El IAE or trade tax is a tax on business, professional or artistic activities, located in national territory.

In December of each year there is an obligation to inform the tax authorities of those companies that for the next year or will no longer be exempt from IAE.

exemptions:

Exemptions on IAEWhich lists the article 82 of Royal Decree 2 / 2004, 5 of March, approving the revised text of the Law Regulating Local Tax Authorities are as follows:

  • Taxpayers who begin exercising their activity on Spanish territory during the first two tax periods of the tax on which it is developed.
  • Taxpayers of income tax, civil societies and entities of the article 35.4 of 58 / 2003 Act of 17 December, General Tax, which have a net figure of less than EUR 1.000.000 business.
  • As taxpayers by tax non-resident income, the exemption will only apply to those operating in Spain through a permanent establishment, provided they have a net figure of less than EUR 1.000.000 business.

(The net turnover shall, in the case of taxable corporate income tax or taxpayers by income tax non-residents, the tax period the deadline for filing of these charges would ended prior to the accrual of the tax) year.

Deadlines:

The deadline for submission of the declaration of registration, modification, low and communication of net revenues are as follows:

  • If you declare discharged by starting an activity, it must be in the month of the start of it.
  • If the requirements to enjoy the exemption are not met, it must be declared in December last year who are required to testify.
  • If there has been a change in activity, must be communicated in the month from the date that occurred on the occasion of the variation.
  • If low activity, termination of exercise is declared must be communicated within one month from the termination and if that is going to benefit from the exemption, in December last year to stop being required to pay taxes.
  • Communication statement of net turnover occurs between the 1 14 January and February in the year they should be exercised in the IAE.

Form of presentation:

How to present statements is through model 840 (High, low or variation), the model 848 for communication of net turnover and other census obligations it is 036 and 037 models.


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Bao Liu Han

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