Questions

Income tax returns can be filed from May 2 to June 30.

In general, the corporate tax rates for Small and Medium Enterprises are as follows:
a) Tax base between 0 and 300,000 €, will be taxed at 25%
b) Remaining taxable base, will be taxed 30%
If the company has maintained the level of employment it is possible that it can benefit from a special tax rate of 20%

In general terms, the tax period is the calendar year and the tax accrues on 31st December of each year. However, a different period may be selected for the corporate year. The tax is settled during the 25 days following the six months of termination of the financial year.

To deduct VAT, the supporting document of such right (original invoice) will be required. The minimum requirements that such invoice must fulfil are the following: a) Number and, if any, series. The numbers of invoices within each series shall be correlative. b) Date of issuance. c) Name and surnames, complete corporate name, both of the person obliged to issue the invoice and the addressee of the operations. d) Tax Identification Number (N.I.F.) assigned by the Spanish administration or, if any, by another Member State of the European Community with which the person obliged to issue the invoice has carried out the operation. e) Domicile, both of the person obliged to issue the invoice and the addressee of the operations. f) Description of the operations. g) The tax rate or rates, if any, applied to the operations. h) The tax liability that, if any, must be charged, which shall be stated separately. i) The date when the operations documented have been carried out.

The first three quarters, from day 1st to 20th of the months of April, July and October. The fourth quarter, from day 1st to 20th of January for Forms 111 and 115 (withholdings of workers /collaborators and leases) and from day 1st to 30th January for payments on account of the IT, returns-assessments of VAT and annual summaries (Forms 390-180-190). If the last day for filing falls on Saturday or holiday, the term to file the returns will be extended to the following working day.

Pursuant to the Code of Commerce, any businessman must ensure an orderly bookkeeping suitable for the activity of the company which allows a chronological monitoring of all its operations, as well as a periodical preparation of balance sheets and stocks. The businessman shall mandatorily have, notwithstanding that provided in other laws or special provisions, a Stock book, Annual Accounts and another Journal. Companies shall also have a book or books of minutes stating at least all the resolutions adopted by the general and special meetings and other bodies of the company, including the information related to the call and the constitution of the body, a summary of the items dealt with, the speeches whose record has been requested, the resolutions adopted and the result of the voting process.

-Registration: during the 10 days before the actual initiation of the activity.
-Variation/Cancellation: 30 days after the occurrence of the circumstances that modified the initial situation or as of the day the activity has been ceased.

A periodic labour audit is advisable so that your advisor may detect changes, irregularities, possible improvements, etc. thus improving your company and avoiding future risks. Such audit is also recommended if you want to sell your company or before mergers or associations.

Failure to comply with these regulations scrupulously can represent a serious danger for the company, especially on the occasion of any work accident since, apart from the sanctions that may be imposed by the Labor Inspection, the company could be obliged to pay a lifetime supplement for the sickness or disability benefit and compensation for damages. Make sure you strictly comply with this law to avoid scares in the future.

This concept has been created to protect such self-employed workers with one sole employer economically dependent on the employer (at least 75% of his/her income), with no other workers under his/her responsibility, etc. granting them some interesting rights, such as redundancy pay, holidays, unemployment benefits ...