Corporate tax is the main tax on profits in Spain.
Learn about the types of taxes on profits and how they are calculated.
The existence of a corporate tax influences business decisions. Sometimes, taking one path or another can condition the tax bill to such an extent that the tax factor becomes decisive.
For SMEs, it is essential to quickly manage all the accounting information required for the management of these taxes. This is the way to be able to punctually dominican republic email list comply with formal obligations and have sufficient data for correct tax planning .
What is corporate tax?
This is a category of taxes that tax income obtained as a result of positive results of economic activities . Sometimes, they are also called taxes on profits.
It is important to note that the tax is usually the acquisition and not the application . Additionally, there are usually other taxes that tax the application of the result. For example, the payment of dividends, but these taxes are not considered taxes on profits.
What types of profit taxes exist?
Profits from economic activities may be subject to various types of taxes :
Some tax the profit obtained anywhere in the world by a legal entity resident in a country. In Spain, we have the corporate tax .
Others tax the profits obtained by non-resident persons or entities within the country. This is the case, in Spain, of the income tax for residents .
Mixed income , which comes from both personal work and profits obtained by people who carry out a business or professional activity, is also often taxed . In Spain, this is the case of the taxation of income from economic activities by the Personal Income Tax (IRPF) .
How important is corporate tax in Spain?
According to provisional data from the 2021 Annual Tax Collection Report , corporate tax accrued during the year amounted to €24,609 million. The provisional figures for all taxes accrued during the year amount to € 224,589 million .
In fact, in terms of revenue, it is usually the third largest tax , well behind personal income tax and VAT, but closely followed by special taxes. In some circumstances, the latter can even overtake corporate tax.
