The obligation of the European Union to Spain to meet the public deficit target has caused modifications in corporate tax for the year 2017, with the main purpose of increasing the collection of this type of tax.
To begin with, the Corporate Tax Law was modified by Royal Decree Law 2/2016 of September 30, which produces changes in the legal regime of fractional payments of corporation tax.
A minimum instalment payment is established and, in addition, the coefficient applicable to the calculation of the payment is increased.
The Main Changes in the Corporate Tax Model
In 2016, there were already changes with a capital importance for some types of society. For example, the different types of taxation.
Those of a general nature went from 28% to 25%,while in small companies it went from being double, to also being 25%.
For the year 2017, there will be no changes in the deduction in the event of an impairment of the representative securities in the capital units or own funds of an entity, according to Article 15k of the LIS.
In addition, according to article 13.2b, its subsequent deductibility is allowed provided that article 20 of the Corporate Tax Law is complied with.
Decreases in value in any trading book become part of a non-deductible expense, due to its valuation at fair value.
If a permanent establishment is transferred abroad, the possibility of integrating it into corporate tax is eliminated.
Only the possibility of having the negative income derived from the cessation of any type of establishment is maintained. However, this negative income will be reduced in the amount of positive income generated in the same year.
However, the losses that come from the transfer of high-value shares, and also when these entities are not located in Spanish territory and do not meet the minimum requirement of 10%, will be regulated.
In turn, in 2016 a new limit was established, estimated at 50%, for those companies that receive double taxation of an international and national nature.
Following this line, article 11.10 of the LIS modifies the conditions established to integrate into the taxable base of negative income the transfer of any type of shares to companies of the same group.
This type of modification will have a great impact on large companies, according to the Treasury. However, in the limitation of dividends
and capital gains will have a great impact on small and medium-sized enterprises.
The Calculation of Corporation Tax
In addition to the changes in the corporate tax regulations, it is key to know how this tax is calculated.
First of all, the accounting result of the particular companyis required. Achieving this is very simple, since it is the difference between the income and expenses of that year,to achieve the benefits or possible losses.
However, in some cases, some kind of modification or correction may be necessary. Everything depends on the difference between the accounting result and that of the tax base defined by the Tax Agency.
From here, we can find different types of difference,which is very important to know how to locate.
If the differences are temporary, they will be affected in the following years. On the other hand, permanent differences will only affect the year in question,and will not have any kind of record for the future.
For example, any type of fine or sanction by the administration is not a deductible expense and, therefore, we should not take it into account in the future as it is a permanent difference and not of a temporary nature.
From here, and after applying the necessary coefficients, we will already have the income of the year, also known as the previous tax base.
Only the last step will be missing. The tax bases that are negative,from previous years, will help us to obtain the taxable base for the year. This multiplied by the corresponding tax rate will give the result of the amount to be paid by the corporation tax.
As with other types of tax such as Personal Income Tax, having a specialized tax advisor can be used to obtain greater deductions before the Public Treasury and, therefore, obtain a more favorable quote for our society.
Some actions such as hiring children under 30, registered with the Public Employment Service with the unemployment card, are some bonuses that can serve to reduce the amount of tax to be paid.
In fact, each worker will release us up to 1,000 euros. Undoubtedly, knowing the legislation is key to getting more favorable amounts to pay.