The tax year in Spain is the calendar year, 1 January to 31 December. Alternative tax years may be allowed.
The tax return must be filed in electronic form either by the taxpayer itself or through a duly authorized intermediary. The tax return must be filed within 25 days after six months following the end of the tax year.
During the year, taxpayers must make three tax payments in advance, due respectively on 20 April, 20 October, and 20 December. Companies whose tax year coincides with the calendar year are required to submit the final return in July.
For the October and December payments, for 2016 and subsequent years, new advance tax payment requirements apply for companies with turnover in excess of EUR 10 million in the previous year at the following rates:
- A 23% minimum rate on the accounting profits for the periods ending 31 March, 30 September and 30 November (25% rate for financial institutions and companies engaged in the exploration and exploitation of hydrocarbons); or
- A 24% rate on the current tax base for the periods ending 31 March, 30 September and 30 November.
Certain income is excluded from the minimum payment base, including income derived from debt-reductions from bankruptcy proceedings, the capitalization of credits, and the exempt income derived by non-profit organizations. In addition, the requirements do not apply to entities eligible for special reduced rates, such as Spanish REITs, collective investment vehicles, pension funds, etc.
For companies with turnover exceeding EUR 6 million but not exceeding EUR 10 million, a 17% rate on the current tax base for the three periods applies for advance payments. For smaller companies having a turnover less than EUR 6 million, an 18% rate based on the previous year's tax liability applies, although smaller companies may also opt for the 17% rate on the current tax base.
On 1 July 2020, Spain's Constitutional Court held that the increased advanced tax payment for large companies is unconstitutional. Accordingly, the increased advance tax payment requirements have been declared null and void, except for cases that have already been adjudicated or in cases that have been consolidated in the administrative stage that have not been formally appealed within time limits.