Summary answer: Form 202 is the self-assessment form through which companies pay the tax authorities part of the corporation tax for the current financial year in advance. Companies submit it three times a year (April, October, and December), and it is calculated in two ways: either at the rate of the most recent corporation tax return (18 per cent) or on the actual profit for the financial year. The amount paid via Form 202 is subsequently deducted on Form 200, the annual tax return.
Whether your company has just set up in Spain, you are the Spanish subsidiary of an international group, or you simply want to understand why the tax authorities charge you corporation tax before the end of the financial year, we’ll explain how it works, when it’s due and how to choose the option that best protects your cash flow.
What is Form 202?
Form 202 is the Tax Agency’s form for declaring and paying instalments on account of corporation tax, as set out in Article 40 of Law 27/2014 on Corporation Tax (LIS).
It works like an advance payment: rather than paying the full amount of tax in one go in July of the following year, the company pays part of it in instalments during the financial year itself. When Form 200 is submitted, these payments are deducted from the final tax liability. If more has been paid in advance than was due, the tax authorities will refund the difference.
For those coming from the English-speaking world, the logic is similar to that of estimated tax payments or corporate tax instalments in other countries.
Form 202 is also used by permanent establishments in Spain belonging to non-resident entities, which are subject to Non-Resident Income Tax but make their instalment payments using this same form.
Deadlines for Form 202 in 2026
For companies whose financial year coincides with the calendar year, the deadlines are the first 20 calendar days of April, October and December:
| Payment | Submission deadline | Period taken into account (basic scheme) |
|---|---|---|
| 1P | 1–20 April 2026 | 1 January – 31 March |
| 2P | 1–20 October 2026 | 1 January–30 September |
| 3P | 1–21 December 2026 | 1 January – 30 November |
In 2026, 20 December falls on a Sunday, so the deadline for the third payment is moved to Monday, 21 December. If you wish to set up a direct debit, the deadline is a few days earlier: it’s best not to leave it until the last week.
Companies whose financial year does not coincide with the calendar year also submit their returns in April, October and December, but the calculation period is adjusted to reflect the months that have elapsed in their own financial year.
Who is required to submit Form 202?
The obligation depends on the calculation method used by the company and its size:
- Companies with a positive balance on their most recent Corporation Tax return: they must submit Form 202 if the calculation results in an amount payable.
- Companies whose turnover exceeded 6,010,121.04 euros in the 12 months before the start of the financial year: they are required to calculate the payment based on their actual profit and must always submit the tax return, even if the amount due is zero or negative.
- Companies that have voluntarily opted for the taxable base scheme must also submit it by each deadline.
- Permanent establishments of non-residents: subject to the same rules as a Spanish company.
When it does not need to be submitted: if the company uses the instalment scheme and there is no tax due (for example, because the last Form 200 showed a zero tax liability or a loss), there is no obligation to submit Form 202, unless the threshold of 6 million euros is exceeded.
What about a newly formed company?
This is one of the most common queries among foreign companies setting up a subsidiary in Spain. In the first financial year, there is no previous tax return against which to calculate the 18 per cent, so under the flat-rate scheme there are normally no instalment payments. This does not mean that the tax is waived: it will simply be paid in full in the annual tax return. If the first year is set to be highly profitable, it is advisable to plan for this cash outflow.
The two methods of calculation for Form 202
This is the part that has the greatest impact on the company’s cash flow. The law allows for two systems, and choosing the right one can mean receiving thousands of euros more or less in advance over the course of the year.
Contribution scheme (Article 40.2 of the LIS)
This is the default option for most SMEs. The payment is calculated as follows:
Instalment payment = 18% × (total tax liability for the last tax year filed − deductions and allowances − withholdings and payments on account)
The ‘most recent financial year for which a return has been filed’ is the one for which the deadline for filing the return had already passed on the 1st of the month in which payment is made. In practice, for a company with a calendar financial year:
- For the April 2026 payment, Form 200 for the 2024 financial year is used.
- For the payments due in October and December 2026, Form 200 for the 2025 financial year, submitted in July 2026, is used.
Example: In July 2026, a company submitted its 2025 corporation tax return, showing a total tax liability of 40,000 euros, 2,000 euros in deductions and 1,000 euros in withholdings. The payment base is 37,000 euros, and the instalments due in October and December will be 18% × 37,000 = 6,660 euros each.
Advantage: it is simple and predictable. Disadvantage: it is based on past performance. If the company’s profits this year are significantly lower than last year’s, it will be paying tax in advance, which it will then have to wait to reclaim.
Taxable base method (Article 40.3 of the Corporate Tax Act)
The payment is calculated on the basis of the actual accumulated taxable profit for the current year: the first 3, 9 or 11 months of the financial year, depending on the deadline.
The percentage applied is calculated by multiplying the company’s tax rate by 5/7, rounded down. For example:
| Type of entity (2026) | Type of tax | Percentage of instalment payment |
|---|---|---|
| General scheme | 25% | 17% |
| Small enterprise (turnover between 1 and 10 million) | 23% | 16% |
Micro-enterprises (with a turnover of less than 1 million euros) will be subject to a progressive scale of 19 per cent and 21 per cent in 2026, whilst companies with a turnover of 10 million or more are subject to specific rules, including a minimum payment of 23 per cent on their positive accounting profit. In these cases, the calculation requires individual review.
