Next October 20th ends the deadline for entities subject to taxation by the Corporation tax present and pay the second pay fractional (2P) of this tax, on account of the final one that will have to be presented during the month of July 2018.
Let us remember that in April the first payment on account was made and that in December the third and last payment of the year will be made.
The presentation is made, for companies that pay taxes individually, through model 202. For groups of companies that pay taxes under a tax consolidation regime, the model is the 222.
The declaration is mandatory for taxpayers with net turnover more than six million euros in the tax period prior to which the installment payment corresponds, even if no payment must be made.
Companies not required to present installment payment
In no case are they required to present:
- Economic interest groups and temporary unions of companies covered by the special regime established for this type of entities, since they pay taxes at the headquarters of the partners.
- Entities that pay taxes at the 0% or 1% tax rates.
How to calculate the installment payment
By the system based on the quota of the previous year
Companies that, being obliged to submit form 202, are considered a large company (that is, have a turnover in the immediately preceding financial year exceeding six million euros), will take the full installment as the basis for calculating the installment payment. of the last Corporate Tax filed, reduced by deductions and bonuses, as well as withholdings and payments on account corresponding to the former.
The amount to be paid will be the result of multiplying the amount calculated as the basis of the payment in installments by the percentage of 18%.
By the carry-forward method of the tax base
Companies considered large companies must make the payment in installments through the quasi-complete calculation of the Corporate Tax.
Indeed, based on the accounting results as of September 30, 2017, they will calculate, making the positive and negative adjustments provided for by the tax regulations, the tax base of the installment payment. The negative tax bases from previous years pending compensation will be applied to it, with the limits regulated by the standard, for each size of company, that is:
– General limit of 60% of the taxable base + (1,000,000 euros – 60% of the taxable base).
-Limit of 50% and 25% on the tax base advance for large companies with business figures exceeding 20 and 60 million euros, respectively.
Finally, the tax rate is applied to the taxable base obtained, which will be 17% or 24% depending on whether or not the turnover exceeds 10 million euros.
The withholdings incurred during the year will be subtracted from the amount obtained, as well as the amount paid in the first installment payment in April.
It is worth remembering that, likewise, for entities with a turnover greater than 10 million euros, there is a minimum payment to be made from the result of the period.
This method of calculating the fractional payment - which may be interesting to avoid anticipating taxes in the event that lower future benefits are expected - can be requested, by submitting form 036 of the census declaration, during the month of February of each year.
Postponement and fractionation
With the regulatory changes made at the beginning of 2017, it is not possible to postpone or split model 202 or model 222.
Requests for postponement or installments submitted on these models will be inadmissible and the resulting debts will include a surcharge if paid after October 20, 2017.
Fountain: SAGE
