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Newsletter: No 7 - July 2010

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Details Newsletter No 7 - July de 2010

  • Extract the most significant measures adopted by the Royal Decree-Law 10/2010 on Labor Reform.

    A short and concise way I discussed the most important aspects of the labor reform approved by the Government:

    • maximum contract duration of work or service subscribed as of 18/06/2010 is 3 years, extendable by agreement for the sector up to 12 months, after which the worker becomes in fixed. The new regulation provides, without prejudice to the provisions of the present state of collective bargaining to adapt this contract, and what you set for subcontracting in the construction sector. entrepreneur will deliver a document certifying the worker about his new capacity as fixed within 10 days.
    • From 06/18/2010 contracts TRAINEES will be able to agree with those holding the certificate of professional. Besides extending the deadline for concluding the contract up to 5 years from the completion of studies.
    • Until 31/12/2011 may be held to contracts for training under 25, and also entitled to a bonus of 100% of contributions to Social Security and will cover all contingencies, including unemployment. The new bonuses and unemployment do not apply to School Workshops, Trade and Employment Workshops.
    • Restricts the possibility of using temporary contracts CHAIN. As of 6/18/2010, and not retroactively for purposes of computation of contracts, chaining occurs when, beyond the legal deadline, but contract not only for the same job but for another position in either different the same company or group of companies, regardless of whether there has been a succession or subrogation business, fulfilling the other conditions. The employer must also submit a document certifying the worker about his new capacity as fixed.
    • As of 18/06/2010, is reduced from 30 to 15 days notice within which an employer must notify the worker for individual dismissal for objective reasons.
    • It gives a new wording to the causes of dismissal for economic, technical, organizational or production, which apply both to the collective dismissal and the dismissal individual target
    • Compensation on termination of temporary contracts is held in 8 days for contracts to be concluded until 31/12/2011. And gradually extended from 01.01.2012 up to 12 days of compensation for those held as of 1/1/2015.
    • FOGASA pay a portion of the compensation for termination of permanent contracts exceeding one year, concluded after 6/18/2010, when the reasons for the dismissal are those provided in the collective dismissal, the lens or dismissal of the bankruptcy law art.64.
    • The reform provides for the suspension of the employment contract or REDUCTION DAY by economic, technical, organizational or production.
    • Establishes a new regime in BONUS SHARES permanent contracts as of 18/06/2010:

    Companies hiring until 31/12/2011, indefinitely unemployed workers aged 16 to 30 with special problems of employability, and over 45 years are entitled to a bonus in the employer contribution to Social Security.

    Also will be credited to firms 31/12/2011, transformed into permanent contracts, training, relief and replacement due to early retirement.

    New hires or processing, except the replacement contract, should assume an increased level of permanent employment of the company and maintaining it for the duration of the bonus.

    Repealing a result of the overall program to promote employment under the Law 43/2006, the bonus system for processing contracts into permanent training, relief and replacement and permanent contracts for workers in general. And the bonus is still valid for groups with specific characteristics, such as people with disabilities, women victims of violence, social exclusion.

    • Equally extraordinary is repealed plan for the permanent recruitment of unemployed workers with family responsibilities of the Law 43/2006.
    • Also repeals the system of bonuses for permanent contracts for workers receiving unemployment benefits of Law 27/2009.
    • Since 18 June the company will respond alternative user of financial compensation arising from the termination of the employment contract of provision of Temporary Work Businesses.
    • The reform envisages the establishment of private employment agencies for job placement activities in cooperation or coordination with the Public Employment Service.

    Take this opportunity to inform you that labor reform is currently pending in Congress is therefore not ruled out future amendments or new measures.

    For any queries please contact our office.

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  • Since completing the VAT returns from the change in rates on 30 June.How to complete the VAT returns from the change in rates on 30 June.

    Law 26/2009 of the General State Budget for 2010, modified and reduced overall rates of Value Added Tax with effect from July 1, so that the overall pass rate of 16% to 18% and reduced rate passes 7% to 8% without any alteration has occurred in relation to the super-reduced rate of 4% and the rates of charge equivalence.

    Completion of declarations

    a) VAT self-assessments, model 303, corresponding to periods beginning from July 2010 (corresponding to 07 months or at 3 T), can be given that status in one accounting period are to reflected taxable transactions under the new tax rates (18%, 8%) with other accrued in prior periods and those that apply to them the rates applicable until 30 June (eg assumptions of tax base changes, sales stabilize travel arrangements, Article 89.5 LIVA adjustments, etc.. to which is applied to the rates of 7% or 16%).

    In these cases must be entered in boxes 01 and 04 the sum of the bases. The same shall proceed with the boxes of the tax due.

    As for the boxes on the tax rates will involve the type resulting from the ratio between the amount declared and the tax base, whatever the result and if this ratio does not give a whole number, shall contain the first two decimal places the resulting number.


