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Newsletter: No. 13 - January 2011

Clicking on the headline of each news item, you have access to the detail of it.

Details Newsletter No. 13 - January 2011

  • SMEs are taxed at a rate three points higher than large firmsSMEs are taxed at a rate three points higher than large firms.

    The difficulty for SMEs to access tax deductions on corporate causes taxed at an effective rate three points higher than large firms. This happens even though the tax rate for small and medium enterprises is 25% to 30% of other companies.

    The corporation tax is, on paper, a progressive tax because the large companies apply a nominal rate greater than SMEs. However, the tax benefits provided by legislation reversed this situation. The latest data from the Treasury, under the year 2008 was declared in 2009, show that large companies were taxed at an effective rate of 20.2% when the nominal tax amounts to 30%. In contrast, SMEs paid 22.9%, a level close to its nominal rate, which is 25%.

    That is, SMEs are taxed three points ahead of big business. This shows that no corporation tax progressivity. Or put another way, the legislation allows a company Ibex tax charges are less than, for example, the SME Painters Hermanos Gómez, SL If this happens in income tax would mean that a CEO would be taxed at a lower rate than a bricklayer or a supermarket cashier.

    On the other hand, there are also notable differences between large firms. A company that does not invest in R & D or not apply the tax credit for reinvestment of extraordinary profits taxed at a rate very close to nominal, while another company that do make a good tax planning to access tax deductions may apply a rate much lower.

    This situation is explained by the peculiar laws of corporation tax in Spain. On the one hand, the nominal rate is the fourth highest in the EU, surpassed only by France, Belgium and Malta. However, Spanish law provides for many more deductions than in most EU countries. In addition, the Law of Sustainable Economy rise from 8% to 12% tax credit for innovation and 4% to 8% investment tax benefits for the environment in.

    Tax statistics show that a company with revenues exceeding 750 million pay a lower rate than a company that, for example, expect a turnover of 10,000 euros. In any case, large companies accounted for 2% of total respondents and corporate tax, however, provide almost 80% of revenue.

    Currently, the income tax legislation defines small size companies as those whose turnover does not exceed eight million euros. The Government will raise the threshold to 10 million euros, so the percentage of SMEs reporting on the total increase.

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  • Spain's smoking ban. Comes into force on January 2, 2011 What is it?Spain's smoking ban. Comes into force on January 2, 2011 What is it?

    Known as New Anti-Smoking Anti-Tobacco Law Act 2011 or the Spanish law which comes into force on January 2, 2011, whose most important measure is the ban on smoking in any enclosed building open to the public, resulting in bars, clubs and restaurants smoke-free. There will be only a few exceptions, but in general we can speak of a total ban, which equals the Spanish law the most advanced in this field such as the American, German or British. In the case of airports, although the smoking ban takes years to existing airports, all terminals had authorized smoking areas, a fact that caused the concentration of smokers and odor in certain areas of aerodromes. With the new rules, those spaces will disappear. A smoker should get the idea that from the moment you access to a terminal, you can not smoke again until you reach your destination.

    The Anti-Tobacco Reform Act contains a popular demand for a society that, mostly, do not smoke. Looking at the figures Health Barometer, 2009 conducted by the CIS, 47.4% of the Spanish are hardened supporters of the smoking ban and, according to statements by Trinidad Jiménez, "70% of the population does not smoke. "

    Therefore, with these statistics is difficult to argue the reasons that lead not only to the innkeepers, but the Popular Party to oppose the measure. According to Mario Mingo, Spokesperson for Health in the People's Congress of the project group "will do great harm" to bars and restaurants.

    For its part, the Spanish Federation of Hoteliers (FEHR) estimates that a total ban will close 70,000 establishments, which caused the loss of 200,000 jobs.

    Where you can smoke and not smoking?

    • Smoking is prohibited in all bars, restaurants and entertainment venues closed and no possibility of developing a smoking.
    • Snuff is prohibited in the entire hospital campus, including access and transit zone.
    • Smoking is prohibited in schools except in open areas of the university campus.
    • Smoking is prohibited in the areas of children's entertainment.
    • In contrast, smoking is allowed in stadiums, arenas and outdoor enclosures and homeless or awning.

    Can you keep selling snuff in bars?

    Yes, we have tried to mitigate the effects of the ban on the possible loss of business.

    What are the penalties if they break the law?

    It will maintain the same penalties as above law.

    • Minor infringements: 30 to € 600 fine.
    • Serious Offences: 601 to € 10,000 penalty.
    • Very serious infringements to 600,000 €.

