Spanish corporate income tax rates range from 15% to 30%, depending on the size and age of the company. Individual income tax rates range from 24.75% to 52%, depending on taxable income amounts. Spain also levies value added tax of 4%, 10%, or 21% on most goods and services. The document provides details on various Spanish taxes, including corporate income tax, personal income tax, value added tax, property taxes, environmental taxes, and incentives for 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.
U.S. citizens and resident aliens living in Spain have several tax obligations to both Spain and the United States. They must file a Spanish personal income tax return (Modelo 100) and report foreign assets over 50,000 euros on Form 720. They also must file a U.S. individual tax return (Form 1040) reporting worldwide income but may qualify for the foreign earned income exclusion or foreign tax credit. The U.S. and Spain have a tax treaty addressing double taxation issues for tax residents of both countries.
U.S. citizens and tax residents living in Spain have several tax filing obligations. They must file Form 1040 with the IRS to report worldwide income and potentially claim foreign earned income exclusions or foreign tax credits. They must also file Spanish tax returns, including the Modelo 100 personal income tax return and Modelo 720 to report foreign assets. Additional requirements include estate and gift tax filings for assets held in Spain.
This document summarizes key information for foreign investors looking to invest in Spain in 2015. It outlines the regulated sectors for foreign investment, classifications of tax residents and non-residents, and considerations for establishing a branch or subsidiary. It also provides an overview of corporate and individual taxation, real estate investments, VAT rules, and advantages of the Canary Islands Special Zone for reduced corporate tax rates. Finally, it summarizes Spain's "Golden Visa" program which provides residence permits for foreign investors making certain minimum investments in Spain.
The German tax system consists of two main taxes: the personal income tax and value-added tax (VAT). The personal income tax applies different tax rates depending on an individual's taxable income and tax class. Income up to 8,652 euros is tax exempt. VAT is charged on all goods and services at a standard 19% rate, with some items taxed at a reduced 7% rate. For VAT, businesses can claim refunds on taxes paid for goods used in production, so the final burden is paid by the end consumer.
The Canary Islands Hub have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency.
The document outlines the tax residency rules and tax obligations for individuals in Spain, including who qualifies as a tax resident, what forms need to be filed for personal income tax and reporting foreign assets, and the various deductions and tax rates that apply. It also summarizes the tax rules for non-residents, including taxation on Spanish-source income and capital gains.
As an EU outermost region, the Canary Islands have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency (Canary Islands Hub)
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.
U.S. citizens and resident aliens living in Spain have several tax obligations to both Spain and the United States. They must file a Spanish personal income tax return (Modelo 100) and report foreign assets over 50,000 euros on Form 720. They also must file a U.S. individual tax return (Form 1040) reporting worldwide income but may qualify for the foreign earned income exclusion or foreign tax credit. The U.S. and Spain have a tax treaty addressing double taxation issues for tax residents of both countries.
U.S. citizens and tax residents living in Spain have several tax filing obligations. They must file Form 1040 with the IRS to report worldwide income and potentially claim foreign earned income exclusions or foreign tax credits. They must also file Spanish tax returns, including the Modelo 100 personal income tax return and Modelo 720 to report foreign assets. Additional requirements include estate and gift tax filings for assets held in Spain.
This document summarizes key information for foreign investors looking to invest in Spain in 2015. It outlines the regulated sectors for foreign investment, classifications of tax residents and non-residents, and considerations for establishing a branch or subsidiary. It also provides an overview of corporate and individual taxation, real estate investments, VAT rules, and advantages of the Canary Islands Special Zone for reduced corporate tax rates. Finally, it summarizes Spain's "Golden Visa" program which provides residence permits for foreign investors making certain minimum investments in Spain.
The German tax system consists of two main taxes: the personal income tax and value-added tax (VAT). The personal income tax applies different tax rates depending on an individual's taxable income and tax class. Income up to 8,652 euros is tax exempt. VAT is charged on all goods and services at a standard 19% rate, with some items taxed at a reduced 7% rate. For VAT, businesses can claim refunds on taxes paid for goods used in production, so the final burden is paid by the end consumer.
The Canary Islands Hub have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency.
The document outlines the tax residency rules and tax obligations for individuals in Spain, including who qualifies as a tax resident, what forms need to be filed for personal income tax and reporting foreign assets, and the various deductions and tax rates that apply. It also summarizes the tax rules for non-residents, including taxation on Spanish-source income and capital gains.
As an EU outermost region, the Canary Islands have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency (Canary Islands Hub)
This document discusses a research study that aims to determine the level of VAT (Value-Added Tax) awareness among 4th year business students at the University of San Jose-Recoletos. The study seeks to understand students' demographics, knowledge of VAT history/purpose/regulations, and the government agency that collects VAT. It also aims to develop proposals to improve VAT awareness. The significance of the study and how it could benefit various groups is explained. Key terms related to VAT are defined. The research design is described as using a descriptive methodology with surveys and interviews conducted at the university.
