The corporate tax is the tax paid by legal entities on the income they earn during their financial year. It applies to limited companies, public limited companies, cooperatives, associations, and foundations, while personal income tax (IRPF) is levied on individuals. In 2026, the general rate remains at 25%, although small businesses may be taxed at a lower rate, and the tax return calendar for this summer has specific dates that should be noted.
Who is obliged to pay it
The tax applies to entities with their own legal personality, such as commercial companies, civil partnerships with a commercial purpose, cooperatives, associations, and foundations. Some entities without legal personality, such as temporary business unions, investment funds, pension funds, or communities of owners of common lands, are also taxed.
There are exceptions. The public sector, including the State, autonomous communities, local entities and their autonomous bodies, Social Security, or the Bank of Spain, is completely exempt and does not submit tax returns. Non-profit entities, charitable or public utility organisations, professional associations, official chambers, or trade unions enjoy a partial exemption, so they must declare the income they receive. In the Foral Community of Navarra and the Basque Country, the tax is applied according to their specific regimes, the Economic Agreement and the Economic Concert.
How the taxable base is calculated
The starting point is the accounting result, that is, the difference between income and expenses for the financial year. Adjustments must be made to this figure, as the criteria applied by the tax authorities do not always coincide with those of accounting. After these adjustments, the preliminary taxable base is obtained, which can be reduced by negative taxable bases from previous years that are pending compensation.
Then, the taxable base is multiplied by the rate to obtain the gross tax. From this amount, any bonuses and deductions that the company may qualify for are subtracted, resulting in the net tax. Finally, withholdings and advance payments made during the period are deducted. The result is the differential tax, which is what the company pays to the tax authorities.
A common case helps to understand the adjustments. If a company records an administrative fine of 3,000 euros, that expense is not tax-deductible. The difference is permanent, so in the tax return, those 3,000 euros must be added to the accounting result through a positive adjustment. A similar situation occurs with donations, gambling losses, or surcharges for submitting a tax return late without prior request.
The tax period coincides with the company's financial year and cannot exceed 12 months. Its closing date is specified in the statutes. If it is not stated, it is understood to end on December 31. Therefore, the calendar year and the tax period do not always coincide.
What rate applies in 2026
The general rate is 25%, but the regulations provide reductions for smaller companies. Micro-enterprises, with a turnover of less than 1 million euros, are taxed under a tiered scheme: 19% on the first 50,000 euros of taxable base and 21% on the remainder. Small entities move to 23%, and newly created companies can apply 15% in their first period with a positive base and in the following one, provided they meet legal requirements. Tax-protected cooperatives have their own rate, usually 20% on their cooperative results.
The rate does not explain everything. The final tax also depends on deductions, bonuses, the compensation of negative bases, and the capitalisation reserve. This reserve reduces the taxable base when the company strengthens its equity. The general reduction increases from 15% to 20% of the increase in equity, and it can grow further if the average workforce increases, with percentages of 23%, 26.5%, or 30% depending on the increase tier. The application limit is 20% of the previous positive taxable base, which rises to 25% for taxpayers with a turnover of less than 1 million euros.
Deadlines and models for submitting the tax
Companies submit two models throughout the year. Model 202 is the fractional payment. It must be submitted in April, October, and December, provided the company has obtained a positive result in its last Model 200 declaration. These payments are an advance on the tax that is settled later. The rate is 18% on the amount paid in the previous Model 200, unless the calculation is based on the base, in which case 17% applies.
Model 200 is the annual declaration. Generally, it is submitted between July 1 and 25 when the financial year coincides with the calendar year. The obligation exists even if there has been no activity during the year. Order HAC/529/2026, published in the BOE on May 29, 2026, approves the new Model 200 that incorporates this year's reductions. Since July 25, 2026, falls on a Saturday, the deadline for companies with a closing date of December 31, 2025, is extended to July 27, 2026. Those wishing to set up direct debit have a shorter deadline, from July 1 to 22, 2026.
Submission must be done online with an electronic certificate. Model 220 is used by groups of companies that are taxed in fiscal consolidation, and in that case, the parent company submits Model 220 and each company in the group submits its individual declaration in Model 200.
Submitting late has consequences. If the tax authorities have not requested the declaration, late payment interest is charged, which can reach 15% if the delay extends to a year. If there has already been a request, a fine of 100 euros may be added, along with the loss of incentives, such as compensating negative bases from previous years or applying the freedom of amortisation.
Accounting books that must be kept
Obligated companies must also keep accounting books in accordance with the Commercial Code. The daily book records all operations of the activity chronologically. The inventory and annual accounts book starts with the opening balance and records the balance sheets, at least quarterly, as well as the closing inventory and annual accounts. The corporate books include the minutes book, the register of nominative shares in public limited companies, and the register of partners in limited liability companies.
These books must be kept for at least six years from their last entry. If the company is dissolved, this obligation falls on the liquidators. Before submitting Model 200, it is advisable to reconcile the accounting with the tax result, as any difference between the two translates into adjustments that must be justified.
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