BASQUE COUNTRY AND NAVARRE: Ready for closing accounts?

During these weeks, companies are closing their 2025 accounts. A comprehensive review of the accounting and applicable tax incentives can result in significant tax savings in Corporate Tax.

Check if you have correctly applied accounting standards

Sometimes, simply applying accounting standards correctly can lead to savings. For example, you can verify if:

✓ The maximum depreciation coefficients allowed by law are being applied, or if it is possible to apply degressive depreciation on certain assets.

✓ Impairments of certain assets (bad debts, obsolete inventories...) are being accounted for, or if there are obligations that may materialize in the future (provisions).

✓ Expenses are being accounted for when they are incurred. Thus, in terms of personnel expenses, it is often possible to accrue and account for a portion of the following year's bonuses as an expense, etc.

And do not forget the adjustments in the Corporate Tax return

In other cases, incentives are not applied in accounting, but through adjustments in the Corporate Tax return (such as freedom of depreciation or accelerated depreciation for SMEs; or the special reserve for profit leveling, in the Basque Country, and the special reserve for investments, in Navarre). However, at the end of the fiscal year, the impact that these adjustments will have on the tax payment must be accounted for.

It is advisable to thoroughly review all these issues. Our professionals will analyze your accounts and help you optimize your tax bill.