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Practical Handbook for Companies 2021

Refunds derived from corporation tax legislation

1.How is it returned?

If the self-assessment results in the sum of withholdings, payments on account and payments in instalments of corporation tax being greater than the amount resulting from the self-assessment, the taxpayer may request a refund of the excess by means of the corresponding payment or refund document (form 200 or 206).

In the event of a refund, this will be made by means of bank transfer to the account indicated by the taxpayer in the payment or refund document, which may be open at a credit institution in Spain or in the European Union, in the SEPA zone (Single Euro Payments Area formed by the 28 countries of the EU plus Liechtenstein, Iceland and Norway that form the European Economic Area and San Marino, Switzerland and Monaco) or in the rest of the countries.However, the tax authorities may authorise the refund to be made by means of a crossed cheque from the Bank of Spain when it cannot be made by bank transfer.

When the taxpayer does not have an account open in any collaborating entity located in Spanish territory, he/she may state this circumstance in a letter addressed to the Delegate of the State Tax Administration Agency corresponding to his/her tax domicile, including this letter together with the return.In view of this, and after the relevant verifications, the Delegate may order the appropriate refund to be made by means of a crossed cheque from the Banco de España.In the case of taxpayers assigned to the Management Units for Large Companies or to the Central Delegation for Large Taxpayers, the letter shall be addressed to the head of the corresponding Special Delegation of the State Tax Administration Agency or to the head of the Central Delegation for Large Taxpayers, respectively.

2.When is it returned?

Regulation: Article 127 LIS

When the sum of withholdings, payments on account and payments in instalments of corporation tax is greater than the amount of the tax liability resulting from the self-assessment, the tax authorities will make, if appropriate, provisional settlement within the 6 months following the end of the period established for filing the return.

If the declaration has been submitted after the deadline, the 6 months referred to in the previous paragraph shall be calculated from the date of submission.

When the self-assessment made by the taxpayer or, where applicable, the provisional settlement results in a refund (in the latter case, this will not coincide with the amount self-assessed by the taxpayer), the Tax Administration will automatically refund this amount, without prejudice to any subsequent provisional or definitive settlements that may apply.

If the provisional settlement has not been made within the 6-month period referred to above, the Tax Administration will automatically refund the excess amount of the tax assessed, without prejudice to the making of any subsequent provisional or definitive settlements that may be appropriate.

If, once the six-month period has elapsed, the Tax Administration does not order payment of the refund for reasons attributable to it, it shall apply the late payment interest regulated in article 26.6 of Law 58/2003, of 17 December, General Taxation, to the amount pending refund, from the end of the aforementioned six-month period until the date on which payment of the refund is ordered, without the need for the taxpayer to request it.

Remember:

There are three cases in which interest on late payment does not accrue to taxpayers:

  • When I + D + i deductions are credited due to insufficient tax liability by option of article 39.2 of the LIS (boxes [01234], [00083] and [01332] of page 14 bis of form 200).

  • In the crediting of deductions for foreign productions under article 39.3 of the LIS (boxes [01200], [01042] and [01333] on page 14 bis of form 200) and,

  • In the credit for the conversion of deferred tax assets into a receivable from the tax authorities regulated in article 130 of the LIS, as established in article 69 of RIS (boxes [00150], [00120] and [01043] on page 14 bis of form 200).

In these cases, the amount refunded for these concepts will not generate late payment interest against taxpayers, regardless of the date on which the refund is made.

3.Waiver of repayment

In the event that the taxpayer decides to waive the refund resulting from the self-assessment made, he/she must tick the corresponding box on the payment or refund document (form 200 or 206).