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Practical Handbook for Companies 2021

The 2022 corporate income tax instalment payment under the tax consolidation system

The tax group, being considered as a corporate income taxpayer, is obliged to make payments in instalments on account of the payment of said tax corresponding to the tax period in question.

This obligation is incumbent on the representative entity or group head entity, according to article 75 of the LIS, and shall be carried out within the same deadlines and in the same amounts as in the common system, with the following particularities:

  1. The model to be used to make the fractioned payment for tax groups is model 222.

  2. The presentation of form 222 before the State Administration will be carried out exclusively by telematic means.

  3. In the event that the group applies the instalment payment method provided for in article 40.2 of the LIS and the first tax period of application of the tax consolidation system is elapsing, or, being the second, the circumstances do not exist that allow the existence of a base tax period for the calculation of the instalment payment, the group must pay the sum of the instalment payments corresponding to the companies making up the group considered in isolation.

  4. Where in the current tax period the group has changed its composition with respect to the tax period to be taken as the basis for the instalment payment, as a result of the inclusion or exclusion of member companies, the tax liability shall be affected by the following changes:

    1. Increases of the amounts that would have corresponded to the companies incorporated, considered in isolation.

    2. Decrease of the amounts corresponding to companies excluded, considered in isolation.

  5. For the purposes of calculating the volume of operations of the group of companies during the twelve months prior to the date on which the tax periods begin in order to determine whether it is compulsory to apply the instalment payment method provided for in Article 40.3 of the LIS, the following shall be taken into account:

    1. If the group has not changed its composition with respect to the previous twelve months, the volume of transactions shall be the overall group figure for the twelve months indicated, excluding intra-group transactions.

    2. If the group includes companies that did not form part of the group during the twelve months prior to the beginning of the tax period, the volume of transactions would be the volume of transactions carried out by the group during the twelve months, excluding intra-group transactions, increased by the volume of transactions carried out during the same period by the companies included, individually considered.

      However, if the companies included have been incorporated during the tax period to which the instalment payment relates, they will not be taken into account in calculating the volume of transactions.

    3. If companies that were part of the group during the 12 months prior to the beginning of the tax period have been excluded, the time of exclusion shall be taken into account.

      If the exclusion occurs before the deadline for making the first instalment payment corresponding to the tax period begins, the volume of transactions would be the volume of transactions carried out during the twelve months prior to the beginning of the tax period, excluding internal transactions, minus the volume of transactions corresponding to the excluded companies carried out in the same period, considered individually.

      In the event that the exclusion occurs after the deadline for making the first instalment payment for the tax period has begun, the volume of transactions will not be altered, as all instalment payments for the tax period must be made using the same method.

    4. If during the twelve months prior to the beginning of the tax period the companies had not been taxed under the tax regime for groups of companies, the volume of transactions shall be the sum of the transactions carried out by each company, individually considered, in the same period.

With effect for tax periods beginning on or after 1 January 2019 Annex II of Order HFP/227/2017, of 13 March, approving forms 202 and 222 has been replaced.The reason for this modification lies in the need to unify and coordinate with form 220 the information in the Identification sections of form 222 "Corporate Income Tax.Regime of fiscal consolidation.Payment by instalments".

A tener en cuenta:

The filing of form 222 is obligatory in any case, even in cases where no amount is payable.

For the notification of changes in the composition of the tax group occurring prior to the first instalment payment affected by the new composition, the parent company must use the form provided for this purpose in the annex to Form 222.