Corporate Income Tax, Modelo 200 and Who Needs to File?

Learn about Corporate Income Tax, Modelo 200, who needs to file it, and how to calculate it in Spain. Essential info for Spanish businesses to stay compliant.

Modelo 200 is a tax form used for declaring Corporate Income Tax (IS) in Spain. This tax applies to the profits companies make during a fiscal year, which usually aligns with the calendar year. If your business is based in Spain and has legal personality, you are required to file this form with the Inland Revenue.

Who Must File Modelo 200?

  • Commercial Companies: Including Public Limited Companies (SA), Limited Liability Companies (SL), and others.
  • State, Regional, and Local Companies
  • Economic Interest Groupings
  • Real Estate Investment Funds (FII)
  • Temporary Joint Ventures
  • Venture Capital Funds (VC)
  • Pension Funds

Partially Exempt Entities

Certain non-profit entities, such as unions, federations, professional associations, official chambers, and workers’ unions, are partially exempt if they meet these conditions:

  • Total income does not exceed €100,000 per year.
  • Income from non-exempt sources subject to withholding does not exceed €2,000 per year.
  • All non-exempt income is subject to withholding.

Exempt Entities

Entities like the state, autonomous communities, local entities, the Bank of Spain, and others are fully exempt from filing Corporate Income Tax.

How to Fill in Modelo 200

To complete Modelo 200, you will need the following information:

  • Company identification details
  • Tax period
  • Type of financial year
  • CNAE code (National Classification of Economic Activities)

Steps to Calculate Corporate Income Tax

  1. Determine the Taxable Base:
    • Start with the accounting profit before tax.
    • Adjust this profit with non-deductible items and tax benefits to get the tax base.
  2. Apply the Tax Rate:
  1. The general tax rate in Spain is 25%.
  2. For companies with income less than €1 million, the tax rate is reduced to 23%.
  3. Calculate the Total Tax Liability:
  4. Multiply the taxable income by the tax rate to get the total tax liability.
  5. Apply Deductions and Allowances:
  6. Subtract any applicable deductions for activities like R&D or investments from the total tax liability.
  7. Obtain the Net Tax Liability:
  8. The net tax liability is the total tax payable minus deductions.
  9. Adjust for Withholdings and Payments on Account:
  10. If your company made withholdings or payments on account during the year, adjust them against the net tax liability.
  11. Final Result:
  1. If the adjusted amount is positive, your company must pay the tax.
  2. If it is negative, your company is entitled to a refund.

By understanding and following these steps, you can ensure your company meets its tax obligations correctly. If you need further assistance, Rosenov & Quintero Accountants in Lanzarote are here to help.

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