It will take effect immediately in order to ensure the path to a reduction in public deficit agreed with the European Union. In the same manner, a minimum fractional payment of 23% is established for businesses with revenues greater than ten million euros, a payment that will be of 25% for credit institutions and those engaged in the exploitation of hydrocarbon deposits.

The Council of Ministers has approved a piece of Real Decreto Ley legislation in which taxation measures are introduced aimed toward the reduction of the public deficit, with the following aims:

– Increasing public revenue in order to satisfy commitments agreed with the European Union
– Reaffirming the credibility of public finance
– Generating continuously improved confidence in the Spanish economy.

The measures are going to affect instalment payments by companies with turnover volume above ten million euros. The estimated tax-collection is estimated at some 8,300 million euros, a total due from the 9,000 largest businesses.


1.- Minimum Payment: The piece of royal decree legislation re-establishes the system of a minimum rate in the fractioned payment of Corporation Tax. The result is a greater advance payment on their taxes eventually due, which will be deducted when o they submit the relevant tax return, as per the law.

•The minimum amount in the instalment method will be 23 per cent of the positive accounting result and will be applied to those businesses having a turnover volume greater than ten million euros.

•The minimum instalment payment will be of 25 per cent of this same accounting profit, to businesses with turnover greater than ten million euros and which feature an increased taxation rate of 30 per cent in terms of Corporation Tax. Specifically, this minimum increase instalment of 25 per cent will correspond to the credit institutions and those active in explorative search of hydrocarbon deposits (excluding other activities such as refining), as detailed by the Ley legislation of the aforementioned tax.

The application of the new minimum instalment will feature a few exceptions: earnings arising from debt-release operations as a result of a creditor agreement, also those exempt earnings affecting not-for-profit organisations.

2.- Greater ratio for calculating instalment amount

Also modified, is the calculation of the instalment for enterprises with turnover greater than ten million euros, in a concrete effort to approximate it to the nominal rate of the tax. In this manner, 24 per cent of the taxable income will be applied, instead of the current 17 per cent.


This Royal Decree Law, which must be ratified by Parliament, will take effect immediately, once it is published in the Boletín Oficial del Estado (30th of September, 2016). It is instated with indefinite duration and will already affect the next payment instalments for the Corporation Tax, corresponding to the months of October and December 2016, with the aim of ensuring the path of reduction in public deficit, agreed with the European Union.