The tax obligations of a company that you need to know

A company's tax obligations begin even before the first steps of business activity are taken. Prior to the start of the activity, the entrepreneur must assume his responsibility as part of the economic system.

Once the company is up and running, new obligations arise, which will continue until the company ceases trading. In other words, they are present throughout the entire business life, from before the start to after the end of the business and economic activity.

Because is then when a company's tax obligations are terminated, but before that, a final step is required, which is the Census Declaration of cessation of activity.

Therefore, we will explain below the different tax obligations that all companies, as well as the self-employed, have to comply with. Bearing in mind that they are divided into three different moments for three different types of subjects.

Tax obligations of a company at 3 different points in time for 3 different subjects

Before starting the business activity, both self-employed persons and companies of any type must complete the following forms for dealing with a company's first tax obligations. This will avoid problems if there is a Tax Inspectorate:

1. Forms 036 and 037The census declaration is filed through these forms and the company is identified for tax purposes. In the case of companies exempt from payment, form 036 can also be used for the following purposes be given of registration with the Economic Activities Tax (IAE).
2. Models 840 - 848These are the ones that allow taxpaying companies to register with the IAE.

Aunque los autónomos podrían dar comienzo a su actividad, las empresas constituidas como sociedades civiles, mercantiles o comunidades de bienes they should still do one more management using the model 600, for the self-assessment of the tax on Transfer of assets and documented legal acts for the incorporation of the company.

Once the company has been set up, it is time to file the VAT return, the annual declaration of operations with third parties and to pay personal income tax or corporate income tax. To do so, the following forms must be filed:

1. Model 303 y 390VAT: it is used to file quarterly and annual VAT returns, both for the self-employed and for companies of any kind.
2. Form 130 – 131 o model D - 100: to pay Personal Income Tax (IRPF) on a quarterly basis and in instalments or annually.
3. Models 202 y 200These are those that will be needed to meet the tax obligations of companies that pay corporate income tax (commercial and civil companies).
4. Form 347for making the annual declaration of transactions with third parties.

It should be borne in mind that it may also be necessary to process the 111 models y 190, where payments subject to withholding tax are made.

Finally, it is necessary to talk about a company's tax obligations at the time of closure of its activity, which are as follows:

1. Forms 036 and 037The self-employed, commercial and civil companies and communities of goods are used to cancel their business activity.
2. Models 840 - 848This is not necessary for the self-employed, but it is necessary for other companies that are subject to the Economic Activities Tax, as it allows them to deregister.

It is important, in all cases, To find out more about the deadlines for the above-mentioned procedures and the documentation that, together with the forms, must be presented in each case to comply with a company's tax obligations, consult the Tax Agency's website.