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 business activities, both self-employed individuals and companies, of any type, will need to complete the following forms to dealing with a company's first tax obligations. This will avoid problems if there is a Tax Inspection:

Forms 036 and 037: through them the census declaration is submitted and the company is identified for tax purposes. In the case of companies exempt from payment, model 036 can also be used for be given of Registration for the Economic Activities Tax (IAE).
Models 840 – 848These are the ones that allow taxpaying companies to register with the IAE.

Although the self-employed could start their activity, companies constituted as civil or commercial partnerships or joint ownerships they should still do further management using the model 600, for the self-assessment of the tax Property Transfer Tax and Documented legal acts upon the formation of the company.

Once the company has been set up, it is time to submit the VAT return, the annual return of transactions with third parties and pay Personal Income Tax (IRPF) or Corporation Tax. To do this, it is necessary to submit the following forms:

Model 303 and 390It is used to submit the quarterly and annual VAT returns, for both self-employed individuals and companies of any type.
Form 130 – 131 or Model D – 100 to tax Personal Income Tax (IRPF) quarterly and in instalments, or annually.
Models 202 and 200These are what will be needed to comply with the tax obligations of companies that pay Corporation Tax (limited companies and civil partnerships).
Form 347To complete the annual declaration of operations with third parties.

We must not forget that it may also be necessary to process the 111 models and 190, in cases where payments subject to withholding tax are made.

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

Forms 036 and 037They serve sole traders, limited companies, civil partnerships and unincorporated associations for deregistering their business activity.
Models 840 – 848It is not necessary for the self-employed, but it is for other companies that are subject to the Economic Activities Tax, as it allows them to de-register.

It is important, in all cases, consult the Spanish Tax Agency's website to familiarise yourself with the deadlines for managing the aforementioned procedures, as well as the documentation that, along with the forms, will need to be submitted in each case to comply with a company's tax obligations.