What is a Large Company for tax purposes: requirements, obligations and benefits

For tax purposes, for the Spanish Tax Agency, a Large Company has different rights and obligations than an SME. However, do you know what characteristics a company must meet in order to be considered a Large Company by the tax authorities? If your company is in a growth phase, you will be very interested to know. We explain everything in this article.

What does the Treasury consider a Large Company to be?

The Tax Agency considers any company, entrepreneur or professional whose turnover exceeds 6,010,121.04 euros per year to be a Large Company. The change of status is immediate, starting the following year.

How is the trading volume calculated?

The volume of transactions refers to the total amount of supplies of goods and services carried out, including those exempt from tax. This includes both transactions carried out during the year and those in which VAT has accrued, if the special cash basis scheme is not applicable.

On the other hand, this calculation does not include VAT quotas, nor the equivalence surcharge, nor the compensation received by farmers, fishermen and stockbreeders who pay taxes under the Special Regime for agriculture, stockbreeding and fishing. Also excluded are: occasional supplies of immovable property, supplies of investment goods, financial transactions exempt or not from VAT, and exempt transactions relating to investment gold when they are not normal business or professional activity of the company.

What are the consequences of acquiring Large Company status?

Acquiring the status of Large Company changes many aspects of taxation. It has implications for the deadlines and ways of filing certain self-assessments, for the calculation of corporate income tax instalments, for the way of keeping record books and for the way of receiving notifications or replying to requests made by the Tax Agency.

New obligations to the tax authorities

Immediately, the company that becomes a Large Company must:

File form 036 with the Tax Administration online. In this way, it is communicated that the company has become a Large company.
File VAT self-assessments (form 303) every month and electronically.
Submit the withholding tax forms every month, electronically by means of a recognised electronic certificate, within the first twenty calendar days of each month.
Keeping the registry books by means of the electronic supply of invoicing records (SII).
Calculate the instalments of corporate income tax according to the method provided for in the law. If the net turnover during the twelve months prior to the date on which the tax period begins has exceeded €6,000,000, these payments must be submitted online by means of a recognised electronic certificate, on form 202, using the calculation method provided for in section 3 of article 40 of the Corporate Income Tax Act.
Receive administrative communications and notifications by electronic means.
If the company must file any of the following forms of self-assessments and informative declarations, electronic filing via the Internet is obligatory, using a recognised electronic certificate: 038, 156, 159, 165, 170, 171, 179, 180, 181, 182, 184, 187, 188, 189, 190, 192, 193, 194, 195, 196, 198, 199, 200, 217, 220, 221, 231, 232, 270, 280, 282, 289, 290, 291, 296, 345, 346, 349, 411, 430, 480, 611, 616 y 720.