Company tax reporting in Spain involves a series of obligations and procedures that companies must follow to comply with Spanish tax laws. This process includes filing tax returns, making payments, and maintaining appropriate records. Here is a detailed overview of company tax reporting in Spain:

1. Corporate Income Tax Reporting

Filing and Deadlines:

• Annual Tax Return (Modelo 200): Companies are required to file their annual corporate income tax return using Form 200 (Modelo 200). The deadline for this filing is within six months and 25 days following the end of the fiscal year. For companies with a fiscal year ending on December 31, the deadline is typically July 25 of the following year.
• Advance Payments: Companies must make quarterly advance payments on account of their annual corporate tax liability. These payments are based on estimated profits and are made using Form 202 (Modelo 202). The deadlines for these payments are:
  • 1st Quarter: April 20
  • 2nd Quarter: July 20
  • 3rd Quarter: October 20
  • 4th Quarter: January 20 of the following year

Documentation and Compliance:

• Accounting Records: Companies must maintain accurate and complete accounting records, including financial statements, ledgers, and supporting documentation for income and expenses.
• Tax Adjustments: Adjustments may be required for tax purposes, such as the addition or subtraction of items not recognized for tax purposes. Common adjustments include non-deductible expenses and provisions.
• Transfer Pricing Documentation: Companies must prepare and maintain transfer pricing documentation to demonstrate that intercompany transactions are conducted at arm’s length.

Additional Reporting Requirements:

• Corporate Tax Return Supplementary Forms: Depending on the nature of the company’s activities, additional forms or schedules may be required to provide detailed information about specific transactions or activities.

2. Value Added Tax (VAT) Reporting

Filing and Deadlines:

• Quarterly VAT Returns (Modelo 303): Companies must file quarterly VAT returns using Form 303 (Modelo 303). The deadlines for quarterly VAT returns are:
  • 1st Quarter: April 20
  • 2nd Quarter: July 20
  • 3rd Quarter: October 20
  • 4th Quarter: January 20 of the following year
• Annual VAT Summary (Modelo 390): Companies must also file an annual VAT summary return using Form 390 (Modelo 390). This is due by January 30 of the following year.

Documentation and Compliance:

• VAT Invoices: Companies must issue VAT invoices for transactions and maintain proper records of these invoices.
• VAT Records: Companies are required to keep detailed VAT records, including documentation of VAT-exempt transactions and VAT paid on purchases.

3. Withholding Taxes Reporting

Filing and Deadlines:

• Withholding Tax Returns: Companies must file withholding tax returns for payments such as dividends, interest, and royalties using Forms 111 (Modelo 111) and 115 (Modelo 115). These returns are filed quarterly, with deadlines of:
  • 1st Quarter: April 20
  • 2nd Quarter: July 20
  • 3rd Quarter: October 20
  • 4th Quarter: January 20 of the following year

Documentation and Compliance:

• Withholding Tax Certificates: Companies must provide certificates to recipients of payments subject to withholding tax, indicating the amount of tax withheld.

4. Local Taxes Reporting

Filing and Deadlines:

• Local Business Tax (IAE): Companies operating in Spain may be required to file and pay local business tax (Impuesto sobre Actividades Económicas, IAE) based on their business activities and location. The deadlines and filing requirements vary by municipality.

5. Additional Reporting Obligations

Economic Activities Registry:

• Companies must register their economic activities and keep their details up-to-date with the Spanish Tax Agency (Agencia Tributaria).

Financial Statements:

• Companies must prepare annual financial statements in accordance with Spanish Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), depending on their size and nature of operations.

Country-by-Country Reporting:

• Large multinational companies may be subject to Country-by-Country Reporting (CbCR) requirements, which require detailed disclosures about their global operations, including revenues, profits, taxes paid, and other relevant financial information.

6. Tax Audits and Compliance Checks

• Tax Audits: The Spanish Tax Agency conducts audits to ensure compliance with tax laws. Companies must be prepared to provide detailed records and documentation during these audits.
• Penalties and Fines: Non-compliance with tax reporting requirements can result in penalties and fines. The Spanish Tax Agency has the authority to impose fines for late filings, inaccuracies, and other tax compliance issues.

Summary

Company tax reporting in Spain involves multiple requirements, including the filing of corporate income tax returns, VAT returns, withholding tax returns, and local business taxes. Companies must maintain accurate records, prepare and file returns within specified deadlines, and comply with local and international tax regulations. Proper tax planning and compliance are essential to avoid penalties and ensure that all tax obligations are met.