Tax form 202. Corporate tax third part payment.

December is usually quiet for many companies from a taxation point of view since it is January, the time to submit the quarterly VAT and IRPF tax returns. Still, it must be considered that some companies must submit form 202: third instalment payment on account of the corporate tax.

Who is obliged to present Form 202: third part payment of the corporate tax?

In general, and according to article 40.2 of the LIS, it will be mandatory for all companies that have profits on the last Corporate Tax of July 25. It is important not to confuse the concept of “having profit” with paying corporate tax since the corporate tax may be refunded if the part payments made are bigger than the amount to be paid (named “cuota íntegra”).

As long as the amount to be paid (“cuota íntegra”) of the last corporate tax filed was over zero, there is an obligation to file this return.
It is calculated by applying 18% to said “cuota íntegra”, and three payments are made during the year:

1. April 20, along with first-quarter taxes.
2. October 20, along with third-quarter taxes.
3. On December 20, the amount to be paid will coincide with that of the second payment of October 20.

What is the purpose of Form 202?

Form 202 is used to anticipate payments on account of corporate tax for the current year so that the amounts paid with these instalment payments, along with other possible withholdings, such as rental income or income from investments, will be deducted from the amount to be paid in the corporate tax (tax form 200) that is submitted the following July 25.

If the “cuota íntegra” amount on Form 200 is less than what has been paid with the three forms 202 over the year plus other possible withholdings, the company may request a refund of the difference paid in excess at the Tax Agency.