Keys to corporate income tax 2025: a practical guide for SMEs in Malaga
Corporate Income Tax (IS) is one of the pillars of taxation for SMEs in Malaga and Andalusia. With the entry of 2025, there have been new developments that will affect both the applicable deductions and the tax planning of small and medium-sized companies.
At Tecem Abogados y Asesores, we explain in a clear way what the IS is, its current tax rates, the relevant changes in 2025 and how you can optimize your tax burden with proper tax planning.
Who is obliged to file corporate income tax in 2025? Essential part of the keys to corporate income tax
All commercial companies resident in Spain are obliged to file this tax, including:
- Limited Liability Companies (SL).
- Corporations (SA).
- Cooperative Societies.
- Associations and foundations with economic activity.
In addition, some partially exempt entities must also file IS if they obtain income subject to tax, even if they have not had significant activity during the year.
Tax rates in effect in 2025
For 2025, the applicable rates for SMEs in Malaga are maintained:
- 15% for newly created entities during the first two fiscal years with positive taxable income.
- 23% for SMEs with a turnover of less than 1 million euros.
- 25% general rate for the rest of the companies.
These rates are a key tax planning tool, and their correct use depends on a detailed analysis of the accounts and the corporate structure.
Relevant corporate income tax developments in 2025
In 2025, modifications have been introduced in deductions and special regimes that affect SMEs in Malaga:
Deduction for R&D&I and digitalization
SMEs that invest in innovation or digitalization will be able to benefit from:
- Deductions of up to 42% in R&D&I activities.
- Deductions of 12% in investments for the digitalization of production processes.
This is key for those SMEs that are in the process of technological modernization or develop their own software.
Adjustments to reinvested earnings
The deduction regime for reinvestment of extraordinary profits is maintained, allowing a reduction in the tax burden when reinvesting in assets related to the economic activity, with specific conditions depending on the value of the investment and its maintenance period.
IS tax planning and optimization for SMEs
Corporate income tax calendar
The key dates for SMEs in Malaga are:
Until July 25, 2025: filing of IS Form 200.
Until October 20, 2025: payment of the second installment payment of IS (form 202).
Meeting deadlines avoids surcharges and penalties, in addition to allowing you to plan installment payments to optimize your company’s cash flow.
Common mistakes to avoid
At Tecem Abogados we frequently detect these errors in SMEs:
Failure to offset tax loss carryforwards from previous years.
Failure to apply deductions for domestic or international double taxation.
Failure to correctly identify deductible expenses, especially expenses that are difficult to justify.
A correct planning with our firm allows maximizing deductions and reducing the effective tax rate in a legal and safe way.
How does Tecem Abogados assist you in the management of Corporate Income Tax?
Personalized tax analysis
In Tecem Abogados we perform:
Review of the accounts to ensure that they correctly reflect the company’s reality.
Advance tax planning to reduce taxable income within the law.
Study of applicable deductions, special regimes and the optimal corporate structure.
Processing and representation before the AEAT (Tax Authorities)
We take care of:
- Prepare and file Form 200 and installment payments.
- Manage requirements and communications with the Tax Agency.
- Assistance in inspections and verification procedures.
This way, you can focus on your business while ensuring tax compliance with an optimization approach.
Tecem, your best legal support
Corporate Income Tax in 2025 is a key tax planning tool for SMEs in Malaga. Knowing the novelties, applicable rates and available deductions can make the difference between an efficient tax management and an unnecessary cost overrun.
At Tecem Abogados y Asesores, we help you to correctly file your IS, to optimize your taxation and to plan the future of your company with peace of mind and legal support.
If you would like a review of your tax situation for IS 2025, contact Tecem Abogados today.