    General VAT rate of 18% (above 16%)
    Taxable Q3 = 40,000 €
    Modification taxable periods before bad debts (€ 20,000)
    Fee = 40,000 x 0, 18 to 20,000 x 0.16 = 4,000 €
    average rate = 20% = 4.000/20.000

    Completion of the model:

    Box 01: 20,000 (40000-20000)
    Box 02: 20% (4,000 / 20,000)
    Box 03: 4,000

    Self-assessments in Form 303 for the 1 T or 2 T of 2010 or 01 to 06 months of 2010 not be appropriate bases and quotas to the new tax rates of 18% or 8%.

    Example: Lease for the month of May 2010 as per contract is payable within 60 days after the end of the month (in this case July 30, 2010).
    Although accounting embodies a document dated in the month of May indicating the amount due for the lease of that month, the bill will not be issued until 30 July and the tax rate is 18%. No statement will be 05 month or 2T, 2010, but will be held in month 07 or Q3 2010.

    b) During the year 2010 is expected to issue a Ministerial Order to approve a new model 390-annual summary to be included in the new boxes that allow separately declare the operations for the full year, broken down by type tax to have in fact been taxed.

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  • The new civil registration replaced the traditional family book by an Individual Certificate

    The Council of Ministers approved the draft Civil Registration Act, which provides the main novelty the replacement of the traditional family book for a registration certificate for each individual, linked to a personal code, which is recorded all the facts affecting them from the civilian perspective.

    The new registration certificates, which replace the family books may be ordered via Internet. In addition, there will be a common electronic database for citizens to do their transactions at any branch of the country and only in extraordinary cases will have to go personally to register.

    Since the entry into force of the new law, every birth registration shall be accompanied by a personal code of citizenship for an alphanumeric string, which will serve for all the user steps required to perform with the Civil Registry.

    The new bill removes Registrar any discrimination on grounds of sex, are incorporated instruments for the protection of minors and disabled persons who had not yet reflect specific policy in the civil register, and protected in a special way some sensitive personal data limiting advertising.

    Moreover, the modernization of civil registry makes it necessary to dejudicialisation so happens to be configured as an administrative body under the Ministry of Justice and managed by public officials, whose decisions shall be subject to judicial control.

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  • The amendments to the labor reform law no government will tightenThe amendments to the labor reform law no government will tighten

    Expectations that the Parliament deepened in labor reform have been dashed. At least this is the opinion of leading experts, who understand that the amendments tabled by the various government groups to the text not only did not expand, but even the limit. "The labor reform is being watered down, " they say. The PP is alone in demanding the "improvement of internal flexibility within companies.

    Of the nearly three hundred amendments tabled by the parliamentary groups of the decree law to be discussed at the Working Committee, which has full legislative capacity to provide flexibility to the processing, only 71 submitted by the PP advocate a radical change of government text. However, the possibility of leaving out is very small if not nil. The reason is that they are very distant approaches of the government project and there is no point of understanding. The Prime Minister, José Luis Rodríguez Zapatero, wants to make welfare reform, but not go too far, to avoid a complete break with the unions.

    Those who do are likely to be adopted are some of those submitted by CiU. The problem is that the experts consulted these amendments do not make a big improvement over the government text. The most important is to assess the conditions to facilitate business objective dismissal is equivalent to moving from an award of 45 days per year to another 20 days per year of service. According to experts, the choice was left wide open and at the discretion of judges. CiU's proposal is that objective conditions are agreed redundancy between employers and unions in collective bargaining.

    This proposal, which has huge potential to succeed, it is extremely controversial. For some means to step back, because again left to the unions to determine the compensation is 20 or 45 days. For those responsible for CiU, however, will allow employers the opportunity to demonstrate to workers if the company really has to limit compensation to make viable the setting or if in fact threatens the employment of workers remain.

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  • The effective rate of corporation tax drops to record low The effective rate of corporation tax falling to historic lows.

    Companies that posted gains in 2009 taxed at 18% corporate tax, the lowest level in recent history to the latest data published by the Tax Office. The official rate of tax is at 30% and 25% for SMEs, however, the numerous deductions that provides law reduces the tax by 12 points real.

    "The tax reform in 2007 and a few drops of deductions less pronounced than those of the bases have caused a reduction particularly intense kind ", explained in the Tax Agency reported. In 2007, the government reduced the general rate of 35% to 30% within two years. The downgrade did not stop Spain remains as the fourth EU country with the highest official assessment, which repeatedly denounced the bosses. However, from the Executive, responds that the real burden is much lower and is below the European average.

    Spain is characterized by maintaining a tax on corporate profits high, however, is significantly reduced due to the high deductions exist. Treasury sources say that values the ability to "clean tax benefit" corporation tax. A measure that is still at a very early stage. "No one should expect changes for 2011, " Treasury sources say.

    In any case, the medium-term objective of the Government spends to raise the tax neutrality and prevent as now that some companies are taxed at 30% while others apply a tax of 10%. Overall, companies that benefit most are those most internationalized tax, which often coincide with those of larger size.

    The latest data show that the tax-consolidated groups formed by large businesses used an effective rate of 17.8% in the first installment payment this year, while the assessment of other companies rose to 21 , 3%. Put another way, the big companies charge on average a lower rate than other companies.

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