Spain: Changes to corporate income tax “prepayments” | KPMG | GLOBAL
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Spain: Changes to corporate income tax “prepayments” beginning October 2016

Spain: Changes to corporate income tax “prepayments”

Royal Decree-Law 2/2016 (30 September 2016) introduces measures aimed at reducing the public deficit and, assuming enactment by the Spanish parliament, would apply to the next “prepayments” (estimated tax payments) of corporate income tax due in October and December 2016, and for subsequent tax periods.


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Under these provisions, the corporate income tax “prepayment” rates generally would increase for all companies with a turnover above €10 million in the prior fiscal year and for tax periods beginning on or after 1 January 2016, as follows:


  • A general 24% rate (29% for financial entities) on the partial taxable base corresponding to the first three, nine, and eleven months of the ongoing tax year, or
  • A minimum 23% rate (25% for financial entities) on the “positive accounting result” of the first three, nine, and eleven months of the ongoing tax year

Exceptions would apply in certain instances.


Read an October 2016 report [PDF 104 KB] prepared by the KPMG member firm in Spain

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