In short, companies whose fiscal year coincides with the calendar year will have to start thinking about its preparation, if they have not done it yet, as their filing deadline shall end on July 25. The Order that approves 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 been published. It applies to fiscal years initiated between January 01 and December 31, 2017.

 

This Order will be in force as from July 01, 2018 and it adapts 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 2017 and that affect tax periods starting in 2017.

 

In short, companies whose fiscal year coincides with the calendar year will have to start thinking about its preparation, if they have not done it yet, as their filing deadline shall end on July 25.

 

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

 

  • The possibility to deduct impairments as well as realized losses in the transfer of participated entities is eliminated, as long as these permit an exemption on the capital gains realized on their transfer or on the dividends they might distribute.
  • Losses on portfolio corresponding to entities tax resident in tax haven or low tax jurisdictions are not permitted.
  • Losses for the transfer of participated entities within a tax group are not allowed, either, even if they are subsequently transferred to third parties out of the group or if they leave this latter.
  • The limits to compensate negative tax losses as well as deferred tax assets increase to 70%, for taxpayers having a turnover lower than 20 million €. However, these limits are reduced to 50% and 25% for companies with a turnover in between 20 and 60 million and equal to or exceeding 60 million €, respectively.
  • The percentages, basis as well as limits of the tax credits for cultural events such as film productions or the exhibition of live musicals and arts performances are adapted to the new rates introduced by the Spanish 2017 General Budget Law.
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✔ The general term 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, 2018.

 

There are specific deadlines for certain situations such as, for example, when a permanent establishment ceases, as these must submit the tax return within the first 20 natural days of April, July, October or January depending on when did the cessation take place.

 

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 €.

 

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Publicado el 05-2018 por PBS