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Measure Name
Date when measure came into force
Extended and new CIT measures for 2014 2013/09/28
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Generic Tax Name Corporate income tax - Corporation tax
Tax name in the national language Impuesto sobre Sociedades
Tax name in English Corporation Tax
Member State ES-Spain
Tax in force since 1996/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Law 27/2014 of 27 November on the Corporate Income Tax

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

The central government and certain autonomous communities: Basque Country and Navarra.

 
Geographical Scope

The whole Spanish territory except in the Basque Autonomous Community and Navarra (they have their own regulations).

 
Taxpayers
Domestic-source income of non-resident entities is Taxed
Not Taxed
Comments
 
Tax object and basis of assessment
As general rule, taxable income under corporate income tax includes also








Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Comments

 

 
Deductions, Allowances, Credits, Exemptions
Valuation of inventory
System First-in first-out (FIFO)
Last-in first-out (LIFO)
Average cost
Specific identification (unit method)

Comments

Depreciation rules
 
Buildings
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

Depending on the type of building: Commercial buldings (2%) & Industrial buldings (3%).

Average depreciation period 62  Years
Average depreciation rate 4.0 %
 
Movable (tangible) assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

Depending on the type of assets: 8.00 - 50.00%.

Average depreciation period 13  Years
Average depreciation rate 20.67 %
 
Movable fixed assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

Depending on the type of assets: 2-15%.

Average depreciation period 44  Years
Average depreciation rate 6.54 %
 
Intangible assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period 13  Years
Average depreciation rate 19.0 %
 
Land (if any)
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate


Comments
  • As a general rule the linear method applies, although other depreciation methods are also of application to tangible assets
  • Tax administration may accept special depreciation plans with higher rates for new assets suggested by taxpayers. and;
  • Throughout 2014, the tax deduction of tangible assets will be limited to 70% of the maximum rates permitted in the CIT regulations, and the non-deuctible depreciation may be depreciated during a 10-year period or its useful life starting from 2015.

Are there limits to interest deductions? Yes No
If yes:
Definition of deduction limit

Comments

Net financial expenses are deductible with a ceiling of 30% of the operating profit, subject to a maximum of EUR 1 million.


Is there an Allowance for Corporate Equity? Yes No
If yes:
Notional rate applied for allowance

Comments

Losses
Loss carry-forward exists? Yes No
If yes:
Time limit: Indefinite
 
Size limit:
 
Loss carry-backward exists? Yes No
If yes:
Time limit: Indefinite
 
Size limit:
 

Comments

For tax year 2015, tax losses offsetting is limited to 25% or 50%, under certain circumstances. For tax year 2016, the limit is 60%, and 70% for the tax year 2017.



Comments

 Exemptions

 Subjective exemption:

  • Full exemption for the Central Government, the Autonomous Communities, certain plic bodies, the Bank of Spain, etc.
  • Partial exemption applies in respect of certain types of ncome accruing to political parties, trade unions, associations, etc.

 Objective exemption:

  • exemption to prevent double taxation of dividends and income derived from the transfer of securities representing equity of residents and non-resident entities in the Spanish territory.
  • exemption of income derived abroad trough a PE.

Reliefs:

  • 50 % of the full tax liability on income received in Ceuta or Melilla;
  • 99 % of the full tax liability in connection with the operation of certain local public services.

Deductions:

  • Deduction to avoid double taxation
  • Tax credit for R&D and technological innovation
  • Deduction for investments in film productions, audiovisual series and live entertainment
  • Deduction for job creation
  • Deduction for job creation for disabled workers

 

 

 

 
Rate(s) Structure
Nominal corporate income tax rate Rate: 28.00 %

Central government surcharge Rate: 0.00 %
Regional government surcharge Rate: 0.00 %
Local government surcharge Rate: 0.00 %
Combined rate (all-in rate) Rate: 28.00 %


Comments

Special tax rate for SMEs
Special tax rates apply to SMEs: Yes No
If yes:
Nominal corporate income tax rate Rate: 25.00 %
Central government surcharge Rate: 0.00 %
Regional government surcharge Rate: 0.00 %
Local government surcharge Rate: 0.00 %
Combined rate (all-in rate) Rate: 25.00 %


Comments
  • SMEs with an annual turnover up to EUR 10 million are subject to a 25% tax rate on their first € 300,000 of taxable income, and to 28% on the excess if any.
 
