Skip to main content

New regulations for 2019

Skip information index

News on split payments for 2P companies 2019

The main new features included in the October 2019 installment payment ( 2P ) on account of Corporate Tax and Income Tax for Non-Residents with Permanent Establishment are the following:

  1. Branches in zone ZEC in fiscal consolidation

    In accordance with the provisions of the Fourteenth Additional Provision bis of Law 19/1994, of July 6, amending the Economic and Tax Regime of the Canary Islands, introduced by Law 8/2018, of November 5, taxpayers who have branches in the Canary Islands Special Zone of entities with tax residence in Spain that are part of a tax group that applies the tax consolidation regime, must separately declare the part of the tax base attributable to the branch in the Canary Islands Special Zone.

    This obligation must also extend to the obligation to make fractional payments in accordance with the modality provided for in section 3 of article 40 of Law 27/2014, of November 27, on Corporate Tax (hereinafter LIS ).

    Therefore, starting from the 2P 2019 period, each of these entities must submit the payment on account of this tax in their corresponding form 202. In this settlement, the amounts of previous fractional payments that correspond to the computable period may be deducted, which, where applicable, could have been included in the fiscal consolidation regime model 222, period 1P .

    All of this, without prejudice to Form 222 which the parent company must submit for the part of the tax base that is not taxed at the special rate and for which it will apply a special tax consolidation regime.

  2. Shipping entities under special regime based on tonnage

    In accordance with the amendment to the fourth Additional Provision of the LIS, introduced by article four of Law 8/2018, of November 5, which modifies Law 19/1994, of July 6, amending the Economic and Fiscal Regime of the Canary Islands, entities that pay taxes under the special tonnage regime are excluded from the minimum installment payment.

    The split payments of these entities will be made as follows:

    • Entities whose tax base is determined entirely according to the objective estimation method .

      In the “additional data (3)” section of form 202, they will mark the code “entity that applies the regime for shipping entities based on tonnage” and enter 25% in the code “current Corporate Tax rate”.

      For these taxpayers, in the case of companies with a turnover of 10 million euros or more, the minimum amount of the split payment will not apply, so the form for completing model 202 will not calculate box 33 (minimum amount to be paid).

    • Entities whose tax base is determined in part according to the objective estimation method and in part by applying the general tax regime (activities not included in the special regime).

      In the “additional data (3)” section of form 202, they will mark the key “entity that applies the regime for shipping entities based on tonnage”, the key “other entities with the possibility of applying two tax rates” and will enter 25/25N in the key “current Corporate Tax rate”.

      In cases where the split payment is submitted by direct submission (without using the form) due to space restrictions in the definition of the field " Additional data - Corporate Tax rate for the current year " the value "25/25" must be entered instead of the value "25/25N".

      Completion of section “B.2 Specific cases (entities with more than one percentage):

      • In box 20 (base for type 1) the base for the fractional payment that corresponds to the entity's activities that are taxed under the general regime will be included. Form 202 will calculate in key 21 the percentage applicable for the purposes of the split payment in relation to the activities included in the general regime and in key 22 the resulting amount.
      • In box 23 (base for type 2) the base for the fractional payment that corresponds to the entity's activities that are taxed under a special regime will be included. The form for model 202 will record 25% in key 24 and the resulting amount in key 25.

      In the case of companies with a turnover of 10 million euros or more, the declarant must include in box 33 (minimum amount to be paid) the amount that, where applicable, corresponds to the activities included in the general regime, since these activities are not excluded from the minimum fractional payment. This information must be provided directly by the declarant.

      In accordance with the Fourteenth Additional Provision of Law 27/2014, of November 27, on Corporate Tax, as amended by Royal Decree Law 2/2016, of September 30, which introduces tax measures aimed at reducing the public deficit, the amount to be paid may not be less, in any case, than 23% (25% for taxpayers to whom the tax rate provided for in the first paragraph of section 6 of article 29 of this Law applies) of the positive result of the profit and loss account for the year of the first 3, 9 or 11 months of each calendar year or, for taxpayers whose tax period does not coincide with the calendar year, of the year elapsed from the beginning of the tax period until the day before the beginning of each period of payment of the fractional payment, determined in accordance with the Commercial Code and other accounting regulations for development, reduced exclusively by the fractional payments made previously. corresponding to the same tax period.