Yearly Archives: 2023

Optimising the financial structure of a company: Tax advantages of increasing shareholders’ salaries or distributing dividends and how they compare in terms of personal income tax and corporate income tax.

In the business world, strategic financial decision-making plays a crucial role in the success and sustainability of a company and must also be in line with the requirements of tax compliance and corporate compliance. Among the options available to managers for the improvement of remuneration by the company are an increase in their own salary,…

NEW REGULATION APPROVED: COMPUTERISED INVOICING REQUIREMENTS

Recently, on 6 December, Royal Decree 1007/2023 of 5 December was published in the Official State Gazette (BOE), approving the Regulation that establishes the requirements to be adopted by the computer or electronic systems and programmes that support the invoicing processes of entrepreneurs and professionals, and the standardisation of invoicing record formats. This new regulation…

The Tax on Economic Activities and its census obligation in the month of December

Most of us tax advisors are working on the annual accounting and tax pre-closing of companies in order to be able to offer our clients the best tax advantage to reduce their tax burden for the financial year 2023. However, in view of this workload, we cannot forget that during the month of December there…

The revocation of a company’s CIF: tax and commercial implications.

Although at first sight it may seem to be an abstract action that rarely happens, it is more common than we think that the Spanish Tax Agency may revoke the NIF or Tax Identification Number of a company and it can happen for several reasons. Some of the most common reasons may be that a…

Measures To Avoid International Double Taxation

On numerous occasions, individuals and entities may be exposed to being taxed on the same income, profit, or asset in more than one country due to discrepancies in tax regulations between jurisdictions. This tax issue can generate a duplicate tax burden, negatively impacting those individuals and legal entities that carry out their operations internationally. For…

The limited verification procedure of the Tax Agency and its importance in tax management.

The Tax Agency, in its tax collection work, has various tax procedures to verify and audit the economic activity of taxpayers within the tax administration itself, where it finds its regulatory motivation in articles 117 and 123, among others, of the General Tax Law (hereinafter, LGT).   One of these procedures is the limited verification…

Impatriate regime: The so-called Bekcham Law also has census obligations in November

Our firm advises taxpayers covered by the Special Regime for Workers Posted to Spanish Territory to review their tax situation for the 2024 tax year in November, as some of them may have to comply with certain census obligations. This special regime, also known as the Beckham Law, allows individuals who have acquired their tax…

Form 232 and its implications for reporting related parties

Form 232 is an information return in which the Tax Agency is informed of related-party transactions and transactions and situations related to countries or territories classified as tax havens. Related-party transactions are regulated in Article 18 of the Corporate Income Tax Act. The deadline for filing this form is within the month following the ten…

Vat monthly refund register (redeme): advantages and disadvantages for companies

During the month of November, companies based in Spain have the possibility of voluntarily applying for inclusion in the monthly VAT refund register (REDEME). This register has an interesting financial attraction for those companies that need to improve their cash-flow in terms of VAT refunds as, through monthly returns, they will be able to apply…

The Importance of anticipating the accounting and fiscal year end.

In the tax advisory world, November has historically been a month of “little” workload or during which we take the opportunity to dust off certain files and close them. This is mainly due to the fact that, in this month, there are no excessive filing deadlines, which gives us a certain margin for “creativity”. Since…