1. The document discusses Value-Added Tax (VAT) in the Philippines, including what it is, who pays it, tax rates, and invoicing/receipt requirements for VAT-registered businesses.
2. VAT is imposed on the sale, barter, exchange or lease of goods/properties and services in the Philippines at 12% of the gross selling price or gross receipts. It is also imposed on imports.
3. Businesses whose gross sales/receipts exceed 1.9 million pesos per year must register for VAT and charge VAT on sales, issue VAT invoices/receipts, and file monthly VAT returns.
The Legal 500 and The In-House Lawyer Comparative Legal Guide Ireland: Privat...Matheson Law Firm
Private Client Partner, John Gill and Private Client Solicitor, Maeve Lochrie provide an overview to private client law in Ireland. The chapter covers taxes, succession laws, wills, trusts and their structures.
This document discusses various types of business transactions under Philippine tax law and how they are classified and treated for value-added tax (VAT) purposes. It covers VAT transactions that allow or do not allow input VAT claims, zero-rated transactions, VAT-exempt transactions, and transactions with government units. Examples are provided to illustrate the VAT treatment for different transaction types.
Fiscal Regime in the Canary Islands by E&Y (Canary Islands Hub)Canary Islands Hub
Canary Islands have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency (Canary Islands Hub)
The Legal 500 and The In-House Lawyer Comparative Legal Guide Ireland: Privat...Matheson Law Firm
Private Client Partner, John Gill and Private Client Senior Associate, Maeve Lochrie provide an overview to private client law in Ireland.
The chapter broadly addresses the income and capital taxes regime for private individuals who are resident and / or domiciled in Ireland and highlights certain reliefs for resident non-domiciled individuals and certain reliefs from capital taxes.
The chapter also provides a high-level summary of Irish succession law and the establishment of certain vehicles for transferring and / or safeguarding wealth.
Matheson’s Private Client department provide a relocation service to non-Irish executives and non-Irish individuals relocating to Ireland.
Value Added Tax (VAT) is a tax on the value added to goods and services at each stage of production and distribution. The Value Added Tax Reform Act of 2005 established VAT at 12% and applies to persons or businesses with gross sales or receipts over P1.9 million per year. VAT is imposed on the sale, barter, or lease of both goods and services, as well as deemed sales such as business distributions or transfers. Certain sales are zero-rated like exports and foreign currency sales. Taxpayers compute VAT payable by subtracting allowable input tax credits from total output tax due.
This document covers principles of business taxation. It discusses major tax principles like equity and efficiency. It describes different types of taxes - direct, indirect, and how tax rates can be progressive, proportional or regressive. It also outlines tax bases, sources of tax rules, calculations for trading income and losses, capital gains tax, VAT, employee taxation, and issues around corporate residence, double taxation, tax avoidance and evasion.
This document discusses various types of business taxes in the Philippines. It covers transactions that are subject to business tax, including commercial activities involving the sale of goods and services, as well as services rendered by nonresident foreign persons. It also discusses non-business transactions like the sale of stocks and overseas communications that are subject to other percentage taxes. The document then provides examples of casual or occasional sales by those not engaged in business. It concludes with summaries of value-added tax (VAT), other percentage tax (OPT), and excise tax responsibilities and requirements for business registration and invoicing.
Nigretti Gianmauro: Chile 2016 - Corporate and Tax HighlightsGianmauro Nigretti
Chile provides several options for foreign companies to establish a local presence, including stock corporations, limited liability companies (LLCs), and branches of foreign corporations. Stock corporations require a minimum of two shareholders, while LLCs require a minimum of two partners. Both structures allow for fully foreign ownership. Branches represent the locally registered office of a foreign corporation.
Chilean law requires companies to maintain accounting books and records. Financial statements include a balance sheet, income statement, cash flow statement, and notes. Non-monetary assets must be restated for inflation. Corporations and branches pay corporate income tax of 24% on worldwide income. Individuals pay progressive personal income tax up to 40% on worldwide income after the first
The Finnish welfare system provides citizens with access to healthcare, education, social services, and unemployment benefits through a system of high taxes. The government and municipalities use tax revenue to fund these services. Healthcare is provided universally and basic education is compulsory. Additional social security is managed by Kela and provides benefits like pensions and child allowances. Finland has developed an advanced welfare system since gaining independence, though historically its GDP was very low. Taxation powers reside with the state, municipalities, and churches. Income taxes, VAT, and taxes on "sin goods" like alcohol fund the welfare system. Unemployment rates, though high for youth, have decreased overall since the 1990s recession.
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,
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.
