Setting up a branch in Spain requires obtaining various certificates and filing documents with the Mercantile Registry. Branches are taxed similarly to Spanish corporations, with a 30% corporate tax rate and 19% branch profits tax on remittances to the foreign head office. Tax deductions are available for business expenses, and losses can be carried forward for 18 years. Capital gains are also taxed as ordinary business income. Spain has an extensive tax treaty network.
The document discusses taxation in Pakistan, including income tax, sales tax, and corporate tax. It provides details on:
- Income tax rates ranging from 0-25% depending on taxable income for individuals, and 0-35% for corporations.
- Sales tax of 16% applied to supply of goods and services.
- Corporate tax of 35% on net taxable income of companies. Nonresidents pay 15% on royalties and 30% on other payments.
- The proposed RGST (Revenue Generating Sales Tax) would replace existing sales tax and excise regimes with a uniform 15% rate applied at each stage of production rather than just the final price.
The document provides an overview of tax regulations for the shipping industry in Argentina. Key points include:
- Shipping companies must comply with general tax regulations like income tax, VAT, and other federal/provincial taxes.
- Income from shipping activities, both domestic and international, is considered Argentine-source income for local companies.
- Foreign shipping companies are presumed to have Argentine-source income from transport to/from Argentina.
- Argentina has double taxation treaties with many countries to avoid double taxation of international shipping income.
- Other taxes that may apply include thin capitalization rules, transfer pricing rules, and a minimum presumed income tax.
The Colombian tax system includes national, regional and municipal taxes. The main national taxes are the income tax, the value added tax (VAT), the consumption tax and the debit tax (GMF). Income tax is a levy on revenues realized within the taxable year that have the potential to increase taxpayer’s net equity and are not expressly excluded. The general income tax rate for national companies and permanent establishments is 33% for 2018 and following years. An additional 4% surcharge applies in 2018 for taxpayers with taxable income over approximately USD 275,862. Free trade zone users, excluding commercial users, have an income tax rate of 20%.
The document discusses strategies used by the Rwanda Revenue Authority (RRA) to mobilize tax revenues in Rwanda. It describes introducing an online tax clearance certificate to help taxpayers access loans and conduct business more easily. It also discusses allowing small businesses with annual turnover under 200 million Rwandan francs to file and pay value added tax returns quarterly for cash flow purposes. Additionally, it covers opening bloc management offices and regional offices to reach small- and medium-sized enterprises with tax information and support their growth. The overall goal is to promote business activity and tax compliance.
Understanding Tax Compliance Requirements for Nigerian MSMEsFATE Foundation
Presentation given by Adetola Aibangbee, Associate Director, Tax Advisory Services, KPMG Nigeria at the FATE Foundation Alumni Knowledge Building Session on February 11, 2016
1) The document provides an overview of taxation in the United Kingdom, outlining various taxes such as income tax, value added tax, corporate tax, capital gains tax, and others.
2) Key details are given for each tax, including tax rates, allowances, payment deadlines, exemptions, and penalties.
3) Taxes are levied by both central and local governments in the UK, with revenue from taxes going towards public services and programs.
The document discusses several recent tax developments across Europe:
1) The European Commission ordered Ireland to recover up to €13 billion in back taxes from Apple, claiming Ireland's tax rulings with Apple constituted illegal state aid. This decision does not affect Ireland's overall tax system.
2) New rules were enacted in the Netherlands imposing country-by-country reporting requirements and transfer pricing documentation obligations on large multinational groups.
3) The Silicon Valley Tax Directors Group sent a letter to the Dutch government with suggestions to improve the Netherlands' business tax regime and maintain its competitiveness in attracting foreign investment. They expressed concerns about the EU's anti-tax avoidance directive and public country-by-country reporting proposals
The document discusses several recent tax developments across Europe:
1) The European Commission ordered Ireland to recover up to €13 billion in back taxes from Apple, claiming Ireland's tax rulings with Apple constituted illegal state aid. This decision does not affect Ireland's overall tax system.
2) New rules were enacted in the Netherlands imposing country-by-country reporting requirements and transfer pricing documentation obligations on large multinational groups.
3) The Silicon Valley Tax Directors Group sent a letter to the Dutch government with suggestions to improve the Netherlands' business tax regime and maintain its competitiveness in attracting foreign investment. They expressed concerns about the EU's anti-tax avoidance directive and public country-by-country reporting proposals
The document discusses taxation in Pakistan, including income tax, sales tax, and corporate tax. It provides details on:
- Income tax rates ranging from 0-25% depending on taxable income for individuals, and 0-35% for corporations.
- Sales tax of 16% applied to supply of goods and services.
- Corporate tax of 35% on net taxable income of companies. Nonresidents pay 15% on royalties and 30% on other payments.
- The proposed RGST (Revenue Generating Sales Tax) would replace existing sales tax and excise regimes with a uniform 15% rate applied at each stage of production rather than just the final price.
The document provides an overview of tax regulations for the shipping industry in Argentina. Key points include:
- Shipping companies must comply with general tax regulations like income tax, VAT, and other federal/provincial taxes.
- Income from shipping activities, both domestic and international, is considered Argentine-source income for local companies.
- Foreign shipping companies are presumed to have Argentine-source income from transport to/from Argentina.
- Argentina has double taxation treaties with many countries to avoid double taxation of international shipping income.
- Other taxes that may apply include thin capitalization rules, transfer pricing rules, and a minimum presumed income tax.
The Colombian tax system includes national, regional and municipal taxes. The main national taxes are the income tax, the value added tax (VAT), the consumption tax and the debit tax (GMF). Income tax is a levy on revenues realized within the taxable year that have the potential to increase taxpayer’s net equity and are not expressly excluded. The general income tax rate for national companies and permanent establishments is 33% for 2018 and following years. An additional 4% surcharge applies in 2018 for taxpayers with taxable income over approximately USD 275,862. Free trade zone users, excluding commercial users, have an income tax rate of 20%.
The document discusses strategies used by the Rwanda Revenue Authority (RRA) to mobilize tax revenues in Rwanda. It describes introducing an online tax clearance certificate to help taxpayers access loans and conduct business more easily. It also discusses allowing small businesses with annual turnover under 200 million Rwandan francs to file and pay value added tax returns quarterly for cash flow purposes. Additionally, it covers opening bloc management offices and regional offices to reach small- and medium-sized enterprises with tax information and support their growth. The overall goal is to promote business activity and tax compliance.
