GuillermoRosés SRLU

Corporation Tax is payable on the earnings of companies and other legal entities resident in Spain.

Residence in Spain determines whether Corporation Tax is payable in Spain. Entities that meet one of the following requirements are deemed to be resident in Spain:

*     They were formed in accordance with Spanish law.

*     They have their registered office in Spanish territory.

*     They have their effective place of business in Spanish territory. For these purposes an entity will be deemed to have its effective place of business in Spanish territory if all of its activities are managed and controlled from Spanish territory.

The taxpayer’s domicile for tax purposes will be the address of its registered office, provided that the administrative management and control of its business are effectively centralised at that address. If they are not, the domicile will be the address from which the business is actually managed or controlled.

In cases where it is not possible to establish the tax domicile using the criteria set out above, the address at which the taxpayer has its highest-value fixed assets will be used.

All taxpayers who are liable to pay Corporation Tax must file a return, regardless of whether or not they have traded during the tax period and whether or not they have obtained income that is liable to Corporation Tax.

The tax period to which the Corporation Tax return has to refer coincides with the entity’s financial year. Even if the financial year has not ended, the tax period is deemed to have come to an end in the following cases:

a) If the entity ceases to exist. An entity is deemed to have ceased to exist where its entry on the Commercial Register has been cancelled.

b) If the resident entity changes its residence from Spanish territory to another country.

c) If the legal form of the entity is changed and the resulting entity is not liable to pay Corporation Tax.

d) If the legal form of the entity is changed and this means that there is a change to its rate of tax or the application of a special tax regime.

In no case may the tax period exceed 12 months.

Corporation Tax is payable on the last day of the tax period.

The tax return must be filed within the 25 calendar days following the end of the six month period after the end of the tax period.