The three instalments of the Corporate Tax must be paid within the first 20 days of the months of April, October and December.
These instalments can be paid by using one of the two following methods:
- Option a) the amount is 18% of the total tax liability of the last tax period.
- Option b) the amount is calculated by means of the following:
- For companies with a net turnover for the previous year of between €0 and €10,000,000: 17%
- For companies with a net turnover for the previous year of above €10,000,000: 24%
- Option b) will be mandatory for companies whose turnover exceeds the amount of €6 million in the twelve months before the date on which the tax periods begin.
- However, option b) might be an option (except for in the aforementioned case), in which case it must be requested in February (for firms whose business year coincides with the calendar year), and it will be used in the year when it is requested and the following years, until it is dropped.
- If option b) was requested in previous years and it is not required in the current year, the corresponding request to stop using the method must be presented in February (for companies whose business year coincides with the calendar year).
- Important: The special option for the method b) that has been created pursuant to the Royal Decree Law 15/2020 as a result of the COVID-19 pandemic is not maintained to calculate the payment instalments of 2021.
- Option b) is recommended for all companies that expect to have a significant decrease in the profits in 2021 compared to 2020, seeing as the payments on account for option a), are made according to the last Corporate Tax return filed. They might be companies that are going into liquidation or winding up, inactive companies or firms that are going to decrease their business activities considerably.
- If the company decides or it must submit form 036 to use option b) or stop using it, please inform us at the office.
