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Practical Handbook for Companies 2021

Payments in instalments

Regulation: Article 116 LIS

Taxpayers who make use of this special regime must make payments in instalments in accordance with the modality established in article 40.3 of the LIS, applied to the tax base calculated in accordance with the rules established in article 114 of this Law and applying the percentage corresponding to the general tax rate regulated in article 115 of the LIS, without calculating any deduction on the part of the tax liability derived from the part of the tax base determined in accordance with the provisions of article 114.1 of the LIS.

For this purpose, in forms 202 and 222, by ticking the box "Entity applying the regime for shipping entities according to tonnage" the percentage of 25 per cent is automatically entered.

In accordance with the amendment to the fourteenth additional provision of the LIS, introduced by article four of Law 8/2018, of 5 November, which amends Law 19/1994, of 6 July, amending the Economic and Fiscal Regime of the Canary Islands, excludes entities taxed under the special tonnage tax regime from the minimum instalment payment.

For these taxpayers, in the case of companies with with a turnover equal to or greater than 10 million euros, the minimum amount of the instalment payment will not be applicable, so the form for filling in form 202 will not calculate box 33 (minimum to be paid).

In the case of entities whose taxable income is determined partly according to the objective assessment method and partly applying the general tax regime (activities not included in the special regime), in addition to ticking the box "Entity applying the regime for shipping entities according to tonnage" on form 202, they should also tick the box "Other entities with the possibility of applying two tax rates".

In such cases, enter 25/25N in the box "Current corporate income tax rate".

In the section "B.2 Specific cases (entities with more than one percentage)", in the box 20 (base at rate 1), the base of the instalment payment corresponding to the activities of the entity that are taxed under the general system will be included and in the box 23 (base at rate 2), the base of the instalment payment corresponding to the activities of the entity that are taxed under the special system will be included.

Likewise, these entities whose taxable income is determined partly according to the objective assessment method and partly applying the general tax system, in the case of entities with with turnover equal to or greater than 10 million euros, the declarant must include in box 33 (minimum to be paid) the amount that, where applicable, corresponds to the activities included in the general system, as these activities are not excluded from the minimum instalment payment.This data must be entered directly by the filer.