Obligation to make payments in instalments on account for Corporation Tax purposes

Payers of Corporation Tax are obliged to make a partial payment, i.e. a payment on account for settlement of the Corporation Tax corresponding to the current tax period on the first day of April, October and December.The partial payment has the status of a tax debt.

In the event that the tax period does not coincide with the calendar year, and that the payment instalment is made according to the modality laid out in article 40.3 of the Spanish Corporation Tax Act, said payment will be on account of the liquidation corresponding to the tax period on the day prior to the start of each of the payment periods.

Entities taxed at a rate of 1% and 0% in accordance with Article 29 sections 4 and 5 of the LIS do not have to make the aforementioned instalment payment and are not obliged to file the corresponding tax return.

A new company limited by shares is not required to make instalment payments on account of the tax returns corresponding to the first two tax periods ending after its incorporation.