In February you can choose the system of payments on account of corporation tax for 2023

In February, companies can choose the system of payments on account of Corporation Tax for 2023. This system is designed to help companies make more efficient and secure payments, while reducing costs.

The Corporate Tax payment system offers a series of advantages that make it the ideal option for large and small companies. For starters, it offers instant access to funds from anywhere in the world, making it easy for businesses to quickly pay vendors or customers. It also supports multiple currencies, allowing businesses to easily send money across countries without worrying about exchange rates. In addition, it includes advanced fraud protection measures that ensure that all payments are secure and protected from hackers.

The IS payment system also helps reduce costs by eliminating redundant processes such as manual data entry or reconciliation. In addition, its streamlined process allows companies to save time by automating certain tasks such as billing. Finally, the Corporate Tax payment system integrates perfectly with other systems, which makes it easier for companies to manage their finances more efficiently.

Overall, the IS payment system can be a great way for businesses to streamline their financial operations and save money in the long run. With its advanced features and savings benefits, this system could be just what your business needs in 2023.

It is a powerful tool that helps companies reduce costs and increase efficiency. It streamlines the checkout process and eliminates unnecessary steps, allowing businesses to focus their resources on more important tasks. In addition, its seamless integration with other systems makes it easy for companies to monitor their finances and make informed decisions.

Form 036 and who is obliged to present it

Model 036 is a form that must be submitted by taxpayers who wish to make installment payments on account. This tax payment is calculated based on the tax base and an income allocation system, resulting in a percentage for the period.

It is used for the income of non-residents and permanent establishments and entities by virtue of the amounts withheld. The result of the same must be communicated by the taxpayer before September 30, the date on which the tax period ends. The corresponding discounts applicable to the taxpayer must also be taken into account, as well as withholdings.

The income statement must be filed within two months from the beginning of the period to make the first withholding, if less than two months have elapsed since then. If the figure has not changed during the previous 12 months, there is no additional tax to pay. This form helps taxpayers accurately track their nonresident income and ensures withholdings are correct and up-to-date.

The amount of the installment payment must be paid at the time of presenting the form or, otherwise, it will be payable from the first months of each year to the following months of each calendar year. To make the first installment payment, taxpayers need to know exactly how much they have to pay and make sure that this amount is correct. In addition, those who participate in a tax consolidation regime must also take into account the net amount of their figure when determining how much they owe.

If in 2022 the volume of operations of your company did not exceed six million euros, during this month of February you can present a form 036 and choose the method of calculating the payments on account of the Corporation Tax for the year 2023 (if not communicates nothing, in general the same system as last year will be applied).

If you choose the method of calculating the payments on account of Corporation Tax for the year 2023, you must include in the model a declaration indicating the amount of the estimated taxes resulting from the projection of your income and deductions. If you do not make said statement, or it is incomplete, inaccurate or false, you may be penalized.

Form 036 must be submitted by March 1, 2022 at the latest.

When deciding which modality is right for you, remember:

  • Quota system. If you opt for the quota system, in the payments on account of April, October and December you must pay 18% of the amount of the quota to be paid from the last declaration presented for Corporation Tax. This payment on account is calculated from the total amount to be paid and forms part of your overall tax amount. If you do not make these payments on time, additional penalties and interest may be imposed.
  • Base system. If you opt for the base system, when calculating the payments on account, in general, you must apply a rate of 17% on the accumulated tax base of the current year, and you can deduct from the result obtained the withholdings and payments on account supported and the installment payments previously made. The base system is the more popular of the two income tax payment methods in Spain and is available to both individuals and companies.

If your company had a turnover of more than six million euros in 2021, in 2022 it had to apply the base system on a mandatory basis. Well, if due to the economic crisis your turnover in 2022 has decreased below that amount, unless you request otherwise, in 2023 the quota system will be applicable. Therefore, if you wish to continue applying the base system in 2023 (as in previous years), you must notify the Treasury during this month of February through model 036.

In any case, you must also take into account that if your turnover in 2022 was less than six million euros but in 2023 it increases above that amount, the mandatory application of the quota system would resume.

Our professionals will inform you about which payment calculation system is most beneficial for your company

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