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Practical Manual of Companies 2020.

The method described in article 40.3 of the LIS. Minimum payment by instalments

For fractional payments for the year 2021 that correspond to tax periods beginning in 2020 or 2021, the amount of the payment to be entered as established in article 40.3 of the LIS will be result of applying the percentage resulting from multiplying by five-sevenths the tax rate rounded by default, on the part of the tax base of the period of the first three, nine or eleven months of each year natural, determined according to the LIS standards. From the resulting fee the bonuses from Chapter III of Title VI of the LIS, other bonuses that may apply to the taxpayer, withholdings and payments on account made on the taxpayer's income will be deducted ##1## , and the installment payments made corresponding to the tax period.

In accordance with the Fourteenth Additional Provision of the LIS taxpayers whose net amount of turnover in the 12 months prior to the date on which When the tax period begins, let be at least 10 million euros , the percentage referred to in the last paragraph of article 40.3 of the LIS will be the result of multiplying by nineteen twentieths the tax rate rounded up.

Taxpayers whose tax period does not coincide with the calendar year will make the payment in installments on the part of the tax base corresponding to the days elapsed from the beginning of the tax period until the day before the 1st of April, October 1 or December 1, depending on the corresponding period. In these cases, the instalment payment is on account of the payment for the tax period in progress on the day before the beginning of each of the above-mentioned payment periods.

In the case of Spanish economic interest groups and temporary unions of companies covered by the special regime regulated in chapter II of title VII of the LIS that apply this modality of article 40.3 of the LIS, the calculation base will not include the part of the tax base attributable to partners resident in Spanish territory or non-residents in Spanish territory with a permanent establishment there. Therefore, these entities are not obliged to make installment payments when the percentage of participation that corresponds to partners or members residing in Spanish territory is 100 percent.

In the case of taxpayers who are subject to both state and provincial regulations and pay joint taxes to the State and the Provincial Councils of the Basque Country and/or the Foral Community of Navarra, the basis of payment fractioned will be the proportional part that corresponds to each of said Administrations, taking into account the volume of operations carried out in each territory determined according to the volume of operations carried out in each territory according to the last declaration-settlement of the Tax.

In the case of taxpayers who are subject to regional regulations and pay taxes jointly to both administrations, regional and state, will complete the declaration model with the data that are compatible with their respective regional regulations to be able to enter the Common Territory the corresponding part of the regional fractional payment. These entities will enter in their declarations the fields of identification, accrual, base of fractional payment (box 01, box 16 or box 19), volume of operations in the Common Territory (%) (box 29) and the amount to be paid (box 03 or box 34).

For the purposes of the provisions of article 40.3 of the LIS, in accordance with the Fifth Additional Provision of the LIS , in the calculation of the base of the fractional payment It must be taken into account that amount of the Reserve for Investments in the Canary Islands (regulated in article 27 of Law 19/1994) that is planned to be carried out, prorated in each of the periods of the first three, nine or eleven months of the tax period and with the maximum limit of 90 percent of the tax base of each of them. If the amount of the reserve that is actually provided is lower by more than 20 percent of the amount of the reduction in the tax base made to calculate the amount of each of the installment payments raised per year, the entity will be obliged to regularize said payments for the difference between the initial forecast and the effective provision, without prejudice to the settlement of interest and surcharges that may be applicable.

Minimum payment by instalments

Regulation: Fourteenth Additional Provision LIS

For taxpayers whose net amount of turnover in the 12 months prior to the date on which the tax period begins, is at least 10 million euros , a minimum installment payment is set , so that the amount to be deposited cannot be less, in any case, than 23 percent (this percentage will be 25 percent , in the case of taxpayers to whom the type of tax provided for in the paragraph applies first of article 29.6 LIS) of the positive result of the profit and loss account of the year of 3, 9 or 11 first months of each calendar year.

However, there are certain concepts that will be excluded from the positive result referred to:

  • The amount of the positive result that corresponds to income derived from removal or waiting operations resulting from an agreement with the taxpayer's creditors, including in said result that part of its amount that is integrated into the tax base of the tax period.

  • The amount of the positive result resulting from operations to increase capital or own funds to offset credits that is not included in the tax base by application of article 17.2 of the LIS.

  • If they are partially exempt entities to which the special tax regime established in Chapter exempt.

  • If these are entities to which the bonus for the provision of local public services established in article 34 of the LIS applies, the positive result corresponding exclusively to non-subsidized income will be taken. .

  • If they are entities that apply the Reserve for investments in the Canary Islands, the amount of the reserve for investments in the Canary Islands that is planned to be made in accordance with the provisions of section 1 of the fifth Additional Provision of the LIS.

  • If they are entities entitled to the bonus provided for in article 26 of Law 19/1994, 50 percent of the returns they are entitled to said bonus.

  • If these are entities that apply the tax regime of the Canarian Special Zone , regulated in Title V of Law 19/1994, for the purposes of the minimum installment payment, that part will not be computed. of the positive result that corresponds to the percentage indicated in article 44.4 of Law 19/1994, unless it is appropriate to apply the provisions of letter b) of section 6 of said article, in which case the positive result to be computed will be reduced by the amount resulting from applying the provisions of that letter.

  • In the case of shipping entities to which the bonus established in article 76, sections 1 and 2, of Law 19/ 1994, of July 6, the positive result will be taken as that corresponding exclusively to non-subsidized income.

  • If they are entities that apply the bonus provided for in article 33 LIS which regulates the bonus for income obtained in Ceuta and Melilla , 50 percent of that part of the positive result that corresponds to income that is entitled to it.

The minimum installment payment will not apply:

  • To the entities referred to in sections 3, 4 and 5 of article 29 of the LIS nor those referred to in Law 11/2009 .

  • To the venture capital entities regulated in Law 22/2014, of November 12.

  • To the shipping entities that apply the special regime based on the tonnage regulated in Chapter XVI of Title VII of the LIS.