Incentives and tax bonuses for SME in Spain

In the next Corporation Tax declaration period, small-sized enterprises or SMEs in Spain will be able to apply for different tax incentives.

When will the special regime for SMEs be implemented in Spain?

The regime will be applied during the tax period beginning the 1st of January 2011, for enterprises with a turnover of less than 10 million euros.

This special regime will apply to the following three tax periods, as long as the enterprises fulfil the condition of being small-sized enterprises or SMEs.

The regime shall also be applied when 10 million euros are reached as a result of being part of a restructuring operation, as long as in the previous years the SME condition had been fulfilled.

How is the turnover calculated?

Group of companies
When an enterprise is part of a group of companies, the turnover amount shall refer to the total amount of all the entities that are included in the group.

Newly created company
The turnover amount shall refer to the first tax period in which the activity takes place. If the previous tax period had a duration of less than a year, the net amount of the turnover will be increased per year.

According to rule eleven on the preparation of annual accounts listed in the third part of the PGC, and also taking into account the ICAC 16th of May 1991 Resolution:

Compute the sales of goods or services that are usual in your activity, excluding VAT. Add the received subsidies, when they are obtained in function of the number of sold units. Do not add the sale of an asset, the subsidies for investments or the financial income.

Check that the sales returns have been subtracted from the previous sum, as well as the abseiling and the discounts granted.

In the case of a group of companies, the Tax Administration points out that to calculate these limits, the turnover of each one has to be added, without discounting the sales among them.

For further information regarding tax bonuses for SMEs in Spain,