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 Portuguese non-habitual tax resident regime is granted to individuals who become resident for tax purposes in Portugal. This regime may grant an exemption on certain foreign source income as well as a 20% tax rate on employment and self-employment income deriving from high value added activities during 10 years. It targets non-resident individuals who are likely to establish residence in Portugal. View a few standard case studies on this RPBA’s infographic.
Poland is located in Central Europe and borders several countries. Its capital is Warsaw and its official language is Polish. There are various taxes in Poland's taxation system, including corporate income tax of 19%, personal income tax with rates from 18-32%, VAT with standard and reduced rates, transaction tax on certain civil law transactions, and real estate tax. Foreign investors can acquire Polish real estate by asset deal or share deal and must follow various rules depending on their country of origin.
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%.
Business taxes can be classified in three main types:
1. Value-added taxes (VAT) are imposed on the sale of goods, properties, and services.
2. Percentage taxes are imposed on small businesses with annual sales under $750,000 and include taxes on carriers, franchises, banks, and insurance premiums.
3. Excise taxes are imposed on manufactured goods like alcohol, automobiles, tobacco, and luxury items whether produced domestically or imported.
Basic guide to acquiring a property in MallorcaJosé Martín
This document provides a basic guide to acquiring property in Mallorca, Spain. It outlines the steps to purchase including obtaining legal documentation like a NIE number within 30 days, signing a purchase contract, registering the ownership transfer, and paying various taxes. It also summarizes taxes and considerations related to owning the property like annual property taxes, income allocation if it's a secondary residence, capital gains tax, and regulations for tourist rentals.
The document summarizes investment basics and taxation rules in Venezuela. There are three legal mechanisms for buying and selling foreign currency in Venezuela, with different exchange rates and availability. Companies are subject to corporate income tax on worldwide profits at progressive rates up to 34%. Individuals are subject to personal income tax on worldwide income at progressive rates from 6-34%. Capital gains are generally included as ordinary income for both companies and individuals.
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.
This document discusses a research study that aims to determine the level of VAT (Value-Added Tax) awareness among 4th year business students at the University of San Jose-Recoletos. The study seeks to understand students' demographics, knowledge of VAT history/purpose/regulations, and the government agency that collects VAT. It also aims to develop proposals to improve VAT awareness. The significance of the study and how it could benefit various groups is explained. Key terms related to VAT are defined. The research design is described as using a descriptive methodology with surveys and interviews conducted at the university.
1. The document discusses Value-Added Tax (VAT) in the Philippines, including what it is, who pays it, tax rates, and invoicing/receipt requirements for VAT-registered businesses.
2. VAT is imposed on the sale, barter, exchange or lease of goods/properties and services in the Philippines at 12% of the gross selling price or gross receipts. It is also imposed on imports.
3. Businesses whose gross sales/receipts exceed 1.9 million pesos per year must register for VAT and charge VAT on sales, issue VAT invoices/receipts, and file monthly VAT returns.
The Legal 500 and The In-House Lawyer Comparative Legal Guide Ireland: Privat...Matheson Law Firm
Private Client Partner, John Gill and Private Client Solicitor, Maeve Lochrie provide an overview to private client law in Ireland. The chapter covers taxes, succession laws, wills, trusts and their structures.
This document discusses various types of business transactions under Philippine tax law and how they are classified and treated for value-added tax (VAT) purposes. It covers VAT transactions that allow or do not allow input VAT claims, zero-rated transactions, VAT-exempt transactions, and transactions with government units. Examples are provided to illustrate the VAT treatment for different transaction types.
Fiscal Regime in the Canary Islands by E&Y (Canary Islands Hub)Canary Islands Hub
Canary Islands have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency (Canary Islands Hub)
The Legal 500 and The In-House Lawyer Comparative Legal Guide Ireland: Privat...Matheson Law Firm
Private Client Partner, John Gill and Private Client Senior Associate, Maeve Lochrie provide an overview to private client law in Ireland.
The chapter broadly addresses the income and capital taxes regime for private individuals who are resident and / or domiciled in Ireland and highlights certain reliefs for resident non-domiciled individuals and certain reliefs from capital taxes.
The chapter also provides a high-level summary of Irish succession law and the establishment of certain vehicles for transferring and / or safeguarding wealth.
Matheson’s Private Client department provide a relocation service to non-Irish executives and non-Irish individuals relocating to Ireland.
Value Added Tax (VAT) is a tax on the value added to goods and services at each stage of production and distribution. The Value Added Tax Reform Act of 2005 established VAT at 12% and applies to persons or businesses with gross sales or receipts over P1.9 million per year. VAT is imposed on the sale, barter, or lease of both goods and services, as well as deemed sales such as business distributions or transfers. Certain sales are zero-rated like exports and foreign currency sales. Taxpayers compute VAT payable by subtracting allowable input tax credits from total output tax due.
