4.1 Tax period and accrual
The tax period of IS coincides with the financial year of each entity, and may not exceed 12 months . The closing date of the financial or social year is determined in the articles of association of the companies. Failing that, it ends on December 31st of each year. The IS is accrued on the last day of the tax period.
Even if the financial year has not ended, the tax period is deemed to have concluded in the following cases:
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When an organisation ceases to exist.
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When the entity's residence 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 in the legal form of the entity or a modification of its statute or legal regime, and this determines the modification of the tax rate in the IS or the application of a different tax regime in the resulting entity.