What is the Corporate Income Tax Installment Payment?

It is the division of the Corporate Income Tax which is divided into three payments, being these from April 1 to 20, October and December the 3 payment terms.

How can I calculate the Corporate Income Tax Installment Payment?

This can be calculated using two systems:

• The installment method, calculating 18% on the last full amount of the last Corporate Income Tax filed. This model is the fractioned model according to the modality regulated in article 40.2 LIS of the Tax Agency.
• The basis method, with this method we calculate a % of the taxable base of the current year, adjusting the withholdings and installment payments already made. These percentages are based on the turnover of the previous year, being the rates:
  

  

  • < 1.000.000 € = 15 %
  • Between 1,000,000 and 10,000,000 = 17%.
  • > 10.000.000 = 24 %

In which cases is the basis method used in the Corporate Income Tax Installment Payment?

Mandatory cases

In cases of companies with a turnover exceeding 6 million euros in the year prior to the beginning of the tax periods.

Optional cases

It can be optional in other cases except for the previous one, it must be requested during the month of February if the applicant entity has a fiscal year that coincides with the calendar year, being applied from the fiscal year in which it is requested, in case you want to waive this option because you are not interested in its application in the current year, you must submit the waiver during the month of February, again, if the applicant entity has a fiscal year that coincides with the calendar year.

When would it be better to request this method in the Corporate Income Tax Installment Payment?

It is especially better for companies that foresee a significant reduction in profits during the fiscal year 2025 with respect to the previous year (2024), since if they decide to make the calculation using the installment method, this will be calculated with respect to the previous year. In this situation, there may be companies that are to be liquidated, inactive or that reduce their activity.

If you need to use the census form 036 to exercise or waive the method of bases, consider contacting us as soon as possible to assist you as soon as possible.