STORIES

4 November, 2015

The new Spanish tax system for small sized businesses

PICTURE: Arjan Almekinders / Transitions

As from January 01, 2016, civil joint ventures or small sized businesses with an activity qualified of a mercantile nature are considered as Corporate income taxpayers.

Up to such date, this type of collaboration agreement is a sort of a flow-through entity as its net income is not taxed under Personal or Corporate income tax but it is allocated to each one of the members, in the agreed proportion. If such agreement is unknown by the Spanish tax authorities, then the distribution is done in equal parts. The assigned income keeps the tax nature of the activities from which it proceeds.

This change will affect, primarily, small businesses that had found in this formula, a simple way to develop their businesses, without a strong bureaucratic burden.

Who is affected by the new regulations?

Civil joint ventures having legal personality, providing their internal agreements are not kept secret.

In order to be qualified as Corporate income taxpayers, small sized businesses must be set up in a public deed or in a private document but providing it is contributed to the Spanish Tax Administration in order to be assigned a tax identity number.

In addition to it, it is necessary that the civil joint venture carries on an activity of a mercantile nature. To this purpose, activities within the agricultural, livestock, forestry, mining or professional sectors are excluded from the qualification as mercantile nature.

Is this change mandatory?

As mentioned above, from January 01, 2016, these entities no longer allocate their net incomes to their members but are taxed under the Corporate income tax system.

In such case, they will be subject to the rules of this tax ad will have to keep accounting records to as to calculate their tax benefit. Besides, the regulations establish a transitory system to translate to the new system.

Despite this new system is mandatory, If the legal requirements are met, taxpayers can elect to apply a special system. During the first six months of the fiscal year starting in 2016, they can agree to dissolve, having an additional six months period to extinguish.

Providing such terms are complied with, the joint venture will keep on being subject under the allocation of incomes system.

It will be required to analyse, on a case by case basis, the convenience to implement this change as well as the tax cost that it can imply, to evaluate whether the currently existing structure of these small sized businesses needs to be kept or not.

CONTACT

MADRID
Pedro Teixeira 8, planta 4ª, 28020
T+34 91 192 21 22

MAP

BARCELONA
General Mitre 28-30 08017.
T+34 93 363 65 10

MAP

Based in Barcelona and Madrid. Englobally is our Latin American business partner established in Santiago de Chile.

We are also part of Englobally Group, an international association of independent accounting and advisory firms that provide a one-stop shop managed solution for accounting, payroll and HR needs, with member firms in over 25 countries and associates working in many others. Many fast growing technology and lifescience businesses find their international services invaluable. Companies in many other sectors are attracted by the close and supportive way Englobally Group works.

Name

E-mail

Message

Please type the code below

captcha

  • Este sitio web utiliza Cookies de terceros y de análisis, para recopilar información con la finalidad de mejorar nuestros servicios, así como para analizar sus hábitos de navegación. Si continúas navegando, supone que aceptas expresamente la instalación de las mismas. Tienes la posibilidad de configurar tu navegador pudiendo, si así lo deseas, impedir que sean instaladas en tu dispositivo, aunque deberás tener en cuenta que dicha acción podrá ocasionar dificultades de navegación de la página web.

  • De conformidad con lo establecido en la normativa vigente en materia de Protección de Datos de Carácter Personal, le informamos que sus datos serán incorporados al sistema de tratamiento titularidad de PROFESSIONAL BOOKKEEPING SERVICES S.L. con CIF B59830638 y domicilio social sito en RONDA DEL GENERAL MITRE 28 08017, BARCELONA, con la finalidad de atender sus consultas. En cumplimiento con la normativa vigente, PROFESSIONAL BOOKKEEPING SERVICES S.L. le informa que sus datos serán conservados durante el plazo estrictamente necesario para cumplir con las acciones mencionadas con anterioridad.

    Salvo comunicación contraria por su parte, entenderemos que sus datos no han sido modificados, que usted se compromete a notificarnos cualquier variación respecto de los mismos, y que usted da su expreso consentimiento para que PROFESSIONAL BOOKKEEPING SERVICES, S.L. utilice los mencionados datos para las finalidades mencionadas.

    PROFESSIONAL BOOKKEEPING SERVICES S.L. le informa que procederá a tratar los datos de manera lícita, leal, transparente, adecuada, pertinente, limitada, exacta y actualizada. Es por ello que PROFESSIONAL BOOKKEEPING SERVICES S.L. se compromete a adoptar todas las medidas razonables para que estos datos se supriman o rectifiquen sin dilación cuando sean inexactos.

    De acuerdo con los derechos que le confiere la normativa vigente en materia de protección de datos podrá ejercer los derechos de acceso, rectificación, limitación de tratamiento, supresión, portabilidad y oposición al tratamiento de sus datos de carácter personal, así como del consentimiento prestado para el tratamiento de los mismos, dirigiendo su petición a la dirección postal indicada más arriba o al correo electrónico info@pbs.es.

    Podrá dirigirse a la Autoridad de Control competente para presentarla reclamación que considere oportuna.

    El envío de estos datos, implica la expresa aceptación de esta cláusula.

  • Pursuant to current Personal Data Protection Regulations, you are hereby informed that your data will be included in a processing system owned by PROFESSIONAL BOOKKEEPING SERVICES S.L. with Tax ID No. B59830638, with its registered address at RONDA DEL GENERAL MITRE 28, 08017 BARCELONA (SPAIN), in order to deal with your questions and requests. In compliance with current regulations, PROFESSIONAL BOOKKEEPING SERVICES S.L. hereby informs you that your data will be kept for as long as is strictly necessary to complete the aforementioned action.

     

    Unless otherwise stated, we will consider that your data have not been modified, that you undertake to inform us of any modifications thereto, and that you give your express consent for PROFESSIONAL BOOKKEEPING SERVICES, S.L. to use said data for the specified purposes.

     

    PROFESSIONAL BOOKKEEPING SERVICES S.L. informs you that it will proceed to process your data in a lawful, loyal, suitable, relevant, limited, exact and updated manner. Therefore, PROFESSIONAL BOOKKEEPING SERVICES S.L. undertakes to apply all reasonable measures to ensure that any incorrect data are deleted or corrected without delay.

     

    According to the rights granted to you under current data protection regulations, you will be entitled to exercise your rights of access, rectification, limitation on processing, suppression, portability or opposition regarding the processing of your personal data and your consent to the same, by addressing a written request to the postal address provided above or to the email address info@pbs.es.

    By sending these data, you are expressly accepting this clause.