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The Corporate Tax includes the obligation to pay three instalments within the first 20 days in the months of April, October and December.

These payments by instalments can be made by using one of the two following methods:

Option a) amounting to 18% of the total tax liability of the last tax period.

Option b) the amount of which is calculated by applying:

This method b) will be mandatory for companies whose turnover exceeds the amount of €6 million in the twelve months before the date on which the tax periods begin.

However the method b) can be chosen (except for in the aforementioned case), in which case it must be requested in February (for firms whose business year coincides with the calendar year), and it will be used in the year when it is requested and the following years, until it is dropped.

If the option b) was requested in previous years and its use in the current year is not required, the corresponding waiver of the method must be presented in February (for companies whose business year coincides with the calendar year).

Method b) is recommended for all companies that in 2020, expect to have a significant decrease in the profits compared to 2019, seeing as the payments on account for option a), are made according to the last Corporate Tax declaration filed. They might be companies that are going into liquidation or winding up, inactive companies or firms that are going to decrease their business activities considerably.

If a company decides that it wants to use option b) or that it must file form 036 to use it or waive it, please inform us at the office.