We are already in the corporate income tax campaign. From the beginning of this month until the 25th, companies have to file their tax forms corresponding to the fiscal year 2023. When filing this tax, there are a lot of variables to take into account. An example of these changing situations is the consideration as a patrimonial company, which we are going to deepen in this article to know the fiscal restrictions that these companies have.
A company is considered as a patrimonial company when more than half of the assets are constituted by securities or by elements not assigned to an economic activity. In order to make this assessment, the quarterly balance sheets of the fiscal year must be taken into account.
Asset-holding companies are usually set up to separate personal assets from business assets. This management has a series of advantages and disadvantages that it is convenient to know. The most important thing to know about these companies is that the Tax Agency exercises special vigilance with them. This is done to ensure that they are not mere instrumental companies, constituted solely for the purpose of evading tax obligations. In addition, it is also common for certain business groups to set up asset-holding companies whose purpose is to rent real estate to the companies of the group or to other companies.
The holding company is characterized by the fact that it does not engage mostly in economic or mercantile activities to place goods and services on the market. Its main purpose is the administration of a patrimony, normally formed by a series of securities or real estate. The figure of an asset-holding entity, regulated in the Corporate Income Tax Law, is of special relevance for those companies whose main activity consists of the management of movable or real estate assets, without carrying out an economic activity.
It is important to understand that one does not constitute an «asset-holding company» as such, but rather civil or mercantile companies that, in view of their activity and configuration of their assets, are considered as asset-holding companies. Below, we highlight the key points to be taken into account.
<h2>Types of asset-holding companies</h2>
<ul>
<li>Property holding companies. These types of companies only own real estate for family use and enjoyment.</li>
<li>Property rental property holding companies. They are dedicated to the rental of the real estate owned by the company. In order to be a holding company, it is not possible to have anyone hired with an employment contract to manage such rentals. If the company that owns and rents the real estate has, at least, one person hired full time, in this case we will be in front of a non patrimonial company of rent of real estate.</li>
<li>Asset-holding companies holding securities. They are dedicated only to holding securities and investing in the stock market, without having a business structure or employing workers.</li>
</ul>
<h2>Consideration as an asset-holding entity</h2>
When calculating last year&#8217;s Corporate Income Tax (IS), review the accounts and check whether the regime for asset-holding entities is applicable. This will be the case if more than 50% of your company&#8217;s assets are made up of securities or assets not assigned to an economic activity.
As we have seen before, to find out if this is the case, you have to calculate the average of the quarterly balance sheets of the fiscal year. It is not enough to look at the final balance sheet as of December 31. If we are talking about a company that is the controlling entity of a commercial group, we will have to take into account the average of the consolidated balance sheets, regardless of whether or not its group prepares consolidated accounts.
It is therefore advisable to analyze, at the end of each year, the quarterly balance sheets to find out whether or not the company has the status of an asset-holding entity. Calculate the average of the assets of these balance sheets and, if more than half is made up of assets not assigned to these economic activities, or by shares and participations, we can presume that we are in front of an entity of patrimonial regime.
Shares or participations are considered as assets assigned when they grant at least 5% of the capital and are held for at least one year for the purpose of directing and managing the participation, provided that the corresponding organization of material and personal means is available for this purpose.
<h2>Money and credit rights</h2>
It is important to know that, when calculating this average, neither the money nor the credit rights coming from the transfer of patrimonial elements assigned to economic activities or securities that have been carried out in the tax period or in the two previous tax periods will be computed. However, cash and credit rights deriving from the transfer of assets assigned to economic activities carried out in the same tax period or in the two previous periods, or deriving from the ordinary course of the economic activity, are considered as assigned items.
<h2>Loss of tax benefits or incentives</h2>
A company may be adversely affected if it is determined that it is necessary to apply the regime of patrimonial entity. With this regime several tax benefits and incentives are lost that are provided for entities that do engage in the development of economic activities. If the company is considered as a patrimonial entity, it will not be able to benefit from the following conditions:
<ul>
<li>The special regime for small companies (accelerated depreciation, equalization reserve&#8230;).</li>
<li>If it has been constituted recently, in the first two financial years with profits (the first four if it is a start-up) it will not be entitled to benefit from the reduced rate of 15%.</li>
<li>The regime for entities holding foreign securities (ETVE).</li>
<li>It will not be able to compensate the negative taxable bases when the entity is acquired with the intention, on the part of the buyer, to take advantage of such negative bases.</li>
<li>It will not be able to apply the exemption for the tacit capital gain originated in the transfer of the participations with respect to the tax periods in which the entity is considered as a patrimonial entity.</li>
<li>It will not be able to apply the full exemption to eliminate double taxation in the case of receipt of dividends or sale of shares, when certain requirements are met.</li>
<li>It will not be able to apply the reduced rate of 23% (as of January 1, 2023, a reduced tax rate of 23% will be introduced for entities whose net turnover for the immediately preceding tax period is less than 1 million euros).</li>
</ul>
<h2>Your taxes made easier with Vasalto</h2>
In summary, the companies themselves, which have economic activities as their objective, have greater tax benefits than those that are considered patrimonial entities. For all these reasons, it is necessary to carry out as detailed a review as possible of a company&#8217;s economic activities. At Vasalto, we have a team of tax experts that can help you determine whether your company is classified as a patrimonial entity. In this way, we guarantee proper compliance with tax obligations.
At Vasalto, we have been helping companies with a comprehensive service for more than 30 years. We offer both payroll outsourcing services and accounting advice. During these years we have worked hand in hand with a large number of clients who are leaders in their respective sectors, which gives us a great deal of experience in the sector.
We are present in several countries, with headquarters in Madrid, Barcelona, Porto and Bordeaux, and we have clients all over the world, as well as collaborators in more than fifty countries. Moreover, Vasalto is a purely technological company. We believe in putting technology at the service of talent. That is why we have a series of proprietary computer systems that allow us to manage more than 35,000 payrolls every month and automate most of our clients&#8217; accounting procedures.
Thanks to Valanza, Vasalto&#8217;s legal office, we also have a team of lawyers specialised in the areas of commercial, civil, labour and administrative law, among others. We count on them to provide the best legal assistance possible, always working towards comprehensive service.
If you are interested in learning more about payroll outsourcing, at Vasalto we will be happy to assist you. Contact us to get to know us and see how we can help your company.

