4.1 Tax period and accrual
The tax period of IS coincides with the financial year of each entity, and cannot exceed 12 months . The closing date of the financial or social year is determined in the statutes of the companies. Failing that, it ends on December 31 of each year. The IS accrues on the last day of the tax period.
Even if the financial year has not ended, the tax period is considered concluded in the following cases:
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When an organisation ceases to exist.
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When the residence of the entity changes, from Spanish territory to abroad.
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When the legal form of the entity is transformed and this determines that the resulting entity is not subject to IS .
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When there is a transformation of the legal form of the entity or the modification of its statute or its legal regime, and this determines the modification of the tax rate in IS or the application of a different tax regime in the resulting entity.