A new 2018 Spanish Corporate income tax season has arrived

As in every year, the approval of the new tax forms to file Corporate income tax returns applying to Spanish tax resident entities as well as to non – resident entities operating with Spanish permanent establishment has just arrived.

These new regulations will be in force as from July 01, 2019, applying to fiscal years initiated between January 01 and December 31, 2018 and they adapt the tax forms (200 for stand – alone tax returns and 220 for groups under the tax consolidation scheme) to the new tax rules passed throughout 2018 and that affect tax periods starting in 2018.

Given their great importance, we summarise below their main features

✔ We highlight the following tax measures included in the new tax forms:

• The tax changes applying to the incentive for the reduction on income deriving from certain intangible asset, due to the adaptation of Spanish rules to the agreements reached within the EU and the OECD organization, such as the exclusion from this tax relief of “know – how” income.
• A new case of non – deductible expense, applying to tax periods starting from the 10th November 2018, with respect to the Stamp duty tax debt deriving from loans guaranteed with mortgages, when the taxpayer is the lender.
• Other changes affect the regulation of patronage activities to be considered of a priority nature and the events to be considered of exceptional public interest as well as changes on the incentives for investments made in the Canary Islands

✔ In relation to the Form 200 tax return fulfilment, the PADIS program is no longer available as from July 1st 2019, as the tax return must be completed online (“Sociedades Web”), in order to simplify the taxpayers’ filing process.

✔ The general term (despite specific deadlines) to file the tax return is during the 25 days following the six months after the fiscal year closing. If companies having a fiscal year coinciding with the calendar year want to pay the tax due through direct bank debit, the deadline ends on July 20, 2019.

✔ Please remember that, in all cases, it is mandatory to submit the tax return electronically, together with additional information that is required when, for example, the taxpayer has tax credits or negative book to tax adjustments equal to or exceeding 50,000.00 €.