Property companies and corporate income tax

Aprende cómo el Impuesto sobre Sociedades afecta a las empresas consideradas patrimoniales. En Vasalto te asesoramos con tus impuestos.

Las sociedades patrimoniales y el Impuesto sobre Sociedades

https://cms.vasalto.com/wp-content/uploads/2024/07/Diapositiva9.jpg

Portada

Vasalto Tech & Talent

https://cms.vasalto.com/wp-content/uploads/2024/06/vasaltoLogo.svg

https://secure.gravatar.com/avatar/e4ad24eea9b0a7dbb4f2a2f94fe65e50?s=96&d=mm&r=g

Ines Guerra

Although the income tax campaign is still in its last throes, at Vasalto we are already thinking about what is to come. Next July is the deadline to pay the Inheritance Tax. Therefore, we wanted to dedicate a series of articles in our blog to better explain this tax. Next we are going to detail the most basic and important aspects of the IS: its characteristics, who has to pay it, how it is calculated and which are the models for its presentation.
<h4>Characteristics of the Corporate Income Tax</h4>
Corporate income tax is the tax levied on the income of companies and other legal entities located in Spain. To better understand the nature of the tax, it is best to look at its characteristics. We will classify it as a personal, direct and periodic tax.
It is personal because it takes into account personal circumstances. The taxable event, which is what is taxed, is the income obtained by legal entities, mainly commercial companies. There are also other types of taxes that are not related to these personal circumstances. An example of a real tax is the Real Estate Tax (IBI).
It is a direct tax because it is levied on the wealth itself. In this same classification we can find taxes such as Personal Income Tax (IRPF), which is levied on the acquisition of wealth by an individual. Other taxes such as VAT (Value Added Tax) tax the use of this wealth.
Finally, it is periodic because it is a tax liability that is generated over time. As the taxable event is prolonged in time, this tax is settled after the end of this period. The tax period for this tax is the fiscal year. This means that this year is taxed on the income obtained in the year 2023. On the other side we find the instantaneous taxes. These place their taxable event in specific acts. The Inheritance and Gift Tax can be an example of an instantaneous tax. Inheriting or donating are concrete acts, they are not prolonged in time, that is why their liquidation is instantaneous.
<h4>The taxpayers in the Corporate Income Tax</h4>
A taxpayer is any person, whether an individual or a legal entity, who is obliged to file a tax return. In the specific case of Corporate Income Tax, taxpayers will always be legal entities. In Spain there are many types of legal entities, but those that are liable for this tax are the following:
<ul>
<li>Commercial companies: this is considered to be any legal entity that is created to initiate a commercial activity for profit. This classification includes Temporary Joint Ventures (UTE), as well as corporations and limited liability companies.</li>
<li>Civil Companies that have a mercantile nature</li>
<li>Investmentfunds, pension funds, cooperatives</li>
<li>Agricultural companies and economic interest groupings (EIGs).</li>
<li>Associations and foundations (NGOs, professional associations).</li>
</ul>
These companies are obliged to file the tax, even though no income has been obtained during the year. Nor does it exempt from filing in situations such as bankruptcy or liquidation of the company.
<h4>How the Corporate Income Tax is calculated</h4>
The first thing we have to know when calculating the Corporate Income Tax is the tax rate that corresponds to each company. There are six different percentages, which are going to be applied according to a series of circumstances:
<ul>
