{"id":11871,"date":"2025-01-07T14:54:24","date_gmt":"2025-01-07T13:54:24","guid":{"rendered":"https:\/\/www.augelegalfiscal.com\/?p=11871"},"modified":"2025-01-07T16:04:27","modified_gmt":"2025-01-07T15:04:27","slug":"common-mistakes-is-declaration","status":"publish","type":"post","link":"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/","title":{"rendered":"Most common errors in the Corporate Tax Declaration"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #8f2b2f;color:#8f2b2f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #8f2b2f;color:#8f2b2f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#Most_Common_Errors_in_the_Corporate_Tax_Spain_and_Andorra\" >Most Common Errors in the Corporate Tax Spain and Andorra<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#1_Errors_in_Asset_Depreciation\" >1. Errors in Asset Depreciation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#2_Incorrectly_Applied_or_Unused_Deductions\" >2. Incorrectly Applied or Unused Deductions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#3_Failure_to_Correctly_Offset_Negative_Tax_Bases\" >3. Failure to Correctly Offset Negative Tax Bases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#4_Errors_in_Transfer_Pricing_Valuation\" >4. Errors in Transfer Pricing Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#5_Incorrectly_Reporting_Installment_Payments\" >5. Incorrectly Reporting Installment Payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#6_Confusing_Criteria_Between_Corporate_Tax_and_VATIGI\" >6. Confusing Criteria Between Corporate Tax and VAT\/IGI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#7_Errors_in_Tax_Consolidation\" >7. Errors in Tax Consolidation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#8_Errors_in_the_Treatment_of_Impairments_in_Investment_Portfolios\" >8. Errors in the Treatment of Impairments in Investment Portfolios<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.augelegalfiscal.com\/en\/common-mistakes-is-declaration\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Most_Common_Errors_in_the_Corporate_Tax_Spain_and_Andorra\"><\/span><strong>Most Common Errors in the Corporate Tax Spain and Andorra<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Corporate Tax (IS) is one of the main fiscal obligations for companies. While its general structure is similar in many countries, the details of the calculation and deductions vary significantly by jurisdiction. In both Spain and Andorra, ignorance of the regulations or errors in application can result in penalties, surcharges, or the loss of tax benefits. Below, we explore the most common errors in both tax systems.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"1_Errors_in_Asset_Depreciation\"><\/span><strong>1. Errors in Asset Depreciation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The regulations establish specific criteria for asset depreciation based on their type. Applying incorrect coefficients or failing to depreciate assets when required can lead to tax differences, affecting both the taxable base and applicable deductions.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Incorrectly_Applied_or_Unused_Deductions\"><\/span><strong>2. Incorrectly Applied or Unused Deductions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Both Spain and Andorra offer a range of tax deductions (although increasingly limited), such as those for R&amp;D+i, job creation, or environmental investments. Not knowing these deductions or applying them incorrectly (e.g., failing to properly document R&amp;D expenses) can result in the loss of tax benefits or adjustments during an audit.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Failure_to_Correctly_Offset_Negative_Tax_Bases\"><\/span><strong>3. Failure to Correctly Offset Negative Tax Bases<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Companies with losses from previous years can offset them against future years, but this benefit has specific rules, requirements, and limits that must be properly applied.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_Errors_in_Transfer_Pricing_Valuation\"><\/span><strong>4. Errors in Transfer Pricing Valuation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Transactions between companies within the same group or with related partners must be valued at market prices and documented with a transfer pricing report. Failure to comply with this obligation or errors in the valuation can result in tax adjustments and penalties.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Incorrectly_Reporting_Installment_Payments\"><\/span><strong>5. Incorrectly Reporting Installment Payments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Spanish Corporate Tax requires installment payments throughout the fiscal year. Incorrectly calculating these payments can lead to late interest and surcharges. Additionally, failing to adequately account for negative tax bases or changes in the tax rate for the year can alter the calculation.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"6_Confusing_Criteria_Between_Corporate_Tax_and_VATIGI\"><\/span><strong>6. Confusing Criteria Between Corporate Tax and VAT\/IGI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For the same types of expenses, different taxes may establish different deductibility criteria (e.g., for vehicles or client-related expenses). This can result in a situation where the same type of expense is deductible for VAT\/IGI purposes but not for Corporate Tax. Failing to properly separate the applicable criteria can lead to incorrect declarations and administrative penalties.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"7_Errors_in_Tax_Consolidation\"><\/span><strong>7. Errors in Tax Consolidation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Companies that are part of a consolidated group (both in Andorra and Spain) must comply with specific criteria for joint taxation. Defining the scope of the tax group can sometimes be complex and requires compliance with formal requirements and specific communications. Neglecting this point can lead to the non-application of the regime.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"8_Errors_in_the_Treatment_of_Impairments_in_Investment_Portfolios\"><\/span><strong>8. Errors in the Treatment of Impairments in Investment Portfolios<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Impairments in the value of investments in other companies are a sensitive issue in Corporate Tax. Particularly in Spain, since the 2015 tax reform, these impairments have generally ceased to be tax-deductible, except in exceptional cases such as the liquidation or dissolution of the investee company. The regulations have undergone numerous changes, and transitional regimes may apply, complicating the fiscal and accounting tracking of such adjustments. Incorrectly applying this deduction can lead to significant tax adjustments during an audit and financial penalties. It is crucial to verify whether the impairment meets the specific tax conditions before reflecting it in the declaration.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Corporate Tax is more than just an annual declaration; it is also a tool for optimizing a company\u2019s tax burden within legal limits. In both Spain and Andorra, compliance with regulations requires a deep understanding of the specificities of each jurisdiction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At our firm, we help companies in both countries identify tax opportunities and avoid errors that may impact their profitability. If you need personalized advice, feel free to contact us.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most Common Errors in the Corporate Tax Spain and Andorra Corporate Tax (IS) is one of the main fiscal obligations for companies. While its general structure is similar in many countries, the details of the calculation and deductions vary significantly by jurisdiction. In both Spain and Andorra, ignorance of the regulations or errors in application [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12016,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[105],"tags":[],"class_list":["post-11871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/11871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/comments?post=11871"}],"version-history":[{"count":1,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/11871\/revisions"}],"predecessor-version":[{"id":11890,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/11871\/revisions\/11890"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media\/12016"}],"wp:attachment":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media?parent=11871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/categories?post=11871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/tags?post=11871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}