Corporate Tax: decision to be made before October 20th

Fiscal News
If your company has a turnover of over 10 million euros be aware of the important decision to be taken before October 20th

In this article we explains the inconstitutionality of payments on account of corporate tax return of 2016,2017 and 2018.

The Constitutional Court has recently issued a Sentence declaring the unconstitutionality of Royal Decree Law 2/2016, of September 30, regarding the regulation of the calculation of payments on account of Corporate Tax return corresponding to the years 2016 and 2017, and to the first payment made in 2018.

The Royal Decree Law (RDL) measures declared unconstitutional affected entrepreneurs with a turnover of over 10 million euros and forced them to make a minimum installment payment based on their accounting result without considering, for example, tax adjustments for exempt income, which meant, in in many cases, a substantial advance of the Corporation Tax fees that were not returned by the Tax Administration until more than a year later.

The reason for the unconstitutionality of the RDL is based on the fact that it goes beyond the limits set forth in article 86.1 of the Spanish Constitution, violating the rights, duties and freedoms of citizens, in terms of the obligation to contribute to the support of the public spending.

What are the effects of this sentence? The Constitutional Court says that situations that have acquired firmness or that have not been appealed within the deadline stipulated will not be reviewed. It must be added that, the payments on account corresponding to the tax periods as of July 2018 will not be affected by the declared unconstitutionality.

Finally, an important question arises regarding the possible return of default interests corresponding to those payments on account that, being determined in accordance with this null RDL, would have been higher than those due if the current legislation had not been altered. In this case, we understand that it is feasible that taxpayers can request the interest derived from the differential paid in the payments on account affected by the judgment if they have not prescribed.

+ Contact any of our offices for advisory on this matter.

Related services:

 

 

Germany powers ahead in electric cars sales growth

Germany powers ahead in electric cars sales growth – sales more than treble during pandemic Germany has seen the world’s fastest growth in electric car sales of all major economies * during the pandemic, with…

Changes in the Spanish Tax System

  New legislation Law 11/2021, on measures to prevent and fight against tax fraud, published in the official gazette on July 10, introduces numerous changes in the Spanish tax system. Important amendments have been introduced…

Relevant changes affecting Wealth

NEW CHANGES THAT AFFECT WEALTH TAX IN SPAIN Last Saturday 10 July 2021 the Spanish Official Gazette published Law 11/2021 which introduces relevant changes in the Spanish Wealth Tax that may affect you or your…
Menu