This document covers principles of business taxation. It discusses major tax principles like equity and efficiency. It describes different types of taxes - direct, indirect, and how tax rates can be progressive, proportional or regressive. It also outlines tax bases, sources of tax rules, calculations for trading income and losses, capital gains tax, VAT, employee taxation, and issues around corporate residence, double taxation, tax avoidance and evasion.
This document discusses various types of business taxes in the Philippines. It covers transactions that are subject to business tax, including commercial activities involving the sale of goods and services, as well as services rendered by nonresident foreign persons. It also discusses non-business transactions like the sale of stocks and overseas communications that are subject to other percentage taxes. The document then provides examples of casual or occasional sales by those not engaged in business. It concludes with summaries of value-added tax (VAT), other percentage tax (OPT), and excise tax responsibilities and requirements for business registration and invoicing.
Nigretti Gianmauro: Chile 2016 - Corporate and Tax HighlightsGianmauro Nigretti
Chile provides several options for foreign companies to establish a local presence, including stock corporations, limited liability companies (LLCs), and branches of foreign corporations. Stock corporations require a minimum of two shareholders, while LLCs require a minimum of two partners. Both structures allow for fully foreign ownership. Branches represent the locally registered office of a foreign corporation.
Chilean law requires companies to maintain accounting books and records. Financial statements include a balance sheet, income statement, cash flow statement, and notes. Non-monetary assets must be restated for inflation. Corporations and branches pay corporate income tax of 24% on worldwide income. Individuals pay progressive personal income tax up to 40% on worldwide income after the first
The Finnish welfare system provides citizens with access to healthcare, education, social services, and unemployment benefits through a system of high taxes. The government and municipalities use tax revenue to fund these services. Healthcare is provided universally and basic education is compulsory. Additional social security is managed by Kela and provides benefits like pensions and child allowances. Finland has developed an advanced welfare system since gaining independence, though historically its GDP was very low. Taxation powers reside with the state, municipalities, and churches. Income taxes, VAT, and taxes on "sin goods" like alcohol fund the welfare system. Unemployment rates, though high for youth, have decreased overall since the 1990s recession.
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,
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.
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 Portuguese non-habitual tax resident regime is granted to individuals who become resident for tax purposes in Portugal. This regime may grant an exemption on certain foreign source income as well as a 20% tax rate on employment and self-employment income deriving from high value added activities during 10 years. It targets non-resident individuals who are likely to establish residence in Portugal. View a few standard case studies on this RPBA’s infographic.
Poland is located in Central Europe and borders several countries. Its capital is Warsaw and its official language is Polish. There are various taxes in Poland's taxation system, including corporate income tax of 19%, personal income tax with rates from 18-32%, VAT with standard and reduced rates, transaction tax on certain civil law transactions, and real estate tax. Foreign investors can acquire Polish real estate by asset deal or share deal and must follow various rules depending on their country of origin.
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%.
Business taxes can be classified in three main types:
1. Value-added taxes (VAT) are imposed on the sale of goods, properties, and services.
2. Percentage taxes are imposed on small businesses with annual sales under $750,000 and include taxes on carriers, franchises, banks, and insurance premiums.
3. Excise taxes are imposed on manufactured goods like alcohol, automobiles, tobacco, and luxury items whether produced domestically or imported.
Basic guide to acquiring a property in MallorcaJosé Martín
This document provides a basic guide to acquiring property in Mallorca, Spain. It outlines the steps to purchase including obtaining legal documentation like a NIE number within 30 days, signing a purchase contract, registering the ownership transfer, and paying various taxes. It also summarizes taxes and considerations related to owning the property like annual property taxes, income allocation if it's a secondary residence, capital gains tax, and regulations for tourist rentals.
The document summarizes investment basics and taxation rules in Venezuela. There are three legal mechanisms for buying and selling foreign currency in Venezuela, with different exchange rates and availability. Companies are subject to corporate income tax on worldwide profits at progressive rates up to 34%. Individuals are subject to personal income tax on worldwide income at progressive rates from 6-34%. Capital gains are generally included as ordinary income for both companies and individuals.
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.
Slovakia's corporate tax system levies a 22% tax rate on resident companies worldwide income and nonresident companies' Slovak-source income. Tax losses can be carried forward for four years. Personal income tax applies progressive rates up to 25% to residents worldwide and nonresidents' Slovak income. Value-added tax of 20% applies to goods and services, with reduced rates possible.
The new Tax reform in Latvia will come into force from January 1, 2018 and will impact both - individual and corporate tax payers in Latvia. The social tax rate will increase by 1%. Maximum turnover for all micro-enterprises is decreased to EUR 40,000.
Taxation of dividends – Get informed about whether you have to pay taxes or n...UWU Solutions, Lda.