Understanding Tax Compliance Requirements for Nigerian MSMEsFATE Foundation
Presentation given by Adetola Aibangbee, Associate Director, Tax Advisory Services, KPMG Nigeria at the FATE Foundation Alumni Knowledge Building Session on February 11, 2016
1) The document provides an overview of taxation in the United Kingdom, outlining various taxes such as income tax, value added tax, corporate tax, capital gains tax, and others.
2) Key details are given for each tax, including tax rates, allowances, payment deadlines, exemptions, and penalties.
3) Taxes are levied by both central and local governments in the UK, with revenue from taxes going towards public services and programs.
The document discusses several recent tax developments across Europe:
1) The European Commission ordered Ireland to recover up to €13 billion in back taxes from Apple, claiming Ireland's tax rulings with Apple constituted illegal state aid. This decision does not affect Ireland's overall tax system.
2) New rules were enacted in the Netherlands imposing country-by-country reporting requirements and transfer pricing documentation obligations on large multinational groups.
3) The Silicon Valley Tax Directors Group sent a letter to the Dutch government with suggestions to improve the Netherlands' business tax regime and maintain its competitiveness in attracting foreign investment. They expressed concerns about the EU's anti-tax avoidance directive and public country-by-country reporting proposals
The document discusses several recent tax developments across Europe:
1) The European Commission ordered Ireland to recover up to €13 billion in back taxes from Apple, claiming Ireland's tax rulings with Apple constituted illegal state aid. This decision does not affect Ireland's overall tax system.
2) New rules were enacted in the Netherlands imposing country-by-country reporting requirements and transfer pricing documentation obligations on large multinational groups.
3) The Silicon Valley Tax Directors Group sent a letter to the Dutch government with suggestions to improve the Netherlands' business tax regime and maintain its competitiveness in attracting foreign investment. They expressed concerns about the EU's anti-tax avoidance directive and public country-by-country reporting proposals
The document provides information about filing taxes in Ireland, including deadlines, penalties, and tips to reduce tax bills. Some key points:
- The deadline for paper tax returns is October 31st and the deadline for online returns is November 15th. Filing late can result in penalties of 5-10% of the total tax liability.
- Individuals must file if they are self-employed, have rental income, investment income, shares/options, or other non-PAYE income.
- Taxpayers can reduce their bills by claiming all eligible tax credits, contributing to a pension, splitting income with a spouse, carrying losses forward, and considering setting up a limited company.
- Tax
This document summarizes tax reforms and rates in Pakistan over the last two decades. It shows tax-to-GDP ratios from 1990-2010 for various taxes. Major reforms included the Income Tax Ordinance of 2001 and Sales Tax Act of 1951. The National Tax Commission in 1985 recommended reducing direct tax rates and broadening the indirect tax base. Key indirect taxes are customs duties, sales tax, and central excise duty. Agricultural income tax rates in Punjab are provided. Challenges to tax collection include high inflation, corruption, and lack of mechanisms. Recommendations include increasing the tax net rather than rates and establishing institutions to monitor large businesses.
The document provides an overview of the Spanish tax system, including direct taxes like personal income tax (PIT), non-resident income tax, corporation income tax (CIT), and indirect taxes like VAT. It discusses key aspects of the PIT system such as tax rates, deductions, employment income, and foreign tax relief. It also covers CIT including the participation exemption for dividends, patent box regime, and controlled foreign company rules.
The document discusses reviewing estate plans in light of the introduction of the Residence Nil-Rate Band (RNRB), which provides an additional inheritance tax exemption for passing on a family home. Key points:
- The RNRB provides an additional £100,000 inheritance tax exemption in 2017/18, rising to £175,000 by 2020/21, for passing on a family home or downsizing.
- Up to £1 million of a married couple's estate could eventually be exempt from inheritance tax if both nil-rate bands and the RNRB are fully utilized.
- Reviewing estate plans is important to ensure the RNRB exemption can be claimed by passing the family home to direct descendants
Government Health Spending and Tax Reform in Rwanda, 2000-2013 – A Case StudyHFG Project
Rwanda provides an example of a country that has been committed to improving both its tax and health systems. Moreover, Rwanda has recognized the critical linkage between domestic resource mobilization and sustainable economic development, including increasing public financing for health.
The MAAL and the proposed Diverted Profits Tax - a comparativeJoanne Dunne
The MAAL and proposed diverted profits tax both target multinational groups over $1b in income. The MAAL applies to schemes reducing Australian tax, while the diverted profits tax applies if a transaction reduces Australian tax and increases related-party foreign tax by less than 80%. The diverted profits tax rate is 40% and applies regardless of arrangement date, while the MAAL rate is 30% and considers activities/substance. Both regimes calculate attributed income similarly but the diverted profits tax sits unclear in legislation, potentially facing double tax treaty issues.
1. The document provides a quick guide to Singapore corporate and individual tax laws for 2016. It summarizes Singapore's tax residency rules, tax rates, tax returns and assessments processes for both companies and individuals. For companies, the corporate tax rate is 17% and qualifying newly incorporated companies may receive tax exemptions on a portion of their chargeable income for their first three years. For individuals, tax rates are progressive up to 22% for residents and generally 22% for non-residents.
The document provides information about tax-related services offered by Return Touch, including registering for a PAN card, filing income tax returns, and registering businesses for VAT, CST, and service tax. It also lists the forms and tax slabs for individual and corporate income tax returns. Checklists of required documents are provided for each service to help clients with registration and compliance.
UAE introducing VAT from January 2018 and this presentation gives full information regarding VAT concepts and applicability. Drop your query to us to discuss more about VAT in UAE at vat@nrdoshi.ae
Most business activities and investments in Vietnam will be affected by the following taxes:
Corporate income tax;
Various withholding taxes;
Capital assignment profits tax;
Value added tax;
Import duties;
Personal income tax of Vietnamese and expatriate employees;
Social insurance, unemployment insurance and health insurance contributions.
There are various other taxes that may affect certain specific activities, including:
Special sales tax;
Natural resources tax;
Property taxes;
Export duties;
Environment protection tax.
All these taxes are imposed at the national level. There are no local, state or provincial taxes.