<li>25%. This is the general rate. If the company does not fit in any of the other assumptions, this rate is applied.</li>
</ul>
<ul>
<li>23%. This reduced rate is one of the novelties of this year for the Corporate Income Tax. It will be applied to entities with a turnover not exceeding one million euros in the previous tax period. The patrimonial entities are not eligible for this reduction.</li>
</ul>
<ul>
<li>20%. It is applied to those cooperatives that are tax protected.</li>
</ul>
<ul>
<li>15%. This reduction is established for newly created entities. They can benefit from this reduction in the first positive taxable base and the immediately following one. If the period following the first positive base is not positive, the reduction will not be effective.</li>
</ul>
<ul>
<li>10%. This tax is for legal entities that are not for profit, such as NGOs.</li>
</ul>
<ul>
<li>1%. In this last case are the investment companies of variable capital regulated by Law 35/2003.</li>
</ul>
Once the corresponding tax rate is known, it is time to calculate the tax. Now we have to know the accounting result, which is nothing more than the result of subtracting the expenses from the income of a company.
A series of reductions can be applied to this accounting result to obtain the taxable base. These reductions, such as the offsetting of tax losses, are specified in Chapter V of the Corporate Income Tax Law (LIS).
Once the relevant reductions have been made, the gross tax liability is calculated by applying the tax rate.
<h4>Corporate income tax filing forms</h4>
The most important forms relating to Corporate Income Tax are as follows:
<ul>
<li>Form 200: This is the form used by most companies. They are those whose fiscal year coincides with the calendar year. These entities must file this form between July 1 and July 25 of the year following the year in which the tax period ends.</li>
</ul>
<ul>
<li>Form 202: This is the form used for payments on account, which are amounts that are advanced before the payment of a debt. This form is to be filed in the first 20 calendar days of the months of April, October and December.</li>
</ul>
<ul>
<li>Finally, we have Form 220. This form is the one established for entities under the tax consolidation regime. This regime is regulated by the Corporate Income Tax Law, specifically in its chapter VI, which includes articles 55 to 75. The filing period for this form is, as a general rule, the first 25 calendar days of July of the year following the end of the tax period.</li>
</ul>
<h4>Your taxes made easier with Vasalto</h4>
At Vasalto, we have been helping companies with a comprehensive service for more than 30 years. We offer both payroll outsourcing services and accounting advice. During these years we have worked hand in hand with a large number of clients who are leaders in their respective sectors, which gives us a great deal of experience in the sector.
We are present in several countries, with headquarters in Madrid, Barcelona, Porto and Bordeaux, and we have clients all over the world, as well as collaborators in more than fifty countries. Moreover, Vasalto is a purely technological company. We believe in putting technology at the service of talent. That is why we have a series of proprietary computer systems that allow us to manage more than 35,000 payrolls every month and automate most of our clients&#8217; accounting procedures.
Thanks to Valanza, Vasalto&#8217;s legal firm, we also have a team of lawyers specialized in the areas of commercial, civil, labor and administrative law, among others. We count on them to provide the best legal assistance possible, always working towards comprehensive service.
If you are interested in learning more about payroll outsourcing, at Vasalto we will be happy to assist you. Contact us to get to know us and see how we can help your company.

