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BUSINESS ACTIVITY TAX IN SPAIN (IAE – IMPUESTO SOBRE ACTIVIDADES ECONOMICAS) BY EFFICIENT ACCOUNTANTS IN MARBELLA, SPAIN
TAX IN SPAIN BRUEGHEL EL JOVEN
English speaking efficient Accountants in Marbella, Spain sets out below mentioned some lines with regards to the Spanish Activity Tax (IAE). The below mentioned information is relevant in the event you wish to start an business in Spain or already carry out an economical activity. In general terms the business Activity Tax (IAE) is a direct tax, due by all individuals and legal entities as referred to in art. 35.4 of the Spanish Law 58/2003 of December 17th,, as long as they are engaged on a business, professional or artistic activity on National Territory. However, there are some exemptions.
Exemptions of this tax in Spain:
The following amongst others are exempt:
1. The first two tax periods of the taxpayer when they have just started the activity. 2. All individuals. 3. All Spanish tax payers that have obtained during the tax year a Net Turnover of less than 1.000.000 €uros . 4. Non Spanish resident tax payers operating in Spanish Territory through a permanent establishment as long as they have obtained during the tax year a Net Turnover of less than 1.000.000 €uros .All taxpayers need to inform the Inland Revenue in Spain at the beginning or end of an activity as well as any changes during this time by completing the tax forms number 036. Only the Taxpayers that are liable to the tax payment, for not fulfilling the above mentioned exemptions need to complete also the Spanish tax form number 840.
When a Taxpayer stops fitting into the mentioned exemptions during a determinate period it is compulsory to inform the Spanish Inland Revenue by completing the tax form 840 stating that they no longer enjoy the exemption and again informing by completing the same tax form when they again fulfil the exemption. In the majority of cases this will be caused by the net turnover of a company being more than 1.000.000 €uros, then the form 840 will needs to be presented before the end of the following tax period.
Example:
An Spanish SL company with tax period – January to December during 2010 has a Net Turnover of 1.500.000 €uros. Before the end of December 2011 will need to present the tax form 840 informing the Inland Revenue that is liable to Business Activity Tax during 2012.
The tax in Spain due will be calculated by the Local Authorities as the tax depends on several factors such as activity, location, premises, official ratios ….etc
Please do not hesitate to contact the English speaking Spanish accountants in Marbella of Arcos & Lamers Asociados for all your accounting and tax advice needs.
Sara Duarte Davidson, one of the several English speaking Spanish accountants in Marbella.
Marbella, December 2012
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