When a self-employed person must comply with Personal Income Tax (IRPF), there are three methods available: the standard direct valuation, the simplified direct valuation and the objective valuation, also known as the module system. We will focus on the latter option. Although it has faced debates and proposals for elimination, the module system is still… Continue reading Tax advisor: Who can apply to the objective valuation regime for the self-employed?
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Tag: Europe
Tax advisor: The newly implemented wage tax in 2023: how does the new wage tax decrease revenue?
To enhance the pension system without placing an undue burden on the younger population, the Intergenerational Equity Mechanism (MEI) will be temporarily introduced on employees’ salaries. This mechanism will account for 0.6% of the contribution base for common contingencies, with the company covering 0.5% and the worker covering 0.1%. For instance, in the scenario of… Continue reading Tax advisor: The newly implemented wage tax in 2023: how does the new wage tax decrease revenue?
Tax advisor: Is it interesting to take advantage of the Beckham Law?
Individuals who change their tax residence to Spain due to their move to the country have the option to pay taxes according to the special provisions of article 93, paragraph 2 of the Personal Income Tax Law 35/2006. Consequently, despite their tax residence in Spain, they will be subject to non-resident taxation according to the… Continue reading Tax advisor: Is it interesting to take advantage of the Beckham Law?
Tax advisor: Madrid is supportive in financing despite having lower taxes
According to a report published by the Foundation for Applied Economics Studies (Fedea), the Community of Madrid leads in both tax collection and contributions to the regional financing system. The Minister of Economy, Finance and Employment, Rocío Albert, emphasized that, despite having the lowest taxes, Madrid is the most supportive autonomous community in Spain. The… Continue reading Tax advisor: Madrid is supportive in financing despite having lower taxes
Tax Advisor: The Supreme Court defines how to register expenses of a foreign branch in the Corporate Income Tax
In recent rulings, the Supreme Court establishes that, when calculating the income from activities carried out by a company in a foreign branch, exempt under article 22 of the Consolidated Text of the Corporate Income Tax Law (TRLIS), the general management and administration expenses that contribute to the purpose of the branch can be apportioned… Continue reading Tax Advisor: The Supreme Court defines how to register expenses of a foreign branch in the Corporate Income Tax
Tax advisor: Treasury postpones to 2024 the new self-assessment model for the Financial Transaction Tax
The Treasury has decided to postpone the implementation of the new self-assessment model for the Financial Transaction Tax until January 1st of next year. Initially scheduled for September 1, this delay is due to “supervening technical circumstances” in order to ensure proper collection by all Administrations involved (State, Basque Country and Navarre). The period for… Continue reading Tax advisor: Treasury postpones to 2024 the new self-assessment model for the Financial Transaction Tax
Tax advisor: Deferred taxes, what is their meaning and what information is essential for SMEs and entrepreneurs?
Deferred taxes are an accounting resource regulated by international accounting standards, with the purpose of aligning the tax effect and the accounting effect in financial reporting. These taxes provide companies with the ability to adjust their financial statements for technical and accounting purposes. According to International Accounting Standard No. 12, deferred taxes are those that… Continue reading Tax advisor: Deferred taxes, what is their meaning and what information is essential for SMEs and entrepreneurs?
Tax advisor: The General Directorate of Taxes analyzes how the unilateral salary reduction, annulled by the courts, is taxed in the Personal Income Tax
The binding consultation of the General Directorate of Taxes (V1227-23) dated May 10, 2023, analyzes the taxation in Personal Income Tax (IRPF) of a salary reduction unilaterally imposed by a company and subsequently annulled by a final court ruling, when the company subsequently pays the corresponding arrears and interest. The earnings that the individual receives… Continue reading Tax advisor: The General Directorate of Taxes analyzes how the unilateral salary reduction, annulled by the courts, is taxed in the Personal Income Tax
Tax advisor: The General Directorate of Taxes analyzes the concept of enhancement to duly measure capital gains in Personal Income Tax
The General Directorate of Taxes has addressed the comparison between the concepts of improvement and repair in relation to the amount of capital gains in Personal Income Tax (IRPF) at the time of the sale of a property. This is evidenced in its binding consultations (V0229-23) dated February 13, 2023 and (V0349-23) dated February 20,… Continue reading Tax advisor: The General Directorate of Taxes analyzes the concept of enhancement to duly measure capital gains in Personal Income Tax
Tax advisor: The TEAR of Catalonia violates the “reformatio in peius” principle, harming the claimants, especially the entity that did not challenge certain liquidation agreements
The High Court of Justice of Catalonia examines whether the principle of “reformatio in peius” has been violated due to the decision issued by the Regional Economic-Administrative Court of Catalonia (TEAR). The plaintiff argues that the TEAR’s decision is inconsistent in annulling the entity’s corporate income tax settlement in relation to the eliminated expenses. This… Continue reading Tax advisor: The TEAR of Catalonia violates the “reformatio in peius” principle, harming the claimants, especially the entity that did not challenge certain liquidation agreements