Any tax credits, deductions, payments on account and instalments already made during the same financial year are deducted from the resulting amount.
Example: a small business (16 per cent) receives the following cumulative tax benefits in 2026:
| Payment | Cumulative taxable amount | 16 per cent of the taxable amount | Less previous payments | Amount payable |
|---|---|---|---|---|
| 1P (January to March) | €30,000 | €4,800 | €0 | €4,800 |
| 2P (January to September) | €90,000 | €14,400 | €4,800 | €9,600 |
| 3P (January to November) | €115,000 | €18,400 | €14,400 | €4,000 |
Advantage: the advance payment is based on the company’s actual earnings. Disadvantage: it requires the accounts to be kept up to date every quarter and means the tax return must be submitted by the deadline, even if the tax liability is zero.
How to choose the mode
The taxable base scheme is compulsory for companies with a turnover exceeding 6,010,121.04 euros. For all others, it is optional: companies may opt into it by submitting a registration form (Form 036) during February of the year in which they wish to apply it, or within the first two months of the financial year if this does not coincide with the calendar year. Once chosen, it remains in force for subsequent financial years until it is withdrawn using the same procedure.
This has an important practical implication: the decision for 2027 will be taken in February 2027. That is why it is advisable to review it now, at the end of the financial year, with next year’s profit forecast on the table.
Which option is best?
There is no single answer, but there is a general guideline:
- If you expect to earn less this year than last (due to a fall in sales, significant investments or a year of transition), the taxable income method usually helps you avoid paying more tax than necessary.
- If you expect to grow, the instalment option is usually more favourable for cash flow, as it calculates the advance payment on the basis of a lower past profit.
- If the business is highly seasonal – for example, if most of its profit is made in December – the base scheme may also legitimately delay payment.
In international groups, it is also necessary to take into account the parent company’s forecasts, transfer pricing and dividend planning. A preliminary simulation of both approaches is the safest way to make a decision.
What happens if you don’t submit Form 202 or submit it late?
- If you submit it late of your own accord, without being required to do so by the tax authorities: a surcharge of 1 per cent applies, plus an additional 1 per cent for each full month of delay. After 12 months, the surcharge is 15 per cent plus interest on arrears.
- If the tax authorities detect it earlier, they may impose penalties, which are higher than surcharges.
- If you are required to submit it even if the figure is zero (companies with a turnover of more than 6 million or those applying the base tax regime) and you fail to do so, you may still face a penalty, even if there is no amount due.
An incorrectly calculated instalment payment cannot simply be ‘corrected’ on Form 200: if the amount paid was less than it should have been, there may be surcharges or interest on the difference.
Model 202 in international companies: key considerations
In our experience with subsidiaries and permanent establishments of foreign groups, these are the areas that cause the most problems:
- The parent company does not budget for the advance payment: the finance team based outside Spain is not always aware that there are three interim payments during the year, and the subsidiary finds itself short of cash in October or December.
- Financial years that do not coincide with the calendar year: if the group’s financial year ends, for example, on 31 March, the deadlines remain April, October and December, but the months taken into account change.
- Exceeding the 6 million threshold without realising it: as a result of this growth, the subsidiary becomes subject to the taxable base regime and is required to submit the form at all times.
- Related-party transactions: transfer pricing adjustments affect the tax base and, consequently, the instalment payment under the standard method.
- Permanent establishments: although they are subject to IRNR, their instalment payments are made using Form 202 and follow the same timetable.
Checklist before submitting the December payment
- Please confirm which method the company is using this year (contribution or taxable base).
- For instalment payments: check the details on Form 200 for the 2025 tax year.
- Under the standard method: close the accounts for January to November and calculate the cumulative tax base.
- Subtract the instalment payments for April and October that have already been paid.
- Check whether turnover exceeds 6 million (filing is mandatory even if the figure is zero) or 10 million (specific rules and minimum payment).
- Cash flow forecasting: the 3P matures on 21 December 2026.
- Use this review to assess the most suitable approach for 2027, which will be decided in February.
Frequently Asked Questions about Form 202
What is the difference between Model 200 and Model 202?
Form 200 is the annual corporation tax return, which is normally submitted in July of the following year. Form 202 is the advance payment made during the financial year in April, October and December. The amount paid via Form 202 is deducted from Form 200.
Do you have to submit Form 202 if the amount is zero or negative?
Only if the company’s turnover exceeds 6,010,121.04 euros or if it uses the taxable base method. If it uses the tax liability method and there is no amount due, it is not compulsory to submit it.
How much do you pay on Form 202?
Under the flat-rate scheme, 18 per cent of the corporate tax liability from the most recent tax return, after deducting allowances, reliefs and withholdings. Under the taxable base scheme, a percentage (17 per cent under the general regime in 2026) of the accumulated taxable profit for the year, less any payments already made.
When is Form 202 due in December 2026?
From 1 to 21 December 2026, as the 20th falls on a Sunday.
Does a newly incorporated company have to submit Form 202?
In the first financial year, under the flat-rate scheme, there are normally no instalment payments because there is no previous tax return on which to base the calculation. You must, however, submit a return if you opt for the taxable income scheme or if your turnover exceeds 6 million.
Is it possible to change your study mode partway through the academic year?
No. The decision to opt for the taxable base method, or to opt out of it, must be notified using Form 036 during February (or within the first two months of the financial year if this does not coincide with the calendar year) and applies to the entire financial year.