Taxpayers who are obliged to pay the annual share of the s corp Tax (IS), have to do it in installments. These payments are 3, one corresponding to each current tax period. It is important to note that this installment payment is considered a tax debt. IS deductions and bonuses However, companies can benefit from a series of bonuses and deductions in some cases, for which they will benefit from aid or discounts. You can choose the s corp tax services also.
These bonuses and deductions from s corp Tax are the following: Deduction for double taxation
This aid makes it possible to alleviate the double taxation of income that has already been taxed in another company. But, two types of double taxation are specified: Internal It is one in which the dividends belong to companies resident in Spanish territory. In this case, the company may deduct 50% of the full share corresponding to the Taxable Base of the profit shares, or 100% in the event that the profit shares come from entities with a share percentage, direct or indirect , equal to or greater than 5%,.
One in which the income of a taxpayer is taxed in two countries or the same income is taxed on two different taxpayers by two different countries (taxes borne, income obtained through permanent establishment, etc.). In this way, the company may deduct the lower result of the following options: Tax paid abroad. Which would correspond to pay in Spain for said income In case of delivering participation in profits taxed abroad: the tax paid for the profits out of which the dividends are paid, in the corresponding amount. You can make use of taxfyle for the best results.
Deductions for the incentive of certain activities
This type of tax aid is in force so that certain business activities are promoted. Only a percentage of the investment made (% deduction) may be deducted, and whose value depends on the investment modalities and varies according to them. In addition, these deductions avoid double taxation.
These companies can opt for the installment payment method as follows:
- By presenting the second installment payment of the IS in the first 20 calendar days of October 2020, for taxpayers who cannot benefit from the aforementioned extension period.
- The taxpayer who exercises this option is bound to this modality, exclusively, with respect to the payments corresponding to the same tax period.
Entry and return document
The refund or deposit will be made by transfer to the account that we indicate in the document, which may be open in a credit institution in Spain or in the European Union, in the SEPA area, or in the rest of the countries.
Reduced rate of 20% for cooperatives
It is applicable generically in tax-protected cooperative societies, with the exception of extra-cooperative results, which are taxed at the general rate of 25%. However, this does not apply to credit unions or rural savings banks. For example, associations declared of public utility and foundations can apply 10%. Likewise, certain collective investment entities can pay 1% tax.