Zurbano offers an overall tax advice and the subsequent compliance on any tax matters concerning fiscal regulations. Our tax services in Spain includes: Spanish Corporate Income Tax, VAT, Transfer Pricing, Local taxes, etc.
VAT
Spanish Value Added Tax (VAT) registrations and VAT returns are based on European Union legislation which sets the common rules across the whole EU. The Spanish government establishes the general Spanish VAT rate, which is 21% since September 1, 2012.
Any company making taxable supplies of goods or services may be required to charge VAT. This first requires a Spanish VAT registration.
Corporation tax
Trading profits, other incomes and capital gains are liable to corporation tax at the general rate of 28% for 2015 and 25% for 2016.
For companies with an annual turnover not exceeding 10 million Euros (total turnover including all group companies even abroad) the rate applicable is 25% on the first 300,000 Euros of taxable income and 28% on profits in excess of that limit for 2015. Since 2016, the only rate will be 25%, applicable to all turnover.
For companies with an annual turnover not exceeding 5 million Euros (micro companies) there is a special reduced tax rate of 25% on the first EUR 300,000 of taxable income for 2015. However, from 2016 the only rate applicable to all turnover will be 25% in all companies, independent from their size. These micro companies, with fewer than 25 employees are required to maintain or create jobs.
Those rates are not directly applicable over accounting profits. But it is necessary to consider some rules to reach taxable incomes.
Transfer prices
In the last few years, the Spanish tax authorities have increased the control over transfer pricing.
Law 36/2006, on methods to avoid fiscal fraud, changed the burden of proof to taxpayers and introduced the obligation of transfer pricing documentation. The formal documentation requirements were not published until November 2008 in Royal Decree 1793/2008. That Decree specifies the compulsory details that Spanish transfer file should include. In present, those have been somehow simplified but they are still quite ample and formal.
Additionally, corporate income tax return also requires that companies include as well some specific information with respect to their intra-group transactions, such as kind of transaction, the relationship of the parties involved, the transfer pricing methodology applied and the amount of each kind of transaction.
Local taxes
▸ Business Tax (I.A.E.). This is a municipal tax, payable every year, whose amount depends basically on the activity of the company and the type and size of the premises. Other parameters may also be considered.
▸ Municipal Real Estate Tax. It is levied every year and depends on the size and rateable value of the property.
▸ Other minor local taxes are: Motor Vehicles Tax, Construction Tax and the Capital Gains Tax on the Transfer of Land.
▸ Filing returns
▸ Managing and centralizing tax authorities communications
▸ Representation of the company in front of the tax authorities
You will always have direct access to the tax specialist filing your return who will also communicate directly with the Spanish tax office when required.
