News in Spain regarding legislation and the tax system, especially for companies. On July 1st, the Constitutional Court declared unconstitutional the installment payment of the corporate tax established in 2016. The government at that time established a minimum instalment payment of 23 % for companies with a turnover of more than 10 million euros.
The particularities of this decision are set out in the path established at the time to approve the initiative (the measure was introduced via Royal Decree-Law 2/2016 of 30 September and it is precisely this path that the Constitutional Court now regulates against).
Because of this, the Constitutional Court does not define the minimum instalment payment as unconstitutional but rather as the means by which it was introduced into the Spanish Law, since a decree-law cannot affect the rights, duties and freedoms of citizens regulated in Title I, among which is the “duty to contribute to the support of public expenditure”. In fact, this minimum instalment payment was later included, in 2018, via the Budget Law.
Details of the full content of the judgment have not yet been released. However, because of the mentioned above, the practical consequences of the judgement are likely to be very limited. Interests on the delays could be claimed for the time when amounts were advanced through minimum instalment payments in 2016 and 2017 of non-prescribed declarations leading to subsequent returns.
We will provide more information as soon as this is known. At Auxadi we are experts in providing value added services in accounting, tax compliance and international payroll management. If you need more information, please do not hesitate to contact us.
All information contained in this publication is up to date on 2020. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.