Is there a penalty for paying Corporation Tax late?

Is there a penalty for paying Corporation Tax late?

Penalty for late filing

To begin with, the Tax Administration does not allow the compensation of negative Taxable Bases in returns filed out of time, in accordance with the reiterated criterion of the Central Economic-Administrative Court (Resolution 1510/2013 of April 4, 2017), which considers the compensation of negative Taxable Bases a tax option that must be exercised within the regulatory filing deadline, as we already analyzed in previous comments.

With a similar approach to that stated for the offsetting of negative taxable bases from previous years, the TEAC considers that the application of the benefit of the freedom of depreciation operates as an option (Resolution No. 01524/2017, of February 14, 2019) and therefore can only be exercised within the regulatory period for filing the return, as we already indicated in a previous commentary.

In such a way that, if a taxpayer decides in the return of a fiscal year not to take advantage of the freedom of amortization of certain assets and/or rights, subsequently he/she will no longer be able to change that option with respect to that fiscal year. However, this will not prevent him from being able to enjoy the benefit in the following years, even if the freedom of depreciation applies to the same assets and/or rights.

Late filing surcharges

1.1. Deferral: Establishment of a new term for the payment of a tax debt and its surcharges, which is granted at the latest within the month following the established due date, for which reason the taxpayer must request it before this term.

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3.3. Debts for Value Added Tax (formerly General Sales Tax), withholdings or perceptions made by the withholding or perception agent, as well as any other tax that has been collected by the taxpayer.

4.2. State in writing the reasons justifying the temporary economic-financial situation that is preventing the taxpayer from paying the tax debt, within the legal term, providing documentary evidence to support the aforementioned reason.

4.5. Attach proof of the self-assessment and payment of the administrative penalty for late payment, or otherwise, said amount will be automatically taken into account as part of the request for payment in installments.

Late penalty

The first thing you should do is to file the tax return for which you have been requested by the Tax Authorities. If you have to pay, you will have to pay a penalty of between 50% and 150% of the total debt. This will depend on:

We have already seen that if the Treasury requires us the minimum sanction in the previous case would be 560€. On the other hand, if we present it voluntarily, for example, between 3 and 6 months it would suppose only a surcharge of 150€.

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This fact is due to the fact that the AEAT has adopted as its own criterion the Resolution 1510/2013 of April 4, 2017 of the Central Economic Administrative Court (TEAC), in which apart from reaching this conclusion in the returns filed after the deadline also details other assumptions in which the compensation of negative tax bases from previous years may not be applied, as we already analyzed in this seminar on the novelties in the compensation of losses from previous years, in which we also indicated the limitations, requirements, accounting and completion of the negative tax bases in the year in which they are generated and in which they are decided to be compensated.

If we are late in filing the corporate income tax return (form 200) without a prior request from the Administration, we will have to pay the surcharges for late filing plus possible interest for late payment if the result is to be paid or a fine of 100 euros if the result is zero or to be returned.

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