S Corp Tax: How You Can Find The Best Deal for Submission

The end of the year 2020 is just around the corner and most companies are already preparing to carry out the settlement of s corp Tax. So today, we are going to explain you the basic points to take into account so that closing the tax period of your company is an agile and very simple process.

What is the s corp Tax?

First of all, we are going to briefly review what the s corp Tax also known by its acronym IS refers to. This direct tax is levied on the income of companies and legal entities (with some exceptions) when it is generated. So in case you are wondering how do i file taxes for my llc s corp the options are open for you.

When is the s corp Tax filed?

Most companies close their accounts coinciding with the end of the calendar year, on December 31st. In this case, the IS must be submitted before July 25 of the coming year.

What tax rates are there?

Except for some exceptions and depending on the type of company and its fiscal address within Spanish territory, the IS tax rate can vary between the general rate of 25% and some reduced rates: 15% for entrepreneurs, 20% for cooperatives, 10% for associations and foundations and 1% for investment companies.

What models must be presented?

Model 200: this s corp tax model must not be submitted by companies that close their fiscal year on December 31, even if they have not carried out any activity, nor have they obtained income.

Model 201: this model must be presented by those companies that have a positive result in the declaration of model 200 and want to carry out the installment payment thereof.

Model 220: This is the model corresponding to the tax applicable to groups of companies.

The closure of the IS for Imagine clients

Are you a user for Accounting Management? These are the steps you have to follow to carry out the closure of the IS in the application.

  • Navigate to the “Fiscal Year Closing Processes” tab.
  • Regularization> the regularization entry is generated that reveals the result of the year. This result is automatic and shows the difference between the purchase and expense accounts and the sales and income accounts.
  • Closing> the closing entry is generated that serves to separate one financial year from another. This closing shows the vision of the financial situation of the company and its results at the specific moment.
  • Opening of the new fiscal year> this entry is made at the beginning of the new fiscal year and the recording of operations is resumed.
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