Tax forum 2016 recent tax changes and white book recommendations follow up (2)Anthony Galliano
CEO of Cambodian Investment Management and Eurocham Tax Committee Chairman, Anthony Galliano, gave a presentation at the Eurocham Cambodia Tax Forum 2016 on Recent Tax Changes and White Paper Recommendations
Trainer:
Fawad Hassan – ACA phavvad@gmail.com 0333-6036837 CFAP – 05 Advanced Taxation [Tax Year 2021]
(1) This document provides information on sales tax including the basic structure, output tax calculation, input tax adjustment, tax periods, and important SROs. (2) Key aspects covered include how to calculate output tax based on supplies, imports, time of supply, applicable tax rates, and value of supply. (3) The document also outlines which inputs are adjustable against output tax, including limitations and restrictions.
Guide "Make a French Start" : The French tax systemNicolas Ribollet
Guide "Make a French Start" : The French tax system
Mazars and Business France combined their expertise to help foreign investors and entrepreneurs who want to settle in France. Mazars has created practical guides that we hope will provide you with valuable insight to launch and grow your business in France.
The summary provides an overview of the key corporate taxes in Colombia that should be considered for business models, including income tax, VAT, excise taxes, property taxes, and more. It explains how various taxes work at the national, departmental, and municipal levels, such as income tax rates and categories, VAT rates, excise taxes on goods like fuel and carbon, and property taxes. The document also covers special tax regimes for holding companies and foreign-controlled companies.
Welcome to our guide for Taxation in Vietnam. In this guide, we hope to provide you with an overview of the key aspects of Taxation in Vietnam and answer many of the questions that foreign businesses and entrepreneurs have when making their first venture into the Vietnamese market.
The document summarizes tax issues in Vietnam discussed by the We Taxation and Transfer Pricing Sector Committee. It addresses five key areas: 1) VAT-related issues regarding VAT rates for export services and non-VAT clawbacks for failed oil and gas projects. 2) Restricted deductibility of advertising and promotional expenses. 3) Issues with tax treaty claims and treatment of capital transfers in real estate companies. 4) Foreign contractor withholding tax treatment related to warranties and distribution rights. 5) Simplifying documentation for foreign tax credits. Recommendations are provided for each area to improve tax regulations and create a more competitive investment environment.
The document provides an overview of Canada's tax system including key revenue sources, tax rates, and responsibilities of taxpayers. Personal income tax makes up about 50% of federal revenues. The tax system aims for fairness, stability, and meeting national priorities. Individuals, corporations, and trusts pay taxes and are responsible for self-assessing and filing accurate returns by the deadline.
Eurocham Cambodia held a Tax Forum in Sieam Reap, June 8th, 2018 with conjunction with the General Department of Taxation and Industry Experts. Attached are the presentations made.
The document provides information on end of year tax planning for 2011-2012, including opportunities to minimize tax liabilities before the April 5, 2012 deadline. It discusses the current tax landscape and increased efforts by HMRC to crack down on avoidance and evasion. Specific personal and business tax planning strategies are also outlined, such as income shifting between couples, pension contributions for over-65s, employing family members, and extracting profits from companies through salaries, dividends, or bonuses.
The document provides an overview of Vietnam's tax system and the key taxes applicable to foreign business activities in Vietnam. It summarizes the main taxes including Enterprise Income Tax, Value Added Tax, Import/Export Duties, Withholding Tax, and Personal Income Tax. For each tax, it outlines the taxpayers, tax rates, payment procedures, exemptions, and deductions. The document also discusses Vietnam's tax authority system and penalties for tax violations.
UAE can be used favorably as the location for the ultimate holding company for a group that is relocating to a new jurisdiction or on formation of a new publicly traded entity with worldwide activities
The document provides information about filing taxes in Ireland, including deadlines, penalties, and tips to reduce tax bills. Some key points:
- The deadline for paper tax returns is October 31st and the deadline for online returns is November 15th. Filing late can result in penalties of 5-10% of the total tax liability.
- Individuals must file if they are self-employed, have rental income, investment income, shares/options, or other non-PAYE income.
- Taxpayers can reduce their bills by claiming all eligible tax credits, contributing to a pension, splitting income with a spouse, carrying losses forward, and considering setting up a limited company.
- Tax
This document summarizes tax reforms and rates in Pakistan over the last two decades. It shows tax-to-GDP ratios from 1990-2010 for various taxes. Major reforms included the Income Tax Ordinance of 2001 and Sales Tax Act of 1951. The National Tax Commission in 1985 recommended reducing direct tax rates and broadening the indirect tax base. Key indirect taxes are customs duties, sales tax, and central excise duty. Agricultural income tax rates in Punjab are provided. Challenges to tax collection include high inflation, corruption, and lack of mechanisms. Recommendations include increasing the tax net rather than rates and establishing institutions to monitor large businesses.
The document provides an overview of the Spanish tax system, including direct taxes like personal income tax (PIT), non-resident income tax, corporation income tax (CIT), and indirect taxes like VAT. It discusses key aspects of the PIT system such as tax rates, deductions, employment income, and foreign tax relief. It also covers CIT including the participation exemption for dividends, patent box regime, and controlled foreign company rules.
The document discusses reviewing estate plans in light of the introduction of the Residence Nil-Rate Band (RNRB), which provides an additional inheritance tax exemption for passing on a family home. Key points:
- The RNRB provides an additional £100,000 inheritance tax exemption in 2017/18, rising to £175,000 by 2020/21, for passing on a family home or downsizing.
- Up to £1 million of a married couple's estate could eventually be exempt from inheritance tax if both nil-rate bands and the RNRB are fully utilized.
- Reviewing estate plans is important to ensure the RNRB exemption can be claimed by passing the family home to direct descendants
Government Health Spending and Tax Reform in Rwanda, 2000-2013 – A Case StudyHFG Project
Rwanda provides an example of a country that has been committed to improving both its tax and health systems. Moreover, Rwanda has recognized the critical linkage between domestic resource mobilization and sustainable economic development, including increasing public financing for health.
The MAAL and the proposed Diverted Profits Tax - a comparativeJoanne Dunne
The MAAL and proposed diverted profits tax both target multinational groups over $1b in income. The MAAL applies to schemes reducing Australian tax, while the diverted profits tax applies if a transaction reduces Australian tax and increases related-party foreign tax by less than 80%. The diverted profits tax rate is 40% and applies regardless of arrangement date, while the MAAL rate is 30% and considers activities/substance. Both regimes calculate attributed income similarly but the diverted profits tax sits unclear in legislation, potentially facing double tax treaty issues.
1. The document provides a quick guide to Singapore corporate and individual tax laws for 2016. It summarizes Singapore's tax residency rules, tax rates, tax returns and assessments processes for both companies and individuals. For companies, the corporate tax rate is 17% and qualifying newly incorporated companies may receive tax exemptions on a portion of their chargeable income for their first three years. For individuals, tax rates are progressive up to 22% for residents and generally 22% for non-residents.
