law 27/2014.

    Taxpayers whose tax period does not coincide with the calendar year will make the fractional payment on the part of the tax base corresponding to the days elapsed from the beginning of the tax period until the day before the beginning of each of the periods of payment of the fractional payment. In these cases, the instalment payment is on account of the payment for the tax period in progress on the day before the beginning of each of the above-mentioned payment periods.

    For the option expressed through box 621 to be valid and produce effects , it must be exercised in the corresponding census declaration, during the month of February of the calendar year from which it must take effect, provided that the tax period to which the aforementioned option refers coincides with the calendar year. Otherwise, the option must be exercised in the corresponding census declaration, during the period of two months from the beginning of said tax period or within the period between the beginning of said tax period and the end of the period to make the first fractional payment corresponding to the aforementioned tax period when this last period is less than two months.

    Once the option has been made, the taxpayer will be bound to this modality of split payment with respect to the payments corresponding to the same tax period and the following ones, as long as it is not renounced to its application through the corresponding census declaration (box 621 "Withdrawal") which must be exercised within the same time periods mentioned in the previous paragraph.

    taxpayers whose net turnover exceeded 6 million euros during the 12 months prior to the date on which the tax period to which the instalment payment corresponds begins will be required to apply this modality.

    The amount of the split payment provided for in this section will be the result of applying to the base the percentage resulting from multiplying the tax rate by five-sevenths rounded down. The discounts applicable to the taxpayer will be deducted from the resulting amount, along with the withholdings or income on account payed on the taxpayer's income, and payment instalments made that correspond with the tax period.

Companies that have opted to apply the special regime established in Law 11/2009, of October 26, which regulates Listed Public Limited Companies for Investment in the Real Estate Market ( SOCIMI ) are required to make fractional payments in accordance with the method established in section 2 of article 40 of the Corporate Tax Law.

It should be noted in relation to the special tax regime regulated by Law 11/2009, of October 26, on Listed Investment Companies in the Real Estate Market, that the option for the application of this voluntary regime must be adopted by the general meeting of shareholders and must be communicated to the Delegation of the State Tax Administration Agency of the tax domicile of the entity, before the last three months prior to the conclusion of the tax period. Any communication made outside this period will prevent this tax regime from being applied in said tax period. The special tax regime will apply in the tax period that ends after said communication and in the successive periods that end before the renunciation of the regime is communicated. The option to apply the regime established in this Law is incompatible with the application of any of the special regimes provided for in Title VII of the Revised Text of the Corporate Tax Law, approved by Royal Legislative Decree 4/2004, of March 5, except for that of mergers, spin-offs, contributions of assets, exchange of securities and change of registered office of a European Company or a European Cooperative Society from one Member State to another of the European Union, that of international tax transparency and that of certain financial leasing contracts.