Businesses operating in Spain are subject to several taxes, such as personal income tax (“impuesto sobre la renta de las personas físicas” or IRPF), value-added tax (VAT), corporate tax (“impuesto sobre sociedades” or IS), or nonresident income tax ( “impuesto sobre la renta de no residentes” or IRNR). Unlike VAT, which is an indirect tax, IS and IRNR are direct taxes, as they are levied on the income of a business, and the business itself pays the amount directly to the Agencia Tributaria.

If the accounting profit that the company earns is significant, the tax amount due for IS or IRNR, which are submitted using Form 200, will also be high. Because of this, some businesses choose to split payment of these taxes using Form 202, which we will discuss below.

What’s in this article?

• What is Form 202 and what is it for?
  
• Who has to file Form 202?
  
• What is the deadline for filing Form 202?
  
• Can Form 202 be deferred?
  
• How do you file Form 202?
  

What is Form 202 and what is it for?

Form 202 is a tax document that businesses fill out to pay corporate income tax or non-resident income tax in instalments.

Specifically, the Spanish government allows instalment payments to be made in a maximum of three parts. If just Form 200 is filed at the end of the year, the amount due would be the same, but it would have to be made in a single payment, and this can be a considerable outlay that has a serious impact on the company’s financial health. While this easier payment setup is one of the main reasons many businesses choose to file Form 202, filing it is not always optional. Below we’ll find out the cases where businesses need to file this form.

Who has to file Form 202?

The Agencia Tributaria (the Spanish Tax Agency) specifies when there is an obligation to make instalment payments on account of corporate income tax and non-resident income tax. This occurs in the following cases:

• If the transaction volume exceeded €6 million during the prior fiscal year, instalment payments are required regardless of whether profits were obtained from those transactions or not.
  
• If the transaction volume was less than €6 million, but in the prior fiscal year a profit was achieved.
  

If either of these two scenarios occurs, the obligation to file Form 202 applies to both Spanish companies that have to pay IS, and foreign individuals and entities that obtain income in Spanish territory and must pay IRNR.

What is the deadline for filing Form 202?

Whether you are processing this form optionally or because it’s mandatory, you need to know when Form 202 must be filed and comply with the deadlines. As mentioned earlier, the payment can be divided into three instalments, with each payment being processed on the following dates:

• The first payment is processed between 1 April and 20 April.
  
• The second payment is processed between 1 October and 20 October.
  
• The third payment is processed between 1 December and 20 December.
  

In all three cases, there are a couple of exceptions:

• If the 20th is a Saturday.
  
• If the 20th is considered a non-business day.
  

If this happens, the deadline would be postponed to the next business day.

Can Form 202 be deferred?

According to Law 58/2003, nearly any tax debt can be deferred. However, in the Official State Gazette (BOE), several exceptions are detailed, including the instalment payments for both IS and IRNR, in other words, payment of Form 202 cannot be deferred.

This doesn’t mean that the Spanish government does not allow payment of these taxes to be deferred: if only the annual tax return Form 200 is filed, then IS and IRNR can be deferred. If the payment obligation is incurred when filing Form 202, deferral is not allowed since it is an instalment payment.

How do you file Form 202?

Like any type of tax payment, the procedure can be somewhat complicated, so we have prepared a step-by-step guide to make filing Form 202 a little easier for you.

If you want to simplify things further, consider integrating tax automation and reporting solutions into your financial operations. Stripe Tax is a tool that enables you to automatically calculate and collect direct taxes on all of your sales (such as VAT, sales tax, or goods and services tax). Additionally, Tax is regularly updated to reflect legislative changes in taxation and monitors your tax obligations, notifying you if you exceed the tax filing threshold in any of the 50+ countries where it operates. (See our current list of excluded territories.)

Whether you use any of these tools or prefer to process Form 202 with manually collected data, it can only be filed electronically by accessing the official Agencia Tributaria website. This tax authority specifies how to [file Form 202 electronically], for which you will need your Cl@ve PIN or your digital certificate.

1. Under “Datos identificativos” (Identification data), enter your NIF, your full name, or company name (if you are a legal entity). Under “Devengo” (Accrual), specify the accrual period (i.e. when the period for filing the periodic self-assessment of Form 202 starts), the fiscal year start (usually 1 January), and the CNAE code (i.e. the category to which your business belongs in the National Classification of Economic Activities).

2. Under “Datos adicionales” (Additional data), tick the box that corresponds to your company’s status:

   • Fiscally protected cooperative
     
   • Company under the regime for shipping companies according to tonnage
     
   • Company benefitting from the tax incentives for small enterprises
     
   • Companies that, in the 12 months preceding the tax period, conducted transactions with a total value exceeding €6 million.
     
   • Other companies that may apply two types of taxation such as those under the Canary Islands Special Zone (“Zona Especial Canaria” or ZEC) regime.
     