Learn about Corporate Income Tax in depth

Descubre todo lo que necesitas saber sobre el Impuesto sobre Sociedades: características, obligados tributarios y su presentación en Vasalto.

Conoce a fondo el impuesto sobre sociedades

Conoce a fondo el Impuesto sobre Sociedades

https://cms.vasalto.com/wp-content/uploads/2024/06/Diapositiva7.jpg

For this fiscal year 2023, the main changes in the Corporate Income Tax (IS) are focused on adopting measures for emerging companies, micro-enterprises and for those that undertake investments in energy saving. Below, we are going to see the main novelties for the liquidation of this fiscal year.
Regulatory novelties with incidence on the tax return forms
1. Freedom of amortization of installations using energy from renewable sources.
Firstly, the possibility of freely amortizing investments made in installations for self-consumption of electricity is introduced. This change can be applied in tax periods beginning or ending in 2023. This modification also includes investments in installations for thermal use for own consumption, provided that they use energy from renewable sources and replace installations that use energy from non-renewable fossil fuel sources.
The amount of the investment that may benefit from the free depreciation regime will be 500,000 euros. For the application of this case it is necessary that, during the 24 months following the date of commencement of the tax period, the total average workforce of the entity is maintained with respect to the average workforce of the previous twelve months. In addition, taxpayers must have the necessary documentation to prove this investment.
2. Accelerated depreciation of certain vehicles
For tax periods starting from 2023 onwards, an accelerated depreciation scenario is introduced for investments in certain new vehicles. These vehicles must be used for economic activities and must enter into operation in the tax periods beginning in 2023, 2024 and 2025. The amendment allows them to be depreciated based on the result of multiplying by 2 the maximum straight-line depreciation coefficient provided for in the officially approved depreciation tables.
With effect from June 30, 2023, this accelerated depreciation scenario is extended to investments in new electric vehicle recharging infrastructures, of normal or high power.
3. Reduced tax rate
Also from 2023, a new reduced tax rate of 23 percent is introduced. Entities whose net turnover for the immediately preceding tax period is less than 1 million euros are eligible for this reduction. In order to know how to calculate the net amount of the turnover we have to go to paragraphs 2 and 3 of article 101 of the LIS.
4. Deduction for investments in film productions
In order to encourage investment in culture, it has been decided to increase the limits of the deduction for investments in films and series, whether Spanish or foreign. The maximum amount of the deduction is increased to 20 million euros for films. In the case of series, the deduction is determined per episode, with a limit of 10 million euros for each episode produced.
5. Income not subject to withholding tax
Another of the most important novelties is that a series of withholding obligations are eliminated. From this fiscal year, there will be no obligation to withhold or pay on account with respect to income derived from the following events:
&#8211; The reimbursement or transfer of participations or shares issued by listed funds or by listed open-end investment companies regulated by article 79 of the Regulations for the development of Law 35/2003 or collective investment institutions incorporated abroad analogous to those mentioned above.
&#8211; The interest received by the securities companies as a consequence of credits or loans granted in relation to purchase or sale operations of securities referred to in article 126.b) of Law 6/2023, of March 17, of the Securities Markets and Investment Services.
&#8211; Interest received by investment services companies in respect of active loan or deposit transactions referred to in article 70.1 of Royal Decree 813/2023, of November 8, on the legal regime of investment services companies and other entities providing investment services.
&#8211; Interest received by central counterparties or by entities that are members of a central counterparty.