    The biggest victims of this new anti-smoking law are the owners who did work on the premises of more than 100 meters to enable a smoking area. These investments yet will not help recoup the entry of the new law, nor receive any compensation.

    In addition, hoteliers warn against the strong economic impact of this measure on their businesses, warning that they may lose 140,000 jobs and 10% of sales.

    In fact, the only EU countries that have banned smoking entirely in public spaces, Ireland, Great Britain and Cyprus, had a severe impact on these businesses and for example in Ireland closed on 24% of bars and 8, 7% of the restaurants after enforcement.

    You can download the Mandatory Use posters in all the venues and facilities affected by the standard, through the following link:

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  • Amended income tax regulations relating to income in kind, tax credit for investment in housing and prepayments.Amended income tax regulations relating to income in kind, tax credit for investment in housing and prepayments.

    The Council of Ministers approved a Royal Decree amending the regulations of the Income Tax of Individuals, Corporate and Non-Resident Income to adapt to new legislative measures of income in kind deduction for investment in housing and prepayments.

    Income Tax

    In regard to income tax, the amendments referred to the transport voucher, the new tax treatment of the deduction for investment in residence, the new general tax scale approved by the Finance Act 2011, the new tax treatment investment companies and reducing administrative burdens. Thus:

    - Setting out the requirements of the formulas indirect payment to entities providing public service workers public transport between their residence and workplace. The amounts paid by companies to cover this service, called the check-transport, are considered in-kind income in income tax free for up to 1,500 euros.

    - Introduced two amendments to the regulation of personal income tax as a result of new tax treatment of investment deduction residence:

    In relation to the accounts, housing, preserving the right of taxpayers to deductions for amounts actually practiced deposited in a housing account before January 1, 2011 so that this right is not affected by the new limit according to the tax base set to benefit from the deduction for the purchase of residence from that date.

    On the other hand, is set in twenty thousand euros the amount of income from employment or economic activities that reduce by 2 100, the withholding rate or amount of the installment payment in cases of acquisition of foreign-funded residence . The limit will remain at 33,007.20 euros for those who purchase their residence before 31 December 2010.

    - As a result of the new general scale state income tax for 2011, including the creation of two tax rates increased for higher income brackets, adopting the new scale of deductions to be applicable to recipients of income from work From January 1, 2011. The maximum rate of withholding is set at 45 per 100.

    - Are subject to withholding income obtained from capital operations with capital reduction reimbursement or allocation of the share issue premium, because the new tax treatment to the fund.

    - Finally, in order to reduce administrative burdens, allowing communication of personal and family circumstances of the worker, which affects the retention rate calculation, can be made by electronic means or electronic.

    Societies and non-residents

    Royal Decree approved today also modifies the income tax regulations and the resident income to, in coordination with the modification in the regulation of income tax, subject to withholding sums in cases of social capital reduction reimbursement or allocation of the share issue premium incurred by a fund.

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  • Central Administration closed 2010 with a deficit of 5.1% of GDP, around 8,000 million less than expected.Central Administration closed 2010 with a deficit of 5.1% of GDP, around 8,000 million less than expected.

    Central Administration, which includes the state and autonomous bodies dependent on it, closed the year 2010 with a deficit in terms of national accounts 53.444 million euros, equivalent to 5.1% of GDP, according to the Interim progress of the State budget execution in 2010 that was presented today by the Second Vice-President and Minister of Economy and Finance, Elena Salgado.

    This figure, although still provisional, to confirm compliance by the State Administration of its deficit target for the past year, set at 5.9% of GDP, with a gap of around 8,000 million euros . This mattress will be allocated first to cover the imbalance of 0.3% of GDP in the accounts of the Public Employment Service, posted to the Social Security budget. It also provides a margin of security for meeting the target of 9.3% for all public administrations but were to occur, eventually, any deviation in other government.

    In 2009, the deficit on the government accounts was 9.4% of GDP, which means that in one year the central government has been able to reduce the imbalance in its balance in terms of national accounts by almost half. The most immediate consequence of this adjustment is that the need for state funding has declined by 4.5 percentage points of GDP compared to 2009 and state government debt has fallen below expected.