Over the past years “Profit and Gains Ltd.” has been having a great performance. This company based in Portugal since 2009 has been expanding its business into international markets, taking advantage from the growth of some emerging markets through means of local partnerships. The international dimension is part of its DNA, since its four founding partners are of different nationalities. João is Portuguese, Carlos is Angolan, Alfonso is from Spain and Walter from Belgium. Each one of them hold 25% of the company’s capital.
For the first time, and due to the company’s good results, the four members are considering to start distributing dividends. However, their doubts about how much taxes they will pay are preventing them to go ahead with the decision. In addition to their different nationalities, João and Walter’s share of the “Profit and Gains Ltd.” capital is done through other companies they have created, so that they could invest in other companies.
In order to help these four investors and to clarify all their doubts about taxation of dividends, we will begin by analysing the overall framework of this issue, so that we can then apply the rules to the actual case.
- Learn more at http://bit.ly/1w3QYF8
The Spanish government has extended the deadline to offset tax losses from previous years to 18 years for tax periods beginning January 1st, 2012. This change allows all types of entities, including small companies, to apply the 18-year period to any tax losses pending compensation. Additionally, for 2012 and 2013, companies with over 20 million euros in annual turnover will have limits of 50% of pre-tax base for offsets if turnover is between 20-60 million, and 25% of pre-tax base if turnover exceeds 60 million.
Peru 2016 - Corporate and Tax Highlights by Gianmauro NigrettiGianmauro Nigretti
This document summarizes key information about doing business in Peru, including:
- Common forms of business organization are corporations and closed corporations. Corporations require a minimum of 25% of capital stock be paid and forbid contribution of services.
- Corporate income tax is currently 28% but will decrease to 26% by 2019. Resident companies pay tax on worldwide income.
- Individuals are taxed progressively up to 30% on income exceeding 45 times the annual tax unit. Domiciled individuals pay tax on global income while non-domiciled pay only on Peruvian source income.
- Peru has signed numerous double taxation treaties and is negotiating more. VAT of 18% applies to most goods
The document summarizes corporate and personal tax rates in the United Kingdom and Luxembourg. In the UK, resident companies are taxed on worldwide profits at rates of 20-26% depending on profits, while non-resident companies are taxed on UK branch profits. Personal tax rates in the UK range from 20-50% depending on income levels. In Luxembourg, resident companies are taxed on worldwide income at a rate of 21% plus surcharges, while non-resident companies with a permanent establishment pay tax on Luxembourg-source income. Tax incentives are available in Luxembourg for investments supporting economic development.
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.
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 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.
The summary provides an overview of Colombia's tax system:
1. The main national taxes are the income tax of 25%, income tax for equality (CREE) of 9%, value added tax (VAT) of 16%, and debit tax which will be eliminated by 2022.
2. Municipal taxes include the industry and commerce tax (ICA) ranging from 0.2-1.4% and real estate tax from 0.3-3.3%.
3. The taxable base for income tax can be determined using the ordinary system, presumptive income system, or equity comparison system. Small companies benefit from reduced income tax rates during their first years of operation.
The newsletter summarizes recent tax changes in France that will impact businesses. It outlines reductions to the corporate tax rate over four years to 28% and changes to dividend tax rates. It also discusses the introduction of income tax collected at source from 2018, modifications to vehicle tax depreciation deductions favoring electric vehicles, and an extension of favorable tax treatment for expatriate employees relocating to France post-Brexit.
Taxes are financial charges imposed by the government on persons and entities to raise revenues needed to fund government operations and services. There are several types of taxes including income tax, value-added tax, property tax, and excise tax. Taxes are collected by the Bureau of Internal Revenue and local government and are the primary means for governments to generate revenues to support expenditures. The tax system in the Philippines covers both national and local taxes and aims to be uniform, equitable and progressive.
All individuals (not companies) who exercise a professional activity, such as lawyers, economists, accountants, solicitors, notaries, architects and translators, for example, are obliged to issue their invoices with an amount to be withheld by the receiver of the invoice.
The 2016 Moroccan budget law introduced several changes to VAT:
1) It allows agribusiness firms to claim a notional VAT credit on local purchases of unprocessed agricultural products based on a ratio of past transactions.
2) It exempts importation of large aircraft, aircraft equipment, and dismantling services from VAT.
3) It exempts importation of railway equipment and trains from VAT.
4) It requires all companies except those under the flat tax to file VAT returns and payments electronically starting in 2017.
The document summarizes key tax measures and issues in Italy's tax system. Some of the major changes include an increase in the standard VAT rate from 21% to 23% by October 2012, a new deduction for corporate equity allowing companies to deduct a percentage of increased equity, and the abolition of time limits for carrying forward tax losses. A new 20% flat tax rate was also introduced on income from financial investments.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
3. Country Tax Guide
Spain
Facts and figures as presented are correct as at 4 April 2014.
