How should a company face a tax audit in Spain?
There are different reasons why a company can be subject to a tax inspection: excessive VAT refunds, discrepancies between quarterly and annual models (…), or commonly for random reasons.
Tax Law law involves the legal rules which enable the State to exercise its tributary powers. Taxes or contributions are compulsory economic outlays that physical and legal (passive subjects) persons must pay directly or indirectly, and with which the State (active subject) finances its activity for common good.
Can the company issue or receive invoices in foreign languages or currencies?
The tax regulation in Spain (Royal Decree 1619/2012) establishes the language and currency to invoice. The language of invoices The company can issue and receive invoices in any of the official languages spoken in Spain (Spanish, Catalan, Galician, or Basque), as well as in foreign languages. Only if the company is subject to control can […]
What is the special tax on real estate of non-resident companies?
Non-resident companies that own real estate in Spain are subject to the non-resident income tax by means of a special tax payable on 31 December of each year and which must be paid in January of the following year.
Who is obligated to withhold and pay tax to the Spanish Treasury?
In Spain, subjects obliged to withhold and pay tax to the Spanish Treasury are paymasters. The issuer of an invoice is not required to inform paymasters whether or not they are subject to the withholding tax or the percentage to be withheld. The person responsible to the Spanish Treasury is the one who receives the invoice, not the one who issued it.
New Electronic System for Registering VAT Books in Spain
From 1 January 2017, large companies and professionals registered in the VAT Refund Special Regime will be required to use the new system for registering VAT books through the electronic office of the Spanish Tax Administration Agency.
Tax evasion and the sanctions regime for foundations in Spain
In order to fight tax evasion only foundations respecting legal requirements will be entitled to receive subsidies and fiscal advantages in Spain.
Simplification of the granting of the golden visa in Spain
In September 2014, the Spanish government adopted a law to support entrepreneurs; fifteen months later, it is considering adopting seven new measures that will simplify the administrative steps for granting this golden visa or residential permit in Spain.
The tax treatment in Spain on partners’ remuneration
One of the most important novelties introduced by the reform of the Law on Income Tax in Spain concerns the VAT taxation of a company’s partners engaged in professional activity.
Changes in the draft on the fiscal reform in Spain
The new fiscal reform in Spain, which will gradually be implemented in 2015 and 2016, will benefit rents bellow 50.000€ and individuals with family responsibilities. Severance pay shall be taxed, the exclusion of the dividends is abolished and the deductible quality of pension plans is reduced.
Inheritance tax Returns to non-residents in Spain due to discrimination
In its judgment on 3 September 2014, the European Court of Justice (ECJ) declared that Spain had infringed Community law by permitting differences in its tax treatment of the inheritance and gift tax between residents and non-residents in Spain and requires the return of wrongfully collected revenue.