4.8.1 Types of split payment

There are two ways to determine the basis for split payments.

1. Generally applicable modality, depending on the net quota of the last declaration.

   The split payment is calculated by applying 18% to the full amount of the last tax period whose regulatory declaration deadline expired on the first day of the 20 calendar days of the months of April, October or December reduced by the deductions and bonuses to which the taxpayer is entitled and by the withholdings and payments on account.

   If the result is zero or negative, there is no obligation to file the return.

   If the last tax period lasts less than a year, the proportional part of the quota from previous tax periods is also taken, until a period of 12 months is completed.

2. Optional modality (mandatory if the net amount of the turnover is greater than €6,000,000), depending on the taxable base of the year.

   The split payment is calculated on the BI of the period of the first 3, 9 or 11 months of each calendar year, deducting the bonuses, withholdings and payments on account made, as well as the split payments made.

   The following rules apply for calculating the split payment:

   • Taxpayer whose net turnover has not exceeded €10,000,000 during the 12 months prior to the date on which the tax period begins: the percentage to be applied is 5/7 times the tax rate rounded by default . (If the general type applies: 17%).

   • Taxpayer whose net turnover is at least €10,000,000 during the 12 months prior to the date on which the tax period begins: the percentage to be applied is 19/20 by the tax rate rounded by excess . (If the general type applies: 24%).

   If the tax period does not coincide with the calendar year, BI is taken as the number of days elapsed from the beginning of the tax period until the day before the beginning of the periods indicated above (March 31, September 30 and November 30). In these cases, the split payment is on account of the settlement corresponding to the tax period that is in progress on the day prior to the start of each of the aforementioned periods.

   The resulting quota is deducted from any applicable bonuses, any withholdings and payments on account made, and any fractional payments for the tax period.

The obligation to make a minimum split payment is established when it is higher than the amount resulting from applying the general criteria for this second modality, only for taxpayers whose net turnover in the 12 months prior to the start of the tax period is at least €10,000,000. The amount to be paid for the fractional payments made may not be less, in any case, than 23% of the positive result of the profit and loss account for the first 3, 9 or 11 months of each calendar year or, for taxpayers whose tax period does not coincide with the calendar year, of the year elapsed from the beginning of the tax period until the day before the beginning of each period of payment of the fractional payment, determined in accordance with the Commercial Code and other accounting regulations for development, reduced exclusively by the fractional payments made previously, corresponding to the same tax period.

This percentage will be 25% in the case of taxpayers to whom the tax rate provided for in the first paragraph of art. 29.6 LIS applies.

The second option is chosen by submitting the form 036 of census declaration , in February of the year from which it must take effect, provided that the tax period to which the aforementioned option refers coincides with the calendar year; If not, the deadline will be 2 months from the start of said tax period or within the period between this start and the end of the deadline to make the first fractional payment corresponding to the aforementioned tax period when this last deadline is less than 2 months.

Once the option has been made, the taxpayer is obliged to make the split payments for the same and subsequent tax periods, unless he/she waives its application by submitting the form 036 of the census declaration within the same deadlines.