Tax obligations Q4 2024

Below we highlight a series of tax obligations to be taken into account during the month of December, which, in short, are the following:

Corporate Income Tax Advance Payments 2024.
Local business tax (IAE).
Immediate Information Supply (IIS).
Country by country information (form 231).

Please find the corresponding content mentioned below.

Corporate Income Tax Advance Payments

Please note that December 20^th, 2024, is the deadline for filing forms 202 (general regime/large enterprises) and 222 (tax consolidation regime) regarding the third advance payment on account of Corporate Income Tax (CIT) 2024. Tax groups and large enterprises must file this return (forms 222 and 202, respectively) even when there is no tax payable.

The following points should be considered when calculating the advance payments for Corporate Income Tax:

1.Entities with net turnover not exceeding EUR 6 million in the 12 months prior to the start of the reporting period:

The advance payment calculation is based on the gross tax chargeable (box 599) on the last CIT return filed. The amount in this box should be multiplied by 18%.

2.Entities with turnover of over EUR 6 million and under EUR 10 million in the 12 months prior to the start of the reporting period, or those that have opted to calculate advance payments based on their current period’s taxable income:

The advance payment is calculated on the taxable income for the period from the start of the entity’s financial year to November 30^th, 2024. Deductible amounts include the offsetting of tax loss carryforwards from prior periods, credits, withholdings, and payments on account on income, and any advance payments already made for the current reporting period.

The prescribed percentage is the product of multiplying the tax rate by 5/7 and rounding down. For example, companies taxed at the general rate of 25% will apply a percentage of 17%.

3. Entities with turnover of at least EUR 10 million in the 12 months prior to the start of the reporting period:

The advance payment is calculated as above, with the following additional considerations:

The minimum payable amount is 23% of the accounting profit for the period from the start of the entity’s financial year to November 30^th, 2024 (the accounting profit figure used may only be reduced by subtracting any advance payments already made corresponding to the same reporting period). For credit institutions and those engaged in the exploitation of hydrocarbon deposits, the minimum advance payment will be 25 percent of the positive accounting result.
The prescribed percentage is 24% – the product of multiplying 25% by 19/20 and rounding up.

The table below summarizes the different methods of advance payment:

The deadline for submitting the installment payment of Corporate Tax, using direct debit as payment method, ends on December 17.

Offsetting of tax loss carryforwards

Please note that there are limits on the tax losses which may be offset, with implications for the advance payments, depending on the entity’s turnover in the prior period. In any event, tax losses of up to EUR 1 million may be offset, except for particular cases.

Local Business Tax (IAE)

Regarding the Local Business Tax, the corresponding Tax Administration must be notified if there are any changes in taxation from 1^st of January 2025, such as, for example:

End of the exemption period for the first two years of exercise of an activity.

Loss of tax exemption, due to exceeding the threshold of EUR 1 million net amount of turnover in the last Corporate Income Tax filed before January 1^st, 2025.

Likewise, during the month of December, the obligation to declare the variations in the tax elements of the tax (square meters of the premises affected, cadastral value of leased properties, installed KW, etc.), which have not been communicated at the time of said modification, must also be considered so that they take effect as of January 1^st, 2025.

Immediate Information Supply (IIS)

We would like to remind you that those entities that obtain the status of Large Company as of 2025 (i.e., those that have had a turnover, during the financial year 2024, of over EUR 6 million) will be automatically included in the Immediate Information Supply system and will be obliged to keep the VAT registry books through the Tax Agency’s electronic headquarters as of January 1^st 2025, and the change of such condition (large company) should be informed through the Form 036 during January 2025.

The general deadline for submitting this data to the Tax Agency is 4 working days from the date of issue of the invoices and, in the case of invoices received, from the date of accounting record.

Likewise, until 31^st December 2024, those entities that for any reason have been included in the SII system (for example, have requested their inclusion in the Monthly Refund Register -REDEME) during 2024, must send the invoicing records for the previous period corresponding to the same calendar year 2024.

Country-by-Country Information (Form 231)

The Corporate Income Tax Regulations include the obligation to provide so-called “country-by-country” information.

The “country-by-country” information must be submitted annually using form 231 approved for this purpose. The deadline for submitting the “country-by-country” information is twelve months by the end of the tax period.

This return is mandatory for those taxpayers who are part of a group whose net turnover of all persons or entities is at least EUR 750 million in the 12 months prior to the start of the tax period.

Thus, entities resident in Spanish territory that are the parent of a group and are not at the same time subsidiaries of another entity, whether resident or non-resident, must provide the information on a country-by-country basis using form 231.

In addition, it is important to bear in mind that, in accordance with the provisions of the Corporate Income Tax Regulations, any entity resident in Spanish territory that forms part of a group obliged to submit the “country-by-country” information must notify the tax authorities of the identification and the country or territory of residence of the entity obliged to prepare this information. This communication must be made before the end of the tax period to which the information relates.

Country-by-country information shall include, in respect of the tax period of the parent entity, on an aggregate basis, for each country or jurisdiction the following:

Gross income of the group, distinguishing between those obtained with related entities or with third parties.
Results before Corporate Income Tax or taxes of an identical or similar nature.
Corporate Income Taxes or taxes of the identical or similar nature paid, including withholdings made.
Corporate Income Taxes or taxes of an identical or similar nature accrued, including withholdings.
Amount of the capital and other equity figure existing at the end of the tax period.
Average number of employees.
Tangible assets and investment property other than cash and receivables.
List of resident entities, including permanent establishments and principal activities carried out by each of them.
Other information considered relevant and an explanation, where appropriate, of the data included in the information.

If you have any questions, please do not hesitate to get in touch with your regular contact person in our firm.