Towards the Corporate Tax "Draft

The Spanish Tax Agency (AEAT) continues to advance its digital assistance strategy. For the 2025 fiscal year (to be filed in July 2026), Form 200 consolidates aid tools that allow a "pre-calculation" based on the data held by the Administration.

Key updates and tools:

• Data Pre-population: The AEAT automatically imports tax data such as withholdings, installment payments (Form 202), and negative tax base carryforwards from previous years.
• Corporate Tax Virtual Assistant: An interactive tool to resolve doubts regarding non-accounting adjustments and tax rates.
• New Rates for SMEs: It is crucial to review the pre-calculation to correctly apply the progressive reduction. In 2025, the rate for entities with a turnover below €1M drops to 23%, with a further reduction to 21% expected in 2026 for the first €50,000 of the tax base.
• CNAE 2025: The new form requires updating the economic activity code according to the latest classification.

It shall be taken into account to calculate the Corporate Tax base, the accounting profit is not enough. We must apply adjustments for those expenses that tax regulations do not allow to be deducted:

• Fines and Penalties: No fines (traffic tickets, AEAT surcharges, or administrative sanctions) are deductible. They must be fully reversed through a positive adjustment.
• Donations and Gifts: Donations to non-profit entities are not a deductible expense (they entitle you to a tax credit on the final tax liability, not the base). "Customer entertainment" expenses are limited to 1% of the net turnover.
• Corporate Income Tax: The tax expense itself recorded in account (630) is not deductible.
• Financial Expenses: Watch out for the limit of 30% of the operating profit (with a minimum threshold of €1 million).