3. In the same “Datos adicionales” section, tick the box corresponding to the tax rate – general, small entity, microenterprise, new entity, special tax rate, or other categories that pay the same percentage as the general rate (i.e. 25%). Then, specify the net amount of turnover the company obtained during the 12 months preceding the beginning of the tax period (i.e. the value obtained by deducting discounts, VAT, or other taxes from the amount received from the sales of products and services):

   • Amount equal to or greater than €10 million but less than €20 million
     
   • Amount equal to or greater than €20 million but less than €60 million
     
   • Amount equal to or greater than €60 million
     The box must also be ticked, if applicable, for companies where 85% of the income declared in Form 202 during the tax period comes from income eligible for tax exemptions under Articles 21 and 22 of Law 27/2014, or deductions under Article 30.2 of the same law.
     

4. Fill out the “Liquidación” (Calculation) section. This step is the most complex because it varies depending on the method you select. The first method is described in Article 40.2 of the law mentioned in the previous paragraph, while the second method is described in Article 40.3.

• First method: In box 01, you need to enter the base of the instalment payment. There are two possible cases:

  • Prior tax period, one year: In this case, the basis of the instalment payment is the total amount from the last IS or IRNR return, which is the figure obtained after applying any deductions, payments on account, withholdings, or allowances.
    
  • Prior tax period, less than one year: This situation occurs when an entity decides to change the fiscal year-end date, which determines the period for conducting accounting operations. If this applies to you, you will need to cover the immediately preceding tax periods until you reach the minimum, which according to the law is 365 days. When we talk about tax periods, we’re referring to the company’s fiscal year. While in most cases this corresponds to a calendar year, it’s not always the case. The base of the instalment payment is obtained by summing the instalments corresponding to those periods. This second case does not apply if the company started operating during the previous year.
    

In box 02, you need to enter the result obtained in the previous tax return. You only need to fill out this box if the return being processed with Form 202 is a supplementary return.

In box 03, you must specify the result of calculating 18% of the amount in box 01, which is the base of the instalment payment. This will determine the amount you need to pay. If it is a supplementary return, you need to subtract the figure obtained in box 02 from the base of the instalment payment.

• Second method: While this second method is optional in most cases, Article 40.3 of Law 27/2014 specifies two conditions that make it mandatory. You must use this method if any of the following situations apply to your company:

  • If the company’s turnover exceeded €6 million in the year prior to the tax period.
    
  • If the company is subject to the regime for shipping companies according to tonnage.
    

  Whether you use this method by choice or because it is mandatory, you must submit a census declaration to the Agencia Tributaria in February of the relevant fiscal year.

You can learn the steps to complete the second method of Form 202 below. If you use the first method, just follow the steps described above. Once you’re done, you can celebrate completing the process and skip to the end of the article if you’d like.

Note: You’ll notice that the boxes we describe are not in numerical order. Instead of arranging them by number, we’ve followed the order in which they appear on Form 202 to make it easier for you to complete your return. We explain the most relevant or complicated boxes below, but you can find more information in the Agencia Tributaria guide.

In Box 04, enter the accounting profit by subtracting the expenses from the income earned during the specified period:

• Form 202 filed during the first period: first quarter of the fiscal year
  
• Form 202 filed during the second period: first nine months of the fiscal year
  
• Form 202 filed during the third period: first eleven months of the fiscal year
  

If applicable, you must also indicate the IS accounting entry (also known as the “corporate income tax accounting entry,” which refers to the economic transactions recorded in your business’s accounting book).

In Boxes 05 and 06, indicate adjustments for corporate income tax. Specifically, Box 05 is designed for increases in both profits and losses due to IS. Conversely, Box 06 is for decreases in profits and losses due to corporate income tax.

In Box 37, enter the decreases from the revision of adjustments made by companies that were not classified as “reducida dimensión” (small businesses) during the tax periods starting in 2013 and 2014. As per Article VII of Law 16/2012, certain companies were required to specify an increase in Box 36 of Form 202. In any case, this adjustment should only be indicated if your business was classified as a “gran empresa” (large company), with a turnover equal to or greater than €10 million, during the two fiscal years specified above, and if depreciation had limited deductibility.

In Box 07, you should include the total number of increases to the profit and loss account result, excluding the adjustments specified in Box 05. Next, in Box 08, specify the figure corresponding to the decreases, excluding those already entered in Boxes 06 and 37.

In Boxes 38 and 39, which represent the total corrections, you don’t need to perform any calculations as the system calculates them automatically. Even so, to understand the origin of the figures displayed, here is the formula that is applied:

• Box 38: Box 05 + Box 07
  
• Box 39: Box 06 + Box 37 + Box 08
  

In Box 13, which pertains to the previous taxable base, you also won’t need to perform any calculations as the system handles this automatically. The formula is as follows:

• Box 13: Box 04 + Box 38 - Box 39
  

Box 44 is only completed if the capitalisation reserve detailed in Article 25 of Law 27/2014 was applied during previous fiscal years that did not qualify for a 10% reduction of the increase in shareholders’ equity. If this case applies to you, you must now add the amount that still needs to be reduced.