International aspects
Treaty countries Non-treaty countries
 
Repatriated profits are taxed according to the following system Exemption system Exemption system
Tax credit Tax credit
Deduction Deduction
 
Interest received is taxed Yes No Yes No
Tax rate on interest received 28.00 % 28.00 %
Outgoing dividends withholding tax 15.00 % 21.00 %
Outgoing interest payments withholding tax 15.00 % 21.00 %
 
Foreign losses can be set-off Yes No Yes No
If yes:
Minimum direct or indirect shareholding to qualify loss-offset (if applicable)
 
Loss carry-forward exists? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Loss carry-backward exists? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Controlled foreign company (CFC-)rules exist? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Threshold for capital or voting power held directly or indirectly by resident in non-resident company 50.01 % 50.01 %
CFC-rules apply if foreign tax rate is lower than 75.00 % 75.00 %
CFC-rules apply for passive income only? Yes No Yes No

Comments   Treaty countries

Outgoing dividends withholding tax rates

0.00 - 15.00  %

19.00 - 21.00  %

Outgoing interest payments withholding tax rates

0.00 - 15.00  %

19.00 - 21.00  %

CFC-rules apply if foreign tax rate is lower than 75% of the equivalent ES tax liability

These rules do not apply to EU-controlled subsidiaries if the Spanish shareholder proves that the incorporation of the foreign entity was undertaken for sound business reasons and such entity carries on business activities.Special rules apply to subsidiaries in the EU/EEA member state and in territories of tax havens.


Comments   Non-treaty countries

See comments treaty countries.

 
Measures against profit shifting
 
Do Thin Capitalization (TC) rules exist? Yes No
If yes:
Date of first introduction
Introduced as Explicit TC law
Part of CIT law
Test for TC Ratio
Arm's length
If ratio
Value of numerical ratio:
Definition numerator
Definition denominator
 
Debt considered for test Internal
Internal and external
TC depends on shareholding? Yes No
Substantial shareholding threshold
 
Type of shareholding Direct
Indirect
Automatic remedy Yes No
Remedy Non-deductibility of interest
Reclassification as dividend
 
Rules apply to All companies
Foreign companies
Non-EU companies
Transfer pricing rules exists? Yes No
If yes:
Arm’s length principle applied? Yes No
 
Remedy Fee
Tax base increase
 
Tax due date

Last day of the tax year.

 
Tax collector

The Spanish State Tax Administration.

Payment is made through three instalments, with a subsequent final settlement by means of a return to be filed within 25 calendar days of the end of the six months following the relevant tax period.

 
Special features

Deferment of tax

Company restructuring operations (mergers, divisions, transfers of assets and exchanges of shares) enjoy tax neutrality.

Special features (special schemes)

  • Economic interest groupings based in Spain or in other EU Member States.
  • Cooperative joint ventures.
  • Risk capital companies and funds.
  • Collective investment undertakings.
  • Groups of companies.
  • Mergers, divisions, transfers of assets and exchanges of shares.
  • Mining.
  • Exploration for and extraction of hydrocarbons.
  • International tax transparency, whereby the rules on controlled foreign corporations (CFCs) are incorporated into Spanish law.
  • Small and medium-sized enterprises.
  • Financial leasing contracts.
  • Holding companies which own foreign securities.
  • Partly exempt organisations.
  • Cooperatives.
  • Foundations.
  • Local common land.
  • Tonnage Tax
  • Socimi Scheme (REIT's)

 

Losses

Negative tax bases may be carried forward to offset positive tax bases generated.

Newly founded companies may begin counting the carry-over period from the tax year in which their tax base first becomes positive.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51o (d51b + d51c2)

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 22,246.00 EUR 2.13
2011 19,088.00 EUR 1.78
2010 19,753.00 EUR 1.83
2009 24,198.00 EUR 2.24
2008 30,954.00 EUR 2.77
2007 50,091.00 EUR 4.63
2006 41,409.00 EUR 4.11
2005 35,746.00 EUR 3.84
2004 29,654.00 EUR 3.44
2003 24,826.00 EUR 3.09
2002 23,122.00 EUR 3.09
2001 19,451.00 EUR 2.78
2000 19,775.00 EUR 3.06

Comments