The document provides information about tax-related services offered by Return Touch, including registering for a PAN card, filing income tax returns, and registering businesses for VAT, CST, and service tax. It also lists the forms and tax slabs for individual and corporate income tax returns. Checklists of required documents are provided for each service to help clients with registration and compliance.
UAE introducing VAT from January 2018 and this presentation gives full information regarding VAT concepts and applicability. Drop your query to us to discuss more about VAT in UAE at vat@nrdoshi.ae
Most business activities and investments in Vietnam will be affected by the following taxes:
Corporate income tax;
Various withholding taxes;
Capital assignment profits tax;
Value added tax;
Import duties;
Personal income tax of Vietnamese and expatriate employees;
Social insurance, unemployment insurance and health insurance contributions.
There are various other taxes that may affect certain specific activities, including:
Special sales tax;
Natural resources tax;
Property taxes;
Export duties;
Environment protection tax.
All these taxes are imposed at the national level. There are no local, state or provincial taxes.
Tax forum 2016 recent tax changes and white book recommendations follow up (2)Anthony Galliano
CEO of Cambodian Investment Management and Eurocham Tax Committee Chairman, Anthony Galliano, gave a presentation at the Eurocham Cambodia Tax Forum 2016 on Recent Tax Changes and White Paper Recommendations
Trainer:
Fawad Hassan – ACA phavvad@gmail.com 0333-6036837 CFAP – 05 Advanced Taxation [Tax Year 2021]
(1) This document provides information on sales tax including the basic structure, output tax calculation, input tax adjustment, tax periods, and important SROs. (2) Key aspects covered include how to calculate output tax based on supplies, imports, time of supply, applicable tax rates, and value of supply. (3) The document also outlines which inputs are adjustable against output tax, including limitations and restrictions.
Guide "Make a French Start" : The French tax systemNicolas Ribollet
Guide "Make a French Start" : The French tax system
Mazars and Business France combined their expertise to help foreign investors and entrepreneurs who want to settle in France. Mazars has created practical guides that we hope will provide you with valuable insight to launch and grow your business in France.
The summary provides an overview of the key corporate taxes in Colombia that should be considered for business models, including income tax, VAT, excise taxes, property taxes, and more. It explains how various taxes work at the national, departmental, and municipal levels, such as income tax rates and categories, VAT rates, excise taxes on goods like fuel and carbon, and property taxes. The document also covers special tax regimes for holding companies and foreign-controlled companies.
Welcome to our guide for Taxation in Vietnam. In this guide, we hope to provide you with an overview of the key aspects of Taxation in Vietnam and answer many of the questions that foreign businesses and entrepreneurs have when making their first venture into the Vietnamese market.
The document summarizes tax issues in Vietnam discussed by the We Taxation and Transfer Pricing Sector Committee. It addresses five key areas: 1) VAT-related issues regarding VAT rates for export services and non-VAT clawbacks for failed oil and gas projects. 2) Restricted deductibility of advertising and promotional expenses. 3) Issues with tax treaty claims and treatment of capital transfers in real estate companies. 4) Foreign contractor withholding tax treatment related to warranties and distribution rights. 5) Simplifying documentation for foreign tax credits. Recommendations are provided for each area to improve tax regulations and create a more competitive investment environment.
The document provides an overview of Canada's tax system including key revenue sources, tax rates, and responsibilities of taxpayers. Personal income tax makes up about 50% of federal revenues. The tax system aims for fairness, stability, and meeting national priorities. Individuals, corporations, and trusts pay taxes and are responsible for self-assessing and filing accurate returns by the deadline.
Eurocham Cambodia held a Tax Forum in Sieam Reap, June 8th, 2018 with conjunction with the General Department of Taxation and Industry Experts. Attached are the presentations made.
The document provides information on end of year tax planning for 2011-2012, including opportunities to minimize tax liabilities before the April 5, 2012 deadline. It discusses the current tax landscape and increased efforts by HMRC to crack down on avoidance and evasion. Specific personal and business tax planning strategies are also outlined, such as income shifting between couples, pension contributions for over-65s, employing family members, and extracting profits from companies through salaries, dividends, or bonuses.
The document provides an overview of Vietnam's tax system and the key taxes applicable to foreign business activities in Vietnam. It summarizes the main taxes including Enterprise Income Tax, Value Added Tax, Import/Export Duties, Withholding Tax, and Personal Income Tax. For each tax, it outlines the taxpayers, tax rates, payment procedures, exemptions, and deductions. The document also discusses Vietnam's tax authority system and penalties for tax violations.
UAE can be used favorably as the location for the ultimate holding company for a group that is relocating to a new jurisdiction or on formation of a new publicly traded entity with worldwide activities
Doing Business In Spain 2012 Borrador Modificado.Pptelenaramirezib
This document summarizes key information for doing business in Spain, including:
1. The main types of legal entities are corporations (S.A.), limited liability companies (S.L.), sole proprietorships, and branches of foreign companies.
2. Accounting and auditing requirements include maintaining statutory accounting books and depositing annual accounts and auditors' reports with the commercial registry.
3. Corporate income tax is 30% with reductions for small companies, while personal income tax ranges from 24.75-56% depending on taxable income. Losses can be carried forward for 18 years.
Following approval of the State Budget for 2014 by the Portuguese Assembly of the Republic and the reform of the corporate income tax, various changes have been made to the Portuguese tax regime, some of them of relevance to the International Business Centre of Madeira (IBCM). This presentation highlights the most relevant changes and its impact on the Madeira tax regime. Updated: January 30, 2014.
This document provides an overview of tax accounting and taxation. It discusses that tax accounting involves business strategies based on tax consequences and avoidance. It also outlines several major taxes governed by the Internal Revenue Code including income, estate, employment, and excise taxes. Key terms used in tax like tax returns, tax forms, the Internal Revenue Service, and tax planning are defined. The roles of tax returns, forms, and the IRS are summarized. Finally, it briefly outlines some basic types of taxes including proportional, progressive, regressive, direct, and indirect taxes.
Portugal offers many benefits for doing business including a highly skilled workforce, low operating costs, and a growing tech sector. There are simple processes for starting a business either online or in-person. Common business structures provide limited liability and Portugal has attractive corporate tax rates along with several exemptions. Personal income tax also has favorable regimes for residents and non-habitants. VAT applies to goods and services at standard or reduced rates.