Corporate Income Taxes
Spanish resident businesses are subject to taxation on their worldwide taxable
income. Non-resident businesses are subject to tax on their Spanish source
taxable income only.
A company is considered Spanish tax resident if it is either:
• Incorporated in Spain, or
• Carries on business in Spain and has either its central management or
registered office there.
Any company located in a country or territory listed by the Spanish authorities
as a tax haven is considered a resident of Spain at any time that it has rights
that are fulfilled in Spain, or during any period when its main activity is carried
on in Spain or its main assets (whether held directly or indirectly) are located
in Spain. However, a company may prove that its principal place of business
is effectively outside Spain and that it was incorporated for valid business
purposes other than the simple management of securities or other assets.
The countries and territories qualifying as tax havens are listed in Royal Decree
1080/1991, 5 July 1991.
The general tax rate applicable to resident companies and permanent
establishments of non-resident companies is 30%.
A reduced tax rate of 25% applies to small enterprises with a net annual profit
not exceeding €300,000. Profit above this sum is taxed at the general rate. To
qualify, companies (including group companies) must have shown a turnover
of less than €10m in the previous tax year. The reduced rate is available for a
further three years to companies which previously held small enterprise status
and have now exceeded the €10m turnover threshold.
For the 2011 to 2014 tax years, micro-enterprises (including group companies)
with annual turnover of less than €5m and fewer than 25 staff are taxed at a
rate of 20% on the first €300,000 of profit and 25% on the balance.
New companies established from 1 January 2013 benefit from the following
reduced tax rates for the first year in which the company makes a profit:
• 15% on taxable income up to €300,000, and
• 20% on taxable income exceeding €300,000.
Taxable income must generally include any capital gains. Capital losses can be
used to reduce any current year capital gains.
4. Tax losses can be carried forward up to 18 years, but may not be carried
back. Companies with turnover of at least €20m are limited on the losses
which they can offset against income. For tax years 2012 to 2015 the annual
limit is 50% of taxable income for companies with turnover of at least €20m
but less than €60m, and 25% of taxable income for companies with turnover
of at least €60m. A change in company ownership will not generally interfere
with a loss carry-forward.
Corporate groups can lodge a consolidated tax return including all subsidiaries
that are at least 75% owned. All transactions within a consolidated group are
ignored for income tax purposes.
The tax year ends on 31 December. Tax returns are generally due for filing by 25
July following the tax year (ie for tax year 2014, by 25 July 2015). However,
companies can apply to use a different accounting period, which means tax
return filing date will correspond with the end of their fiscal year (ie the return is
due for filing within 25 days of the approval of the accounts, which in turn must
occur within six months of the financial year end).
Corporate income tax is payable in advance on 20 April, 20 October and 20
December. The amount to be paid is computed by applying a rate to the tax
liability before applying overpayments from the prior year’s return. The rate is
approved annually, and has been 18% since 2010.
A compulsory alternative procedure for computing advance payments applies
to companies whose yearly turnover exceeds €6,010,121.04 (although other
companies can apply to use this procedure by February of each year). The applicable
rate for the alternative procedure is also determined annually in the Finance Law, and
ranges from 21% for turnover up to €10m to 29% for turnover exceeding €60m.
Personal Taxes
Spanish resident individuals are subject to tax on their worldwide taxable
income. Non-resident individuals are subject to tax on their Spanish source
taxable income only.
The rates and tax brackets for 2014 (ie tax returns due for filing in 2015),
including a supplementary tax of between 0.75% and 7%, are as follows:
Taxable Income Tax Rate
€1 – €17,707.19 24.75%
€17,707.20 – €33,007.19 30%
€33,007.20 – €53,407.19 40%
€53,407.20 – €120,000.19 47%
€120,000.20 – €175,000.19 49%
€175,000.20 – €300,000.20 51%
above €300,000.20 52%
5. Country Tax Guide
Spain
These tax rates represent a combination of national and provincial taxes (ie taxes
levied by Autonomous Communities). Some regions have higher tax rates, which
means that the maximum tax rate is higher. For example, the maximum tax rate
is 55% for Andalucia, and 56% for Catalonia.
For savings income (which includes passive income such as interest, dividends
and capital gains), the following rates, including a supplementary charge of
between 2% and 6%, apply for the 2014 tax year:
Savings Net Tax Base Tax Rate
€0 – €6,000 21%
€6,001 – €24,000 25%
above €24,000 27%
However, the first €1,500 is exempt on savings income arising from stocks and
shares owned for at least two months.
For non-residents, the rate is 21%.
Capital gains realised from assets sold within one year of ownership are taxed
as for ordinary income. Gains realised from the sale of a taxpayer’s main private
residence are exempt; however, this applies to Spanish residents only, which
has been challenged by the European Court of Justice as discriminating against
non-residents. Gains realised on certain shares purchased in newly or recently
established companies are also exempt.
