What is M202 and who is required to file it?
Businesses and entities operating permanently in Spain, as well as those under an attribution of income regime that were established outside Spain but maintain a presence in the country, are required to submit M202. This form serves as an advance payment of the Corporation Tax and the Non-Resident Income Tax.
What is the M202?
M.202 applies to entities that declare income under the Corporation Tax system. Essentially, it is a way to prepay a portion of the total tax liability that will later be settled through M.200 when the full tax declaration is filed.
- Filing is mandatory for entities whose annual turnover exceeded 6.010.121,04 euros in the previous fiscal year, regardless of whether they made a profit.
- Companies below this threshold must submit M202 only if they reported a positive result in the previous year.
- Since October 2016, companies with annual revenues of 10 million euros or more are subject to a minimum payment of 23%.
When to fill out M202
M.202 must be filed three times a year, within the first twenty calendar days of April, October, and December.
- First payment: April 1–20
- Second payment: October 1–20
- Third payment: December 1–20
If the deadline falls on a weekend or public holiday, the due date is extended to the next business day.
Calculating the payment for M202
There are two methods to determine the payment amount:
1) Based on the Last Corporation Tax Return:
- Take the total tax liability from the most recent Corporation Tax return.
- Deduct any applicable credits, deductions, and withholdings.
- Apply 18% to the resulting amount to determine the installment due.
- April payment: Based on the Corporation Tax return submitted during the previous year.
- October and December payments: Based on the Corporation Tax return submitted during the current year.
2) Based on the Current Year’s Profits:
- April payment: Based on the first quarter’s profit, minus deductions and withholdings.
- October payment: Calculated on the result as of September 30.
- December payment: Based on the result as of November 30.
This method is mandatory for entities with a turnover over 6.010.121,04 euros from the previous year. Other companies may opt into this method by notifying the Tax Office in February of the year in which they wish to apply it.
How and where to submit the M202
M.202 can only be submitted online through the Spanish electronic tax filing system.