&#8211; The consideration for the guarantees constituted in application of the provisions of Article 97.2 of the Securities Markets and Investment Services Law of Articles 41 and 42 of Regulation (EU) number 648/2012 of the European Parliament and of the Council of 4 July 2012.
&#8211; The interest received by the managing entities of the payment systems recognized in accordance with Law 41/1999, of November 12, on payment and securities settlement systems, as well as by the entities that have the status of participants in these systems, from guarantees constituted in application of the provisions of letter d) of article 2 of said law, or from the accounts exclusively affected to the performance of the operations inherent to the corresponding payment system.
6. Emerging companies («Startup»)
A series of tax incentives will be applied for the taxpayers of Corporate Income Tax and Non-Resident Income Tax who obtain income through a permanent establishment located in Spanish territory and who have the status of an emerging company as provided therein:
&#8211; They will be taxed at the rate of 15% in the first tax period in which, having the status of emerging company, the taxable income is positive and in the following three periods, provided that they maintain such status.
&#8211; They will be able to request to the State Tax Administration, at the moment of the presentation of the self-assessment, the postponement of the payment of the tax debt corresponding to the first two tax periods in which the taxable base of the Tax is positive.
&#8211; They will not have the obligation to make the installment payments regulated in articles 40 of the LIS and 23.1 of the TRLIRNR that they must make on account of the liquidation corresponding to the tax period immediately following each one of the tax periods in which the deferral referred to in the previous point has been requested, as long as in them the condition of emerging company is maintained.
7. Temporary levies: energy and credit institutions/financial establishments.
Finally, we are going to talk about the temporary energy tax and the tax on credit institutions and financial credit establishments. Both will have this temporary character during the years 2023 and 2024.
The temporary energy tax must be paid by the persons or entities that have the consideration of main operator in the energy sectors, according to the Resolution of December 10, 2020 of the National Commission of Markets and Competition.
The temporary levy of credit institutions and financial credit institutions must be paid by institutions operating in Spanish territory and whose income from interest and commissions corresponding to the fiscal year 2019 is equal to or higher than 800 million euros.
Both levies are configured as a non-tax public property benefit, which are not considered as tax-deductible expenses for the purpose of determining the taxable base of the Corporate Income Tax.
Your taxes made easier with Vasalto
At Vasalto, we have been helping companies with a comprehensive service for more than 30 years. We offer both payroll outsourcing services and accounting advice. During these years we have worked hand in hand with a large number of clients who are leaders in their respective sectors, which gives us a great deal of experience in the sector.
We are present in several countries, with headquarters in Madrid, Barcelona, Porto and Bordeaux, and we have clients all over the world, as well as collaborators in more than fifty countries. Moreover, Vasalto is a purely technological company. We believe in putting technology at the service of talent. That is why we have a series of proprietary computer systems that allow us to manage more than 35,000 payrolls every month and automate most of our clients&#8217; accounting procedures.
Thanks to Valanza, Vasalto&#8217;s legal office, we also have a team of lawyers specialised in the areas of commercial, civil, labour and administrative law, among others. We count on them to provide the best legal assistance possible, always working towards comprehensive service.
If you are interested in learning more about payroll outsourcing, at Vasalto we will be happy to assist you. Contact us to get to know us and see how we can help your company.

Corporate Income Tax News 2023

Descubre las principales modificaciones del Impuesto sobre Sociedades para 2023, incluyendo beneficios para empresas emergentes

Impuesto sobre Sociedades: Novedades del ejercicio 2023

Novedades en el Impuesto sobre Sociedades 2023

https://cms.vasalto.com/wp-content/uploads/2024/06/Diapositiva8.jpg

Categoría: Impuestos