    The data presented today represent a first provisional estimate of progress in implementing the state budget in 2010 and, although it is expected that significant changes occur, will have to wait, as every year, in late February for more precise disaggregated data. A look forward to provide such details, the Second Deputy Prime today has advanced the revenue generated by the state in 2010 have improved the forecast included in the 2010 budget as the advance of outturn reflected in the draft Budgets for 2011. Thus, the State's financial income, after discounting the share of the local authorities, amounted to 127.338 million euros, around 5% more than initially planned. This positive trend is the behavior of tax revenues that, overall, before the transfer to local authorities, grew by 10.9% compared to 8.1% initially.

    Austerity EXPENDITURE

    Government spending, meanwhile, have performed in line with expectations, highlighting the performance of further austerity measures implemented by the Government in the past year, mainly the unavailability agreements approved the months of January and May, which provided for the non-execution of budget worth 7.425 million euros, and the initiatives in the Royal Decree on Measures to Reduce Public Spending May 20.

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  • Inspectors do not believe any tax provisions Salgado.Inspectors do not believe any tax provisions Salgado.

    The accounts do not go. Although the government of José Luis Rodríguez Zapatero noted that insists on cutting the budget deficit in 2011 is fully guaranteed, some budgetary imbalances question whether the red numbers will reduce from 9.3% to 6% of GDP during this year, as required by the European Commission. Therefore, it will be necessary over tax increases and spending cuts.

    In a report yesterday, the spokesman of the Organization of Tax Inspectors, Francisco de la Torre, is very difficult for the Ministry of Economy will meet its revenue projections in 2011. Warns that the revenue growth expected this year (from 8,000 million euros) is optimistic. Also be aware that to make a further cut government spending four times that of 2010 to that there is a substantial deviation in the government budget balance. Contrary to the view Salgado, De la Torre believes that the estimated revenue of the leading figures are conservative.

    Moreover, of the 34,600 million that the Government should reduce this year, only a quarter will come through tax increases and economic recovery. The remainder (26 600 million, nearly double the recortazo Zapatero announced in May last year) will be achieved via the adjustment of current payments or through council tax increases. Only part of this adjustment will result from the measures already announced (such as the freezing of pensions and civil servants). The rest will have to make playing for the umpteenth time the pockets of citizens.

    With this scenario, the Inspectors believe that "it is not unreasonable to consider that the perceived lack of compliance with the fiscal consolidation path would lead to a high degree of probability to the inability to finance the 192,000 billion the Treasury should issue" only in the first six months of the year. "If this should occur, the only solution would be to request financial assistance to members of the European Union, the dreaded rescue, "they conclude.

    Another issue on which the spokesman called the attention of this group is the evolution of the budgets of the regions, which could give more of a surprise. De la Torre is concerned "the possible emergence of hidden deficit in some way in the territorial governments. " That assessment comes after the new government of Catalonia has been advised that the accounts that has been passed by the PSC led tripartite hidden half of the deficit.

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  • 60% of workers retires before age 6560% of workers retires before age 65.

    More than half of workers, about 60%, retiring in Spain before reaching the legal age of 65 years, according to a study by the insurance company Axa.

    The report published today reveals that only 40% of retirees retired at age 65 established by the Act, which contrasts with the current Government's goal of extending the retirement age to 67 years, which is opposed 74% of the Spanish, the study said international insurance.

    These figures represent an increase in early retirement of five percentage points in just three years, since according to the report, in 2007 workers expected to retire at the age established by law amounted to 45% of the total.

    Furthermore, 20% of early retirements occurred at the behest of the company, reflecting a "clear pattern of major Spanish corporations to retire early to a significant portion of its workers as part of a structural process, " said Luis Maria Sáez de Jáuregui, director of Life, Pensions and Financial Services of the insurer.

    Axa's report concludes that Spain is above the European average early retirement by eight percentage points.

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  • The judge will allow you to insult your boss, not your business.The judge will allow you to insult his boss, but not his company.

    A statement confirming the dismissal of a bus driver in the logbook, wrote "whore operating company. " For the Board, expressions like this "undermining the reputation of the company. "

    The Superior Court of Justice (TSJ) from La Rioja to be justified disciplinary dismissal of a bus driver in the logbook, wrote words such as "whore operating company. " For the court, the adjective "attentive to the reputation of the company. " There were these the only language used by the employee of Coach Martinez SL He also left other expletives written: "This is full of bastards, the clerk's largest and Matilde, ditto" and "sucks ass, quehasko" or "what pigs, " referring to the service we had to do that day.

    The severity with which, on this occasion, Justice punishes the worker contrasts, however, with other court decisions are not considered grounds for dismissing an employee on call to his superior "thief and son of a bitch" because the climate of tension in the company for its financial situation.

    Even more