Capital losses can be used to reduce any current year capital gains. Capital
losses cannot be offset against income and vice versa.
No deductions are permitted for employment income obtained by non-residents
without a permanent establishment (PE) in Spain, other than certain charitable
donations recognised by statute. Withholding tax paid on a taxable event is
deducted from the overall tax liability.
Gift and inheritance tax rates may vary between Autonomous Communities and are
based on the degree of family relationship between the beneficiary and benefactor.
Under national legislation, rates (after reductions) are on a sliding scale ranging from
7.65% to 34%, depending on the value of the gift/estate received by the beneficiary.
A wealth tax, which had been abolished in 2008, has initially been reintroduced
for 2011 to 2014 only. For residents, the tax applies to worldwide assets; for non-
residents it applies to Spanish assets. The first €700,000 of assets are excluded;
after that, rates of between 0.2% and 2.5% apply through eight bands.
Income taxation, including both the wealth tax and regular income tax, is
capped at 60% of taxable income. The Autonomous Communities have the
legal authority to vary the applicable rate and accordingly the wealth tax will not
necessarily apply uniformly in all regions of Spain.
6. Employment Related
Costs and Taxes
Social security costs
Employers and employees are required to make social security contributions of around
31% and 6.36%, respectively, on maximum monthly salary of up to €3,597.
Fringe benefits
Resident and non-resident employees are liable to tax on fringe benefits earned
through their employment. The market value of the fringe benefit is added to the
employee’s salary; the tax is then withheld at source by the employer as payroll tax.
Pensions and superannuation
Employers’ compulsory contributions are considered fringe benefits enjoyed
by employees and are subject to income tax. Employers’ contributions are not
deductible from the employers’ taxable income.
Employees’ compulsory contributions to pension plans are deductible up to
certain limits: €10,000 for employees under 50 years old, and €12,500 for
employees 50 years or older.
Withholding tax
Domestic payments
Dividend, interest and royalty payments are generally subject to a 21%
withholding tax.
There is no withholding tax on dividends paid to a company that has a share
equal to or above 5% or the paying company’s capital, where this share has
been held over the previous year.
Payments abroad
Dividend and interest payments made abroad are generally subject to a 21%
withholding tax. Royalty payments are taxed at 24.75%.
Dividend and royalty payments made to connected corporate recipients within
the EU are generally exempt.
For payments made to recipients in countries with which Spain has a double tax
treaty, the rates of withholding tax may be reduced under the terms of the treaty.
7. Country Tax Guide
Spain
Value Added Tax
(VAT)
VAT is levied on the supply of goods and services in Spain and on the
importation of goods into Spain.
Trading entities which are required to be registered for VAT must generally charge
their customers VAT of 21% on the value of their supplies. VAT registration is
mandatory for all enterprises supplying goods and services in Spain.
Some supplies are taxable at reduced rates. For example, most food,
agricultural and farming products, medical products and tools, prescription
spectacles, sales of new houses, transportation, hotel services and services
provided by artists and actors are subject to VAT of 10%. A 4% rate applies
to staple foods, books, newspapers, magazines, medicines and care services
provided by companies to care homes.
Registered traders can generally recover the VAT with which they themselves are
charged on their purchases of goods and services, although there are exceptions.
Other Taxes
Stamp duty
Stamp duty is an indirect tax levied on:
• The transfer of assets between private individuals
• Certain corporate transactions, and
• Declarations or transactions documented and registered under seal.
Corporate transactions are taxed at 1.5% of, among others, a company’s capital
stock transactions.
The following corporate transactions are exempt from stamp duty: incorporation,
capital increase, other contributions made by shareholders, and change of
registered offices to Spanish territories.
Property taxes
A property transfer tax ranging from 6% to 10% applies to the sale of shares in
property holding companies located in tax havens, and in situations where the
VAT does not apply.
Non-resident companies usually pay a 3% tax on the cadastral value of
property purchased in Spain.
Some municipalities levy a local annual tax on the assessed value of property.
8. Environmental taxes
There are a number of environmental taxes including for nuclear fuel and
radioactive waste, the sale of electricity, petrol, gas and hydroelectricity.
Excise taxes
Excise taxes are levied on selected products. The tax is collected by the
manufacturer or importer and falls on the final consumer. Special manufacturing
excise taxes levied on the consumption of hydrocarbons, alcohol, alcoholic
beverages and tobacco production are compulsorily stipulated at the EU level
and have gradually been brought into line. As in other EU member states, there
is a special excise tax chargeable on vehicle registration.
Tax Credits and Incentives
for Businesses
Research and development
(R&D) expenditure
Free depreciation can be applied to R&D expenses recorded as intangible fixed
assets, and for new fixed assets and buildings acquired between 2011 and
2015 and used for R&D activities. Generally, the depreciation rate for buildings
used for R&D is limited to 10% annually.
Unused R&D tax deductions can be carried forward for 18 years (see below).
Tax credits
Performing certain activities gives companies the right to subtract from their tax
liability a tax credit calculated by applying a rate to the cost or expenses incurred.
Generally, the total amount of tax incentives which may be deducted against the
annual corporate tax liability is limited to a percentage of the tax liability. This
means that there may still be a charge for tax even if substantial tax credits are
unused. Unused tax deductions can be carried forward for 15 years. Unused
R&D tax deductions can be carried forward for 18 years.
The taxable liability limitation percentages applicable for 2014 are:
Type of Cost or Expense Tax Credit
Fixed assets to protect the environment 8%
R&D expenses 25%
Technological innovation 12%
Films 18%
9. Country Tax Guide
Spain
Taxpayers applying investment tax deductions cannot reduce their tax liability by
more than 25% per year for tax years 2013 to 2015. For companies incurring
R&D expenses exceeding 10% of the tax base, the deduction limit is 50% per
year for tax years 2013 to 2015.
Reinvestment credits
A reinvestment credit applies when capital gains are realised on the sale of
tangible and intangible fixed assets and shares in a company and the proceeds
are reinvested in the same type of assets as the ones sold. The transfer of certain
securities does not qualify for relief on reinvestment.
It is not necessary for a taxpayer to reinvest in an asset of the same nature as
that sold in order to qualify for reinvestment relief.
Reinvestment is not valid when the sale transaction takes place between
companies belonging to the same group, or when an item is purchased from
another company in the same group, except in the case of tangible fixed assets
or new realty investments.
In general, reinvestments must take place within one year prior to the date on
which the asset becomes available for transfer and the three years following,
although in exceptional circumstances authority to reinvest with reinvestment
relief may be requested through the normal channels provided by law.
The base for relief is the taxable income obtained from the transfer of any assets.
As a general rule, the credit is 12% when the company is taxed at the standard
rate (30%) or according to the scale applicable to small enterprises.
Tax relief on intellectual
property
For investments made from 29 September 2013, a 60% relief may be claimed
in respect of income derived from the assignment of use or from the exploitation
of patents, designs or models, plans, secret formulas or processes, or rights to
information concerning industrial, commercial or scientific operations. To apply
the incentive, the following conditions must be met:
• the intangible asset is created by the company
• the transferee is not resident in a tax haven or low-tax jurisdiction (unless an
EU member state), and
• the company has accounting records detailing the direct and indirect income
and expenses relating to the asset.
Exploitation of marks, literary, artistic or scientific works, cinematographic films
and others are excluded.
10. For investments made before 29 September 2013, a 50% relief may be
claimed on any income derived from the assignment of use or exploitation of
certain intangible assets created by a company. There is a limit on the amount
of relief. The assets in question must be among those expressly stipulated in
the rule, eg patents, drawings, plans and others. Exploitation of marks, literary,
artistic or scientific works, cinematographic films and others are excluded.
Regional incentives
Enterprises that are resident and/or have their business in the Canary Islands
have special tax advantages:
• A 50% reduction in corporate income tax payable on profits realised in
the Canary Islands. There is also a 50% relief on tax liability for income
generated in Ceuta and Melilla.
• Up to 90% reduction in the taxable base of undistributed profits, on condition
such profits are reinvested in the Canary Islands within three years
• Reduced taxes for companies setting up in the Canary Islands Special
Economic Zone.
Social security incentives
From 23 February 2013, employers are entitled to an exemption from social
security contributions in respect of new employees who:
• Are under the age of 30
• Have been enrolled at the Spanish unemployment office for an uninterrupted
period of 12 months during the 18-month period prior to employment
• Have no previous work experience or have work experience not exceeding
three months in duration
• Receive training from the employing company, and
• Are employed on a part-time basis (up to 50% of full-time hours).
The exemption rate is 75% for companies with at least 250 employees, and
100% for all other companies. The exemption can be applied for a period of one
year. This can be extended for a further year if the employee is continuing to be
trained or where training was completed within the previous six months.
11. Country Tax Guide
Spain
A flat social security rate of €100 per month generally applies to employers in
respect of each new, permanent full-time employee hired between 25 February
2014 and 31 December 2014. Flat rates of €50 or €75 generally apply in
respect of newly hired, permanent part-time employees, depending on the
number of hours worked. Qualifying conditions include a requirement that
the employment contract be maintained for at least three years, and the new
employee must result in an increase in the company’s workforce. The flat rate
applies for the first 24 months of employment.
Small business reinvestment tax credit
From 1 January 2013, a tax credit is available for companies with an annual
turnover of less than €10m. Such companies may deduct up to 10% of profits
that have been reinvested in economic activity from taxable income.