This document provides the 2020 rankings and scores for the International Tax Competitiveness Index, which evaluates tax systems based on competitiveness and neutrality. Estonia ranks first overall due to low corporate and individual tax rates and a territorial international tax system. Italy ranks last with high taxes and complexity. Some countries saw changes from last year's rankings due to tax rate changes, including Belgium rising due to a lower corporate rate and Japan falling due to a higher VAT rate.
This document provides an overview of indirect taxes in India. It discusses key concepts like VAT and GST. Some main points:
1. It defines indirect taxes like excise duty, customs duty, sales tax, and service tax. It also explains the difference between direct and indirect taxes.
2. VAT is described as a multi-point tax system with tax credits that prevents cascading. GST is proposed to integrate more indirect taxes at central and state levels.
3. The document outlines the proposed GST model with CGST, SGST and IGST components and discusses features like dual administration and restricted cross-utilization of tax credits.
4. Key central and state taxes proposed to be
This document discusses the process of starting a new business in Spain and other European countries. It provides details on the different types of business entities in Spain, including sole proprietorships and limited liability companies. It compares the procedures and costs associated with starting a business across several European nations, finding that Spain requires 13 days and €464 on average to incorporate a company. The document concludes with recommendations from the European Union to simplify business creation across member states.
This document summarizes Minimum Alternate Tax (MAT) in India. MAT was introduced to ensure companies paying large dividends but avoiding tax through exemptions pay a minimum tax. It applies to companies and is the higher of normal tax rate or 18.5% of book profits with adjustments. Any excess MAT paid can be carried forward up to 10 years. Over time, applicability has expanded creating some uncertainty, though foreign portfolio investors are now exempt for post-2015 income.
Sherman Nigretti - Finland - corporate and tax highlights 2016Gianmauro Nigretti
Finland has a population of 5.4 million people with a capital of Helsinki. There are several forms of business organizations including general partnerships, limited partnerships, limited companies, cooperatives, and private entrepreneurs. Accounting is compulsory for all businesses and follows good practice standards. Auditing requirements depend on the size of the business. Taxes include 20% corporate tax for limited companies and cooperatives and progressive income tax for individuals. VAT applies at standard 24%, reduced 14%, and reduced 10% rates on various goods and services.
Planned changes to Polish corporate income tax (CIT) law in 2021 include:
1) Taxation of limited partnerships and taxation of limited partners similar to shareholders of capital companies.
2) Introduction of "Estonian CIT" which allows companies to not pay tax until profits are distributed and provides other benefits to promote investment.
3) Changes to the definition of "real estate company" and new mechanisms for taxing sales of shares in real estate companies.
4) Additional reporting requirements and public disclosure of tax data for some real estate companies.
Slides from IBSA Webinar - Double Tax Treaties: Asia & Europe which took place on 18 September 2014, presented by John Timpany of KPMG China and Roy Saunders of IFS Consultants. To view the webinar on demand, please visit our Bright Talk Channel at https://www.brighttalk.com/channel/11641
The document provides a comparison of taxes, permits, and regulations for founding a travel agency company across several European countries. Some key points included:
- Taxes vary by country but generally include value-added tax (VAT) of 6-25%, corporate/business taxes of 19-45%, and sales or other indirect taxes.
- Required permits and licenses to operate a travel agency include business licenses, commercial registration, minimum capital requirements ranging from €8,000-€35,000.
- Regulations for employees include standard work hours, annual leave entitlements, mandatory insurances, and employment contract terms that differ by country.
- Costs of operating a business include rent, advertising,
This document provides an overview of taxation in Uganda, outlining key types of taxes. It discusses direct and indirect taxes, then describes various taxes levied in Uganda, including business income tax, personal income tax (PAYE), value added tax, stamp duty, rental income tax, withholding tax, and tax filing requirements. The main taxes discussed are business income tax, personal income tax, value added tax, and withholding tax. It provides details on tax rates, registration requirements, payment procedures, and filing deadlines for each of these major taxes in Uganda.
Capgemini provides European tax reporting services for over 10 years for 23 European countries. They prepare over 200 tax and intrastat reports regularly. Their highly skilled tax experts analyze tax reports in local languages to ensure 100% tax compliance and on-time report submissions. Their services help clients increase profitability through optimized tax processes and focus on core business goals rather than tax compliance tasks.
The document provides an update on Italian tax law changes for spring 2017. It discusses updates to personal income tax (IRPEF) including new rates and deductions. It also covers corporate income tax (IRES) rate changes and a new optional tax (IRI) for unincorporated businesses. Finally, it summarizes changes to VAT and rules regarding tax compliance and evasion.
This document provides an overview of Indonesia's tax system, including various taxes that companies, investors, and individuals need to comply with such as corporate income tax, individual income tax, withholding taxes, VAT, customs duties, and real estate taxes. It discusses tax incentives available, tax rates and deductions for individual and corporate income taxes, withholding tax rates, branch profit tax rules, and how double taxation agreements provide relief.
Similar to Doing business in spain 2011 - Alliott Group 2011 (20)
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This document provides an overview of import regulations and requirements in Singapore. Key points include:
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- Controls and licenses apply to certain goods
Agap conference 2012 importing goods into china - caroline berube, hjm asia...Alliott Group
The document provides an overview of importing goods into China, including registration requirements, applicable taxes and duties, customs requirements, prohibited and restricted goods, quarantine requirements, labelling requirements, and where to find more information. It notes China is trying to restructure its economy to be driven more by imports through a "buy more but not sell less" tactic. It outlines import growth rates in recent years and the main imported goods.
Agap conference 2012 importing goods into australia - peter maletz, hanrick...Alliott Group
To import goods into Australia, several requirements must be met. An import declaration form must be lodged with goods, providing details of the owner, transport method, goods description, value, and applicable taxes. Some goods are prohibited, restricted, or subject to quarantine inspection and treatment. Labeling may also be required. The process takes at least one business day to clear goods once a complete, accurate form is submitted. Importers can use customs brokers and must obtain necessary registrations like an Australian Business Number. Various guides exist for specific import requirements and regulations.
Agap conference 2012 giacat consulting vietnam client case study Alliot Gro...Alliott Group
This document discusses a case study of a multinational food company client of GIACAT Consulting and Auditing in Vietnam. The client had been using other big accounting firms but sought another provider. Over 10 months, GIACAT underwent rigorous testing by the client to prove their accounting expertise, software capabilities, and staff competency. While local firms face difficulties establishing trust against big competitors, GIACAT succeeded by building reputation, professional staff, understanding the market, and gaining client trust through capabilities and reasonable fees.
