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Economic Activities Manual. Fiscal duties of employers and resident professionals in Spanish territory

4.8.1 Fractional payment modalities

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

  1. Modality applicable in general, depending on the liquid quota of the last declaration.

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

    If the result is zero or negative, there is no obligation to submit the declaration.

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

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

    The installment 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 installment payments carried out.

    The following rules apply for calculating the installment 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 apply is 5/7 for the tax rate rounded by default . (If they apply the general rate: 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 apply is 19/20 for the tax rate rounded by excess . (If they apply the general rate: 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 (31 March, September 30 and November 30). In these cases, the installment payment is on account of the settlement corresponding to the tax period that is in progress the day before the start of each of the aforementioned periods.

    The applicable bonuses, the withholdings and payments on account made and the installment payments of the tax period are deducted from the resulting fee.

The obligation to make a minimum installment payment is established when this is greater than the amount resulting from applying the general criteria for this second modality, only for taxpayers whose net amount of turnover in the 12 months prior to the beginning of the tax period is at least €10,000,000. The amount to be paid for the installment payments made may not be less, in any case, than 23% of the positive result of the profit and loss account for the year of 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 entry of the installment payment, determined in accordance with the Commercial Code and other accounting regulations of development, reduced exclusively in the installment payments made previously, corresponding to the same tax period.

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

The second modality is chosen by presenting the form 036 of census declaration , in February of the year from 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 period will be 2 months counting from the beginning of said tax period or within the period between this beginning and the end of the period to make the first installment payment corresponding to the referred tax period when the latter period is less than 2 months.

Once the option is made, the taxpayer is obliged with respect to the installment payments of the same and subsequent tax periods, unless he waives its application by submitting the form 036 of census declaration in the same deadlines.