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What is a Large Company for tax purposes?

When a company, entrepreneur or professional exceeds 6,010,121.04 euros of turnover in one year, from the following year, it becomes a Large Company, producing significant tax effects that must be taken into account when carrying out procedures before the Tax Agency

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What are the consequences of losing Large Company status?

Losing large company status will have a number of consequences, which are detailed below:

  • Obligation to notify the Tax Administration that it has ceased to be a Large Company:

    Form 036 must be submitted within one month, starting from January 1 of the current year and, in any case, before the expiration of the deadline for submitting the first periodic declaration affected by the variation, or which should have been submitted had said variation not occurred.

  • Value Added Tax self-assessments must be filed quarterly (form 303), except in the case of companies registered in the Monthly Refund Register.

  • Form 111 for Withholdings and payments on account shall be filed quarterly, as shall the other Withholdings forms that must be filed.

  • The self-assessments to be filed for the Tax on Alcohol and Alcoholic Beverages and the Tax on Electricity, in addition to the declarations of operations complementary to the aforementioned, shall be quarterly.

  • Loss of the obligation to present the registry books by means of the electronic supply of invoicing records (SII), unless it is registered in the VAT Monthly Refund Register or is under the Special VAT System for Groups of Entities.

  • If you carry out import operations and you have opted to include the VAT quotas settled by Customs in your tax returns for the corresponding period, in accordance with the provisions of Article 74.1 of Royal Decree 1624/1992, of 29 December, approving the VAT Regulations, de-registration from the Register of Large Companies means that you are excluded from the application of this option, unless you are registered in the VAT Monthly Refund Register or you are covered by the Special VAT System for Groups of Entities.

  • In relation to the instalment payments of corporation tax, if the net turnover during the twelve months prior to the date on which the tax period corresponding to the instalments starts does not exceed the sum of € 6 million, these shall be made by applying the calculation method provided for in section 2 of Article 40 of the Law on Corporation Tax, and on a quarterly basis (however, the calculation method provided for in section 3 of Article 40 may be chosen).