Expat support in japan atsumi & saki Alliott Group 2011 Alliott Group
This document provides information on payroll regulations, income tax regulations, and employment law in Japan.
It outlines the documentation required by employers to satisfy legal payroll requirements, such as a roster of workers and wage ledger. Employers must make mandatory withholdings from employee pay including income tax, public insurance contributions, and pension plan contributions.
For income tax, a relocated employee is considered a tax resident after one continuous year living in Japan. Residents are taxed on worldwide income at rates from 5-40% while non-residents are only taxed on Japan-sourced income.
Japanese employment law mandates minimum entitlements for employees such as annual leave, maternity leave, minimum wage, and overtime pay
The document provides an update on S corporation issues and common problems. It discusses changes to built-in gains tax holding periods under the Small Business Jobs Act and user fees for requesting an S election waiver. It also summarizes common S corporation issues like reasonable compensation, loans from shareholders, health insurance deductions for 2% shareholders, and basis calculations.
Maurice tax session presentation dubai may Alliott Group conference 2011Alliott Group
Borrie & Co is a tax law firm located in Rotterdam and Amsterdam with 120 staff and 10 partners. The document discusses transfer pricing and why it is important for multinational enterprises. Transfer prices refer to prices charged in related-party transactions, such as prices for goods, services, intellectual property, and loans. The arm's length principle requires comparing related-party transactions to uncontrolled transactions to ensure profits are appropriately allocated between jurisdictions. Non-arm's length transfer prices can result in tax savings but risk scrutiny from tax authorities. The Netherlands has thin capitalization rules to prevent corporate income tax base erosion through interest deductions on related-party debt.
Jm tax session Dubai may 2011- Alliott GroupAlliott Group
Belgium does not have specific thin capitalization rules but does have two anti-avoidance rules related to debt-to-equity ratios of 1:1 and 7:1. However, Belgium encourages equity financing through notional interest deduction rules that allow companies to deduct a percentage of their equity from taxable income. This effectively lowers corporate tax rates. The notional interest deduction can be used for domestic and international tax planning such as capitalizing Belgian subsidiaries that then lend funds to foreign affiliates. Any tax benefits depend on deductibility of interest payments in other jurisdictions.
- The document analyzes the economic situation in the Eurozone, with a focus on issues like the risks facing the currency union, the sluggish economic recovery, and concerns around Spain's growth outlook.
- It argues that while a breakup of the Eurozone would threaten another Great Depression, current proposals only address symptoms rather than underlying issues and a long-term political solution is needed.
- Spain has managed to differentiate itself from other peripheral economies, but its growth outlook remains clouded by weak global demand, and adhering to its fiscal consolidation plan is paramount.
This document provides information about the Alliott Group, a global association of independent professional services firms. It announces an upcoming worldwide conference in Barcelona from October 19-22, 2011. It also provides updates on the group's finances, membership growth, plans for 2012 including a strategic review, and upcoming conferences. The group has experienced steady growth with 165 member firms in 70 countries globally.
B savage presentation - Alliott Group Barcelona 2011Alliott Group
The document provides tips on how professional service firms and their employees can win more business. It emphasizes that technical expertise alone is not enough, and that one must focus on relationship building, communication, and business development. The workshop aims to give attendees the confidence and action plan to turn relationships into business opportunities. Key recommendations include focusing on client empathy and needs rather than selling, staying visible through various marketing activities, and setting SMART objectives for key client contact and development.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
2. • SETTING UP A BRANCH
• TAXATION
• LABOUR ENVIRONMENT
3. BRANCH OF A FOREIGN COMPANY
• It is not a legal entity separate from its head
office
• The head office is fully liable for the debts of
the branch
• The arm's length principle applies to
operations between the head office and the
branch, and separate accounts must be kept
4. FORMALITIES FOR SETING UP A
BRANCH
• Obtain a certificate from the bank in Spain to the effect that the
allocated capital of the branch, if any, has been transferred;
• Obtain a certificate stating that the head office is duly incorporated
and provide a copy of its bylaws and the appointment of directors
• Certificate of the minutes of a shareholders' or board meeting of
the head office in which it resolves to set up the branch and
detailing the allocated capital (if any), objects clause and registered
office of the branch;
• File the public deed setting up the branch at the corresponding
Mercantile Registry
• Obtain a non resident taxpayer number for the foreign head office
• Obtain a taxpayer number for the branch.
5. ACCOUNTING REQUIREMENTS
• Spanish GAAP was amended to adapt to IFRS criteria
for fiscal years beginning 1 January 2008 and after.
• Annual accounts are formed by the balance sheet,
profit and loss account, cash flow situation, statement
of changes in equity (only when the company audits its
financial statements), notes to the financial statements
and the management report (only when the company
audits its financial statements).
• The directors of a company have a three-month period
after the close of the fiscal year to formulate the
accounts.
6. AUDITING REQUIREMENTS
If during two financial years two of the following
requirements are not met:
• Total assets are less than EUR 2,850,000
• Annual turnover is less than EUR 5,700,000
• The workforce is comprised of fewer than 50
employees
7. BUSINESS TAXATION
• The main national taxes are the corporate
income tax, branch profits tax and the value
added tax (VAT)
• Spain offers a special tax regime for Spanish
holding companies (ETVEs)
8. CORPORATION TAX
• Spanish resident companies are subject to
corporation tax on worldwide profits and
capital gains
• Branches are taxed on worldwide profits of
the branch
9. RATES
• The basic 30% corporate tax rate applies to
the worldwide profits of resident
corporations.
• A reduced rate of 25% applies to the first EUR
300,000 of taxable income for small and
medium-sized enterprises (i.e. companies with
annual turnover of less than EUR 10 million),
with the 30% rate applying to taxable income
exceeding EUR 300,000
10. RATES
• Branches are subject to corporate income tax at
the same rates that apply to Spanish companies
• It is a branch profits tax of 19% that applies to
profit remittances to the head office.
• The branch profits tax is not levied where the
head office of the permanent establishment is
located in the EU (unless the head office is
located in a tax haven), or in a jurisdiction that
has concluded a tax treaty with Spain.
11. DIVIDENDS
• Dividends received from resident or nonresident
companies are subject to corporate income tax, with
double tax relief available for any foreign tax paid in the
latter case.