Box 14 is used to offset previous taxable income that is negative. In this case, you need to enter the negative taxable income from previous years.

Boxes 45 and 46 should only be completed by companies eligible to apply the incentive known as the equalisation reserve. If this applies to you, the corresponding amount is reduced in Box 46. If this reserve is reversed over the next five years, you should record the increase in Box 45.

Regarding Boxes 16 and 17, most entities apply a single percentage tax rate of 25% when paying corporate income tax. Is this applicable to your situation? Then you need to fill in both boxes: Box 16 is completed automatically, but you must calculate the amount for Box 17 yourself.

• Box 16: Box 13 - Box 44 + Box 45 - Box 46
  
• Box 17: Tax rate x (19 ÷ 20) or (5 ÷ 7) (19 ÷ 20 if you are a small company and 5 ÷ 7 if you are not)
  

If your company applies multiple tax rates for IS, you should not fill out Boxes 16 and 17, but rather Boxes 20 and 23.

• Box 20: Amount corresponding to the base of the instalment payment after applying the lower percentage tax rate
  
• Box 23: The opposite of the previous box (i.e. the base of the instalment payment after applying the higher percentage tax rate)
  

In Box 47, corresponding to allocations, you need to reverse tax-related adjustments that occurred in previous years, as specified by Article 11.12 of Law 27/2014. We refer to adjustments that involved an expense that couldn’t be deducted previously but can now be deducted in the current tax period.

Box 40 is only completed by cooperatives that are not fiscally protected. If this applies to your situation, then you should indicate the negative contributions that need to be compensated for the previous periods. Keep in mind that compensating more than 70% of the previous total tax liability is not permitted.

With regard to the equalisation reserve in Boxes 45 and 46: that tax incentive must be included as an instalment in Boxes 48 and 49. Specifically, the increase amount is added to Box 48, while the decrease amount is included in Box 49.

Box 18 is completed using a calculation that, despite involving several components, is not complicated if you apply the following formula:

• Box 18: (Box 16 × Box 17 ÷ 100) + Box 47 - Box 40 + Box 48 - Box 49
  

In Boxes 19, 21, 22, 24, and 25, the system performs the calculations automatically. Here is an explanation of how the result is obtained:

• Box 19: Box 13 - Box 44 + Box 45 - Box 46
  
• Boxes 21 and 24: (19 ÷ 20) or (5 ÷ 7) × Tax rate (one calculation or the other depending on whether you are a small company)
  
• Box 22: (Box 20 × Box 21) ÷ 100
  
• Box 25: (Box 23 × Box 24) ÷ 100
  

Only entities that are fiscally protected cooperatives complete Box 42. If this applies to you, enter the negative quotas to be offset for previous periods, ensuring that the figure does not exceed 70% of the previous total quota.

Boxes 51 and 52 are completed by companies benefitting from the equalisation reserve mentioned in Boxes 45 and 46, specifically those classified as being small businesses. If this applies to you, apply the equalisation reserve to the taxable base of the instalment payment. The corresponding increase is included in Box 51, while the reduction is entered in Box 52.

In Box 26, a calculation must be made using the following formula:

• Box 26: Box 22 + Box 35 + Box 50 - Box 42 + Box 51 - Box 52
  

Note: Except for Box 31 (for supplementary returns) and Box 33 (for companies with a turnover of €10 million or more), all other boxes must be filled out by all companies.

In Box 27, you must enter the figure corresponding to any allowance that may be applied during the tax period.

In Box 28, you must specify the amount corresponding to withholdings and advance payments made during the tax period.

In Box 29, you must add the percentage corresponding to State taxation, depending on the number of transactions that took place in a general regime territory.

In Box 30, enter the amount corresponding to payments previously made in a general regime territory during the same tax period.

In Box 31, indicate the amount corresponding to the instalment payment you previously paid if it is a supplementary return.

In Box 32, apply this formula:

• Box 32: ((Box 18 or Box 26 - Box 27 - Box 28) × (Box 29 ÷ 100)) - Box 30 - Box 31
  

Box 33 is completed only by companies with a turnover exceeding €10 million. The figure is obtained by applying 23% to the profit corresponding to the months of the calendar year, based on the tax period settled by filing Form 202.

In Box 34, add the highest figure obtained from the calculations in Boxes 32 and 33.

As we’ve just seen, filing using this second method can be a headache, but thankfully, it’s not mandatory for most companies. Overall, filling out Form 202 is not excessively complicated, but our guide has compiled the most relevant points to clarify the most common concerns.

You can use this guide when preparing your next tax return. Note that Stripe’s revenue and finance automation platform can help you simplify your financial processes, speed up the filing of returns, and reduce manual errors. If you have any further questions about how the specifics of any of the Form 202 boxes may impact your business, we recommend that you consult with your tax advisor.