4. Corporation Tax

Corporate tax

The IS taxes the income of companies and certain entities resident in Spanish territory. As a general rule, taxpayers must file a IS declaration, even if they have not carried out activities during the tax period or have not obtained income subject to the tax, as long as its extinction has not occurred.

Entities in which any of the following requirements are met are residents in Spanish territory:

That they had been established in accordance with Spanish laws.
That they have their registered office in Spanish territory.
That they have their effective management headquarters in Spanish territory (when the direction and control of all their activities is located there).

Link to information and procedures of IS

In the Foral Community of Navarra and in the Historical Territories of the Autonomous Community of the Basque Country IS applies according to the Economic Agreement and Economic Agreement regime, respectively.

Taxpayers of IS are legal entities (except civil companies that do not have a commercial purpose) and certain entities, even if they do not have legal personality.

The following entities with their own legal personality are included, among others:

Commercial companies (anonymous, limited liability, collective, labor, etc.).
Civil companies with a commercial purpose are taxpayers under IS , since January 1, 2016. Civil societies that are dedicated to agricultural, livestock, forestry, mining and professional activities covered and that meet the requirements of Law 2/2007, on companies, will not be taxpayers for IS professionals, since they are outside the commercial field.
State, regional, provincial and local societies.
Cooperative societies.
Sole proprietorships.
Agrarian transformation companies.
Associations, foundations and institutions, both public and private, and public entities.
Economic interest groups (AIE).

They are also subject to IS ( without their own legal personality ) :

Temporary business unions (UTE).
The funds of: pensions, investment, risk capital, regulation of the mortgage market, securitization, investment guarantee and banking assets.
The communities of holders of neighboring forests in common hands.
Entities under the income attribution regime of Spanish nationality in general are not taxpayers of IS , however, Royal Decree Law 18/2022, of October 18, which modifies the art. 6.2 of the LIS establishes that these entities, exceptionally in certain cases and for the following positive incomes, will be taxpayers of the IS :
- Income obtained in Spanish territory that is subject to and exempt from non-resident income tax.
- Income from a foreign source that is not subject to or exempt from taxation by a tax imposed by the country or territory of the entity or entities paying such income.

They are not taxpayers of IS and are taxed in the income attribution regime :

Certain entities without legal personality; existing inheritances, communities of property, etc.
Civil companies without legal personality and civil companies with legal personality but that do not have a commercial purpose.

Civil societies that are dedicated to agricultural, livestock, forestry, mining and professional activities covered and that meet the requirements of Law 2/2007, on companies, will not be taxpayers for IS professionals, since they are outside the commercial field.
Irregular societies and societies in formation.

The income obtained by the entities in the income attribution regime is attributed to the partners, heirs, community members or participants, although the obtaining of income is materially carried out by the entity itself, which is also a taxpayer for the IAE and for VAT .

Obligation to report

As a general rule, taxpayers must submit a IS declaration, however, there are exceptions to the obligation to declare.

In particular, they enjoy total exemption and are not required to declare certain public sector entities (State, CC. AA. , Local Entities and their autonomous bodies, managing entities and common services of Social Security, Bank of Spain, Deposit Guarantee Funds of Credit Institutions and Investment Guarantee Funds, etc.). The total exemption means that such entities are relieved of the obligation to present self-assessment by IS ; compliance with accounting and registration requirements; to register in the entity index; and bear withholding for the income they obtain.

Other entities are partially exempt: non-profit, charitable or public utility entities and institutions, non-governmental organizations, professional associations, business associations, official chambers, unions, political parties, etc.). Without prejudice to the regime of foundations and non-profit entities regulated by Law 49/2002 and that of political parties regulated in Organic Law 6/2002, it is regulated in Law 27/2014, on Corporate Tax, the special partial exemption regime.