For companies whose financial year coincides with the calendar year, the Corporation Tax return (Form 200) for the 2025 financial year must be submitted between 1 and 25 July 2026, both dates inclusive.
If you opt for direct debit, payment must be made between 1 and 22 July.
Filing is mandatory, even if no business activity has taken place or no income has been earned during the financial year.
For the 2025 financial year, one of the main changes to corporation tax is the reform of the capitalization reserve. Specifically, the percentage reduction in the tax base is increased from 15% to 20%, provided that the relevant requirements are met. Furthermore, the calculation of this reduction is now linked to an increase in the average workforce, which reinforces its focus on business growth. Its limit has also been amended: generally speaking, it may not exceed 20 per cent of the previous positive tax base, rising to 25 per cent for entities with a turnover of less than 1
million euros.
Secondly, changes to the tax rate have been introduced by Law 7/2024. A progressive scale has been established for entities with lower revenue, and the regime applicable to small entities and cooperatives has been adjusted. This amendment is accompanied by a transitional regime governing the adaptation to the new rates.
Furthermore, the minimum net tax liability is adjusted to reflect these changes, linking its calculation to the general tax rate using a specific formula, which necessitates a review of its impact on the effective tax rate.
At sectoral level, a new tax is introduced on the interest and commission
margins of certain financial institutions; as this is not deductible for corporation tax purposes, it gives rise to mandatory off-balance-sheet adjustments.
Furthermore, incentives under the Canary Islands Economic and Tax Regime
are expanded, incorporating new forms of investment, particularly in social
housing and lettings.
Relevant measures have also been extended, such as the freedom to write
off the cost of electric vehicles and charging infrastructure, as well as the deadlines for investments in energy self-consumption.
In addition, various resolutions and rulings from the ICAC (Canary Islands Chamber of Accountants) affecting the General Accounting Plan (PGC) have been approved.
NEWS IN THE 2025 CORPORATE TAX RETURN CAMPAIGN
Reform of the capitalisation reserve
One of the most significant changes this financial year concerns the capitalisation reserve. Until now, this incentive was essentially linked to an increase in equity. However, the reform introduced by Law 7/2024 partially alters its underlying principle.
From 2025, the general reduction will rise from 15% to 20%, but a progressive scale linked to the growth in average headcount will also be
introduced.
The reduction may reach:
- 23% when the average increase in the workforce is between 2% and 5%.
- 26.5% when the increase is between 5% and 10%.
- 30% when growth exceeds 10%.
This change is forcing many companies to rethink their tax strategy.
Recruitment policy and tax planning can no longer be treated as separate
matters.
The applicable upper limits have also been amended:
- As a rule, the reduction may not exceed 20 per cent of the previous positive tax base.
- The limit is increased to 25 per cent for entities with a turnover of less than one million euros.
Although the incentive has been improved, strict requirements remain in
place:
- The increase in equity must be maintained for three years.
- A restricted reserve must be set aside for the reduced amount.
- Proper accounting and documentary recording must be ensured.
New tax rates for micro-enterprises and ERDs
The standard rate of 25% will now coexist with a much more graduated structure for small businesses.
Micro-enterprises with a turnover of less than one million euros will be
taxed as follows in 2025:
- 21% on the first 50,000 euros of the tax base.
- 22% on the remaining amount.
The reform also includes a gradual reduction:
For micro-enterprises
- 2025 → 21% / 22%
- 2026 → 19% / 21%
- 2027 → 17% / 20%
For small enterprises (ERD)
- A phased reduction will begin, starting with a rate of 24% in 2025.
Although the measure appears favorable, it considerably increases technical
complexity. It will no longer be sufficient to apply a single fixed rate to the
tax base. It will be necessary to review:
- The exact turnover figure.
- The correct classification of the entity.
- The application of transitional regimes.
- The interaction with minimum taxation and deductions.
Changes to the minimum tax
The minimum tax is also being adjusted to reflect the new reduced rates.
For micro-enterprises and ERDs, the minimum net tax liability will be calculated by applying fifteen twenty-fifths of the relevant tax rate.
Although seemingly technical, this reform may significantly alter certain tax planning scenarios.
Many companies accustomed to a stable minimum tax rate will need to review:
- Year-end projections.
- The impact of deductions.
- Off-balance-sheet adjustments.
- Effective capacity to reduce tax liability.
Extension of incentives for sustainable investments
Freedom of depreciation
Certain incentives linked to the energy transition and electric mobility are
being maintained. Freedom of depreciation continues to apply to:
- Renewable energy self-consumption installations.
- Electric vehicles.
- Charging infrastructure.
It is advisable to check:
- Effective date of commissioning.
- Correct allocation to economic activity.
- Supporting documentation for the investment.
- Compatibility with other aid or grants.
Adaptation of Form 200 to the CNAE-2025
Form 200 has been adapted to the new CNAE-2025, approved by Royal
Decree 10/2025.
An incorrect CNAE classification may result in:
- Inconsistencies with other administrative databases.
- Issues with automated checks.
- Statistical or census-related problems.
- Risks during future inspections.
Greater automated scrutiny by Tax Authorities
The campaign incorporates new technical validations within Form 200.
Emphasis is placed on:
- Returns covering financial years of less than twelve months.
- Economic interest groups.
- Temporary joint ventures.
- Identification of participants.
For further information, please consult your tax adviser.
