Your best Option for Submitting S Corp Taxes

As we have already commented in previous articles, the s corp Tax is the faithful reflection of the company during each fiscal year. For this reason, it is important that, throughout our accounting year, we follow certain criteria so that once we start to elaborate it we do not encounter unexpected surprises.

What is the s corp Tax?

The s corp Tax is a tax that is applied to the profits obtained by mercantile companies and other legal entities during a fiscal year, it taxes the income of companies and other legal entities, resident throughout the Spanish territory. For more on this you can visit the taxfyle.com/blog/filing-s-corp-taxes-online now.

What is meant by companies resident in territory?

Resident companies are those that have been established in accordance with law, that have their registered office in Spanish territory, or that have their effective management headquarters in Spanish territory. When carrying out our s corp Tax we must take into account the following aspects:

  • Who is required to file corporate income tax? All taxpayers thereof are required to file the Corporate Tax return, regardless of whether or not they have developed activities during the tax period and whether or not income subject to the tax has been obtained.
  • When is it presented? It is presented between July 1 and 25 of each year. This year, July 25, 2020 is Saturday, so the last day to file the Corporate Income Tax return will be July 27, which is the next business day.
  • How much do you pay? The s corp Tax is a tax that is the responsibility of the central state, therefore, the same tax is applied throughout the Spanish territory, although the percentage depends on other factors, such as the type of company and its size. The general rate is 25%.
  • How to save on s corp Tax? As we have said at the beginning of this article, it is very important to emphasize that, if we carry out a neat and constant accounting throughout the year, we will have reaction time to avoid possible errors and with this we will be able to obtain an economic benefit when making our s corp tax.

Tips that will help you save on your s corp Tax:

Make the amortizations of the company, since they are reductions in the value of the assets. And, therefore, with this you can reduce your s corp Tax. Keep in mind that low-value investments can be freely amortized. Making visit to www.taxfyle.com/blog/filing-s-corp-taxes-online happens to be effective there.

Deduct impairment losses from your credits

If your clients and suppliers suppose you an expense, deduct these expenses in your accounting. Bear in mind that negative tax bases from previous years can be offset. Since invoices do not expire and have no time limit, we can use them to offset current years. You also have deductions for research and development and technological innovation activities . In the event that your company has made or plans to carry out investments in R + D + i, in order to apply this deduction, taxpayers can provide a reasoned report issued by the Ministry of Economy and Competitiveness or by a body attached to it that justify the qualification of the activity. The activities object of this deduction must involve a significant scientific or technological novelty. Having good advice can help you save on s corp Tax.