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Practical Manual of Companies 2022.

What is Corporation Tax?

Regulation: Articles 1, 2 and 3 LIS

Article 31 of the Spanish Constitution requires the contribution to the support of public expenses, in accordance with the economic capacity of each taxpayer.

One of the most direct and expressive manifestations of a person's economic capacity is the overall income they obtain during a certain period of time.

In this sense, the Spanish tax system establishes the Personal Income Tax (IRPF) to tax the income obtained by a natural person.

However, when the income is obtained by a legal entity (company, association, foundation, etc.), or an entity without legal personality considered a taxpayer by the Tax legislation (investment funds, UTE , pension fund, etc.), the Spanish tax system establishes the Corporate Tax to comply with the constitutional obligation to contribute.

For this reason, the Corporate Tax constitutes, together with the Personal Income Tax, a basic pillar in direct taxation within the framework of a tax system that regulates the obtaining of income as a manifestation of the economic capacity of each taxpayer.

Corporate Tax is defined as a tax of a direct and personal nature that taxes the income of companies and other legal entities:

  • Direct nature , because it taxes the obtaining of income as a direct manifestation of the taxpayer's economic capacity.

  • Personal nature , because it takes into account certain particular circumstances of each taxpayer when specifying the amount of the tax benefit that they are obliged to satisfy.


Corporate Tax is applied throughout Spanish territory. For these purposes, the Spanish territory includes, in addition to the peninsular territory, the Balearic Islands, the Canary Islands, Ceuta and Melilla, those areas adjacent to the territorial waters over which Spain can exercise the rights that correspond to it, referring to the marine soil and subsoil, superjacent waters. and its natural resources, in accordance with Spanish legislation and international law.

The provisions of the previous section will be understood without prejudice to the regional tax regimes of Concert and Economic Agreement in force, respectively, in the Historical Territories of the Autonomous Community of the Basque Country and in the Community Provincial Council of Navarra, and the provisions of the international treaties and conventions that have become part of the internal regulations (in relation to the joint taxation regime for the State Administration and the Provincial Councils). Foral of the Basque Country and/or of the Foral Community of Navarra, see Chapter 13 of this Practical Manual ).