• Under the Spanish participation exemption, dividends are
exempt if received by a Spanish entity that holds at least
5% of the shares of a foreign entity for a continuous period
of at least one year, with the foreign entity paying the
dividends subject to a tax comparable to Spanish corporate
income tax (a requirement deemed met if the entity is
resident in a country with which Spain has a tax treaty with
an exchange of information clause) and resident in a
country that is not a tax haven, with at least 85% of its
profits deriving from business activities.
12. DEDUCTIONS
• Business expenses are deductible if they are incurred
for the purpose of earning profits, and properly
recorded and documented.
• Non deductible expenses include corporate income tax,
criminal and administrative fines and penalties, or
surcharges for the late payment of taxes, gifts,
provisions for internal pension allowances, amounts
directly or indirectly remunerating equity, and
expenses for services with individuals or institutions
resident in tax havens that are not demonstrated to
correspond with an actual transaction.
13. DEPRECIATION
• Depreciation of fixed or movable assets is
based on historical cost, using straight-line
rates chosen by the company within limits set
for each industry by the Ministry of Economy
and Finance.
• There are other special methods.
14. LOSSES
• Operating losses may be carried forward for
up to 18 years.
• The carry back of losses is not permitted.
15. CAPITAL GAINS TAXATION
• Capital gains are treated as ordinary business income taxable at the
normal corporate rate of 30% (a reduced rate applies to small and
medium-size enterprises whose turnover in the previous tax year is
less than EUR 10 million).
• When a company is dissolved, the excess proceeds of the market
value of distributed assets over the book value of the shares is
considered a capital gain recognizable to shareholders.
• Under the participation exemption, capital gains derived from the
sale of a participation owned by a holding in a nonresident
company (except tax havens) are exempt if Spain has concluded a
tax treaty that includes an exchange of information clause or if the
paying entity is subject to a tax equivalent to Spanish corporate
income tax. To qualify for the exemption, the Spanish company
must hold at least 5% of the subsidiary for at least 12 continuous
months and the profits must come from foreign business activities,
amongst other requirements.
16. UNILATERAL DOUBLE TAXATION RELIEF
• Spanish domestic law grants a unilateral tax credit to
resident taxpayers for direct taxes incurred that are
similar to Spanish income taxes. Generally, the credit
will be granted in an amount equal to the lesser of the
tax payable in Spain on the income or the actual tax
incurred by the taxpayer (if a tax treaty is applicable,
the tax payable based on the treaty).
• In addition to a direct tax credit for foreign income tax
paid, a credit for underlying tax also will be available.
• Unused credits may be carried forward 10 years.
17. SPAIN TAX TREATY NETWORK
Albania Czech Republic Ecuador Kazakhstan* Russia
Algeria Korea Saudi Arabia
Argentina Egypt Kyrgyzstan Serbia
Armenia El Salvador Latvia Slovakia
■■■■ ' ■ * :■;■:;
Australia Estonia Lithuania Slovenia
Austria Fínland Luxembourg South África
Azerbayán France Georgia Macedonia Sweden Switzerland
Belarus Malaysia
Belgium Germany Malta México Tajikistan
Bolivia Greece Hungary Moldova Thailand
Bosnia-Herzegovina Morocco Trinidad & Tobago
Brazil Iceland Netherlands Tunisia
Bulgaria India Turkey
Canada Indonesia New Zealand Turkmenistán
Chile Irán Norway Ukraine
China Ireland Pakistán United Arab Emirates
Colombia Israel Philippines United Kingdom
Costa Rica Italy Poland United States
Croatia Jamaica Portugal Venezuela
Cuba Japan Romania Vietnam
*The treaty applies as from 18 August 2011.
18. TRANSFER PRICING
• Spain's transfer pricing legislation requires that transactions with
related parties be carried out on arm's length terms and that
taxpayers prepare transfer pricing documentation.
• Spain generally incorporates the OECD's transfer pricing guidelines
with respect to valuation methods.
• The main methods available to determine market prices are the
comparable uncontrolled price, the cost-plus and the resale price
methods. If none of these methods are applicable, the profit split
and the transactional net margin methods should be applied.
• Documentation of related party transactions must be maintained,
with penalties for failure to comply.
• A taxpayer may conclude an advance pricing agreement (APA) with
the tax authorities.
19. THIN CAPITALIZATION
• The thin capitalization rules apply to direct or
indirect loans between a resident and a
nonresident related party.
• A debt-to-equity ratio of 3:1 applies.
• Where the average amount of loans in a fiscal
year exceeds the 3:1 ratio, the interest on the
excess amount will be recharacterized as a
dividend and hence nondeductible.
• The thin capitalization rules do not apply to
entities in EU member states, unless the entity is
resident in a tax haven.
20. ADMINISTRATION
• Tax year
– A company's tax period is its fiscal year.
– The tax period may not exceed 12 months.
• Filing and payment
– Corporate taxpayers are required to make three
advance payments of income tax during the year: in
April, October and December
– Companies must file a tax return and pay any tax due
within the first 25 calendar days after a period of six
months following the close of the fiscal year (most
usual deadline 25 July)
21. WITHHOLDING TAXES ON DIVIDENS
• Dividends paid to a nonresident (including an individual) are subject
to a 19% withholding tax unless a lower rate applies under a tax
treaty.
• Intercompany dividend payments made to residents of other EU
member states are exempt from Spanish withholding tax (due to
the implementation of the EU Parent-Subsidiary Directive) if the
foreign parent has held at least 5% of the share capital of the
Spanish company for one year before dividends are declared or if
the one year holding period is subsequently completed. ,
• The exemption does not apply if the majority of voting rights in the
parent company is held by non-EU residents, unless the parent
company effectively carries out a business activity related to that of
its subsidiary, it is in charge of managing its subsidiary and it has the
appropriate personnel and material means, or it was incorporated
under valid economic grounds and not just to benefit from the
exemption.
22. WITHHOLDING TAXES ON INTERESTS
• Interest paid to a nonresident (including an
individual) is subject to a 19% withholding tax
unless a lower rate applies under a tax treaty.
• If the payment is made to a resident of
another EU member state, a tax exemption is
applicable.
• Interest paid to a nonresident on bank
deposits and government bonds is exempt
23. ROYALTIES
• Royalties paid to a nonresident (including an
individual) are subject to a 24% withholding
rate unless the rate is reduced by a tax treaty
• From 1 July 2011, the royalties qualify for
exemption under the EU Interest and Royalties
Directive
24. WAGE WITHHOLDING TAX
• An employer is required to withhold income
tax on salary paid to an employee.
• The rates are progressive, ranging from 24% to
45%.
• Employment income paid to a nonresident is
subject to a 24% withholding tax if the income
derives directly or indirectly from personal
activities carried out within the Spanish
territory.
25. ETVE
Business purpose:
The supervision and management of
participation in non-resident entities
26. ETVE
Participation exemption regime
• Dividends
• Other profit distributions
• Capital gains from the disposal of a qualifying interest
in non-resident companies
ARE EXEMPT FROM CORPORATE INCOME TAX
27. ETVE
Conditions to be met:
• Participation of at least 5% in the non-resident
company (or 6M€) maintained 1 year.
• The non resident company is subject to a tax
comparable to the Spanish corporate income tax (Tax
Treaty)
• At least 85% of the profits of the non-resident
company have been derived from business activities
in a foreign country other than a listed tax haven
28. ETVE
The distribution of profits by the Holding
Company to non-resident corporate or
individual shareholders
(Does not apply to listed tax havens)
IS EXEMPT FROM WITHHOLDING TAX
29. ETVE
All types of interest paid to EU resident
companies
(Does not apply to Cyprus and exempt
Luxemburg holding companies)
ARE EXEMPT FROM WITHHOLDING TAX
30. ETVE
Interest paid to EU
resident
companies exempt from
Non-resident corporate or withholding tax
individual
Dividends exempt
Spanish Holding Company from
(ETVE) withholding
Dividends and Capital tax
Gains
Exempt
Non-resident company
31. VALUE ADDED TAX
• VAT is levied on the supply of goods and the provision of services.
• Certain transactions are exempt from VAT, including services and
supplies of goods relating to insurance and financial
activities, health, education and rental of residential property.
• VAT does not apply in the Canary Islands (where there is an indirect
tax similar to VAT but with some differences, e.g. lower tax rates)
and in the Ceuta and Melilla.
• VAT taxpayers are normally entitled to deduct VAT on the goods and
services they acquire if they are used to produce other goods and
services subject to VAT or if VAT was paid on transactions related to
international trade or on deductible transactions conducted outside
Spain.
32. VALUE ADDED TAX
• The standard VAT rate is 18%. There are two
reduced rates: 8% and 4%, the latter of which
applies to basic goods.
• Registration is mandatory for all taxpayers that
carry out transactions in Spain and a special VAT
identification is required when a company carries
out intra-community transactions.
• VAT returns must be filed monthly if the turnover
in the previous period exceeds EUR 6,010,121.24
million; otherwise, quarterly filing is required.
33. TAXES ON INDIVIDUALS
• An individual is considerad a resident for tax purposes
if:
– He/she is present in Spain for more than 183 days in a
calendar year; or
– Spain is the taxpayer's main business base or the place
where his/her professional activities or economic interests
are located, either directly or indirectly; or
– The taxpayer's spouse and dependent children habitually
reside in Spain.
• Residents of Spain are subject to personal income tax
on worldwide income; nonresidents are subject to tax
only on Spanish-source income.
34. TAXES ON INDIVIDUALS
• Taxable income includes earned income (e.g.
salaries, wages and business or professional
income) and passive income (e.g. dividends,
interest and capital gains).
• Capital gains on the sale of a main residence
are exempt if certain requirements are met.
• Specific expenses are deductible from each
type of income. A deduction for social security
contributions is permitted
35. TAXES ON INDIVIDUALS
• Spain imposes personal income tax at progressive
rates ranging from 24% to 49% (the top rate
varies depending on the taxpayer's region of
residence).
• Investment income, such as dividends, interest
from bank deposits, gains on the sale of shares,
etc. obtained by a Spanish tax resident generally
is subject to a 19% tax rate for amounts up to
EUR 6,000 and 21% on the excess.
36. TAXES ON INDIVIDUALS
• An individual who is assigned to work and live
in Spain may opt to be taxed as a nonresident
for the first six years of the assignment.
• Under such an arrangement, the individual is
taxed at a flat rate of 24% on the gross
amount of the income (i.e. no deductions or
allowances are granted)
37. TAXES ON INDIVIDUALS
• To qualify for nonresident taxation, the
individual must:
– Not have been a tax resident in Spain for the
previous 10 years;
– Work in Spain for a Spanish tax resident company
or a PE of a nonresident company;
– Not derive more than EUR 600,000 of personal
employment income (otherwise, the general rate
will apply)
38. TAXES ON INDIVIDUALS
• The taxable period for individuals is the calendar
year.
• Individuals must file a tax return and pay tax due
within six months following the close of the tax
year (30 June deadline)
• The minimum employment income threshold to
file a tax return is EUR 22,000. However, an
individual with total annual household income of
at least EUR 11,200 must file a tax declaration
where income is paid by more than one employer
39. LABOUR ENVIRONMENT
• Spain maintains a system based on a labour code and
standardized employment contracts (usually
permanent)
• The Workers Statute maintains a 40-hour legal work
week but permits total hours to be distributed
irregularly over the year if such an arrangement is part
of a collective bargaining agreement.
• The Ministry of Labour and Social Affairs establishes
the minimum wage annually (in December) for the
following year (641,40€/month for 2011)
40. LABOUR ENVIRONMENT
• Social security coverage is mandatory for
employees, with social contributions paid by
both the employee and the employer.
• General contributions represent 28.3% of an
employee's wages with the employer paying
23.6% and the employee paying 4.7%.
41. LABOUR ENVIRONMENT
• When a worker is dismissed, the size of the termination
payment depends on whether the dismissal is justified or
unjustified.
• Justified dismissals, for "objective causes" (i.e.
economic, technical, organizational or production-related
reasons) require payment of 20 days salary per year worked
with the firm, up to a maximum of 12 months.
• Unjustified dismissals require payments of 45 days' salary
per year worked, with a maximum of 42 months' payment.
• No payments are required if an employee is dismissed for
disciplinary reasons and the dismissal is declared fair and
justified
42. LABOUR ENVIRONMENT
• Nationals of EEA member states (comprised of
the EU, Iceland, Lichtenstein and Norway) and
Switzerland do not need permits to work in
Spain, but EEA/Swiss nationals who will reside for
more than three months in Spain must register in
the Foreigners Central Register.
• Non-EEA employees must apply to the Ministry of
Labour and Social Affairs for work permits
• Foreigners legally working in Spain enjoy the
same rights and obligations as Spaniards