In this article, we shall examine some of the updates and changes regarding the fiscal reform affecting entrepreneurs and self-employed workers. One must however remember that the measures in the draft are provisional and may be modified before their final publishing in the Official Spanish State Bulletin (BOE).Corporate Tax after the Fiscal Reform in SpainThe corporate tax will be reduced from 30% to 25%.The reduction will take place in two phases: during the year 2015 it will go down from 30% to 28%. In 2016, it will go down to 25%, matching the rate that large companies and small and medium-sized businesses pay on profits.Reduction of the Personal Income Tax (IRPF) bracketsThe fiscal reform will reduce seven IRPF brackets to five brackets between 2015 and 2016. Once the fiscal reform enters into force, the minimum IRPF rate will go down to 19% while the maximum will remain at 47%.Withholding Tax in SpainFrom the 5th of July 2014, the withholding rate for professional activities will go down to 15%, as long as the previous fiscal year’s profitability volume was lower than 15.000€.Taxation in Spain of Shareholders in Civil Societies with a Commercial PurposeIn 2016, civil societies with a commercial purpose will start paying corporate tax. Thus, their shareholders do not need to include the income obtained from these entities in their income tax (IRPF). Profits may be taxed in some cases.A special fiscal regime is set up for the dissolution and liquidation of civil societies.In the IRPF, the corporate tax and the tax on the income of non-residents, a similar regime is set up to the one created for the dissolution of civil societies.Shareholders of civil societies, to whom the income allocation system was applied and therefore obtained the status of corporate taxpayers, can keep applying the deduction on economic activities until the 1st of January 2016, as long as they fulfil the requirements of the corporate tax law.For additional information regarding the fiscal reform in Spain,
