The Corporate Tax ("Impuesto de Sociedades") is the equivalent to the Income Tax ("Impuesto sobre la Renta de las Personas Físicas - IRPF") for limited liability companies (SL) or anonymous companies (SA) and even for associations, foundations, sole proprietorship companies, cooperative societies, collective societies, etc.

This tax is based on the income obtained by the companies during the previous year, for example, 2008. The tax takes into account the circumstances of each company.

Companies incorporated in Spain and whose offices are registered within Spanish territory, must submit an income tax form every year between the 1st and 25th of July, regardless of whether or not they have made money. This means that, even if a company has had no activity during last year, it still must submit the corresponding corporate tax form.

The Corporate Tax must be submitted by filling in a single form, nº 200. Previously, there used to be other forms, such as form 201 (simplified) and 225 (property holding companies) but now, there is only form 200.

The form must be submitted via the Internet for both anonymous companies and limited liability companies. When the form is submitted to the Tax Authority's online "office", you will receive a copy of your submission. This online submission doesn't need identification labels.

In order to prepare the Corporate Tax form, companies must have properly compiled the previous year’s accounting reports, ending on the 31st of December. The documents required to submit the Corporate Tax form are: the balance sheet, the profit and loss account and the statement of change in financial position. It's also worth mentioning that the accounting should be done according to the new General Accounting Plan, which has been in place since the 1st of January, 2008. The new General Accounting Plan is in line with the European Union rules and its application is compulsory for all companies, no matter their legal form.

In the form, companies must include the identity of the administrators, as well as other compulsory information.

On the other hand, companies are also required to legalize their official books and they have four months from the end of the fiscal year (30th April) to do so. The purpose of this legalization is to "seal" the information contained in these books so it cannot be manipulated later. The company has to file and keep these books, which are secret, and can sometimes be required by the Tax authorities for inspection. These books can be presented as a book with bounded pages, as an electronic medium (digital submission) or both (combined submission).

The Annual Accounts of the Company Registry must be submitted within a one month-period from when they are approved at the Shareholder's General Meeting (the meeting must be held within six months of the fiscal year's closing, so the submission can be made until July 31 for fiscal years coinciding with a calendar year).

The Law requires that administrators submit these accounts to the Company Registry for deposit and publication, so that any person can access them and know the financial situation of the company. The publication of the company's records in the Company Registry allows other companies (which may want to enter into an agreement with it), to know its financial situation and to avoid possible risks that could make the return of credit difficult or impossible.

For this reason, the Law punishes companies that don't comply with this requirement. Likewise, if a company defaults on its deposit, no documents related to the company can be registered in the Company Registry.

If, after a year from the end of the fiscal year, the accounts have not been deposited, the head of the Company Registry will close the registration and the company will not be able to register any documents until the accounts have been presented. In this way, no company can register a capital increase, change of address, or a modification of the bylaws without doing so through the Company Registry.

The Registrar has to send an alphabetical list to the Tax Authority of all the companies that didn’t submit their records. The Tax Authority can inspect any company that fails to do this.