Are you starting your own business and don't know exactly what taxes you must pay to the treasury? You should know that this procedure is a citizen duty and failure to comply is considered a crime against the State. So that you are up to date with your payments, we advise you so that you know exactly how much, how and where you should pay this commitment, without paying more , thanks to the benefits that the law has.
What taxes do I have to pay?
According to the Constitution of Spain, the General Tax Law, the General Budgetary Law and their respective regulations, we must comply with special contributions, taxes and fees , according to the procedures we need to carry out and the amount of money that we invoice daily in our company. If you want to know more about this, check out our post on business loans .
One of the aspects that the State considers to evaluate our taxes is the ability to pay for goods and our income and expenses. The greater the capacity, the more money we must contribute to the public coffers. As lawyers in the tax area, we study your case considering earnings, debt capacity or if you are a self-employed worker or a retiree, since all these conditions vary the amount of what you must pay.
As an SME or self-employed person, you must make the following payments in Spain.
- Value Added Tax (VAT) . Your company does not pay it, but transmits it to the end customer who consumes the product or your service. But you must declare the amount paid and collected each month or quarter. Regardless of the productive area in which your business is located, you should always do it.
- Personal Income Tax (IRPF) . You pay it monthly according to the withholding system evaluated by the treasury. At the end of the year, if the balance is positive, you recover a part and otherwise, you deliver the difference. This tax has special reductions, deductions and exemptions for taxpayers. In this regard, we evaluate if you meet the conditions to receive this benefit and pay less. Some of these exemptions are due to disability benefits , severance pay or scholarships.
- Corporation Tax . You pay the rent of your company according to your accounting information and your legal status. In case you are an SME, you enjoy a 25% reduction compared to the general cost.
- Customs Income . You pay it when importing and exporting merchandise within the European Community . This tariff is the same in all countries.
Learn more about loans for the self-employed with our updated and comprehensive guide.
In Spain, there are also other commitments such as the Non-Resident Income Tax, the Tax on Inheritance and Donations, on Patrimony, the Tax on Patrimonial Transmissions and Documented Legal Acts and the so-called Special Taxes.
To comply with all these requirements and legal duties, we offer you solutions so that you comply with all the procedures within the established deadlines, in addition to looking for strategies and the tools that the law itself has in order to obtain reductions , which can be considerable so that the invest in your business.
How do SMEs pay less?
Yes. The Treasury has reduced to 25% the installment payments of Corporation Tax for medium and large companies with the benefit of 2 other deductions provided by law. If your company is in this category, you can reduce your tax payment, especially if you incentivize your stability and growth of the capital of your organization.
With your capital reserve, you reduce the tax base by 10? the income that you achieve in your economic activities for 5 years , except when you declare losses. With this type of incentive to save, the State seeks the reactivation of the local economy in recent years.
Either for the payment of your taxes as a natural person or as a manager of your company, we advise you at all times on legal, tax and financial matters in the terms you need, either to solve a critical dilemma or on a constant, semi-annual or annual.
At the beginning of your next tax year, trust our experience and professional services to help you pay your taxes with the respective deductions and exceptions established by legal regulations. In addition to the tax aspect, we also provide you with solutions and strategies to boost the economic activity of your company, either with loans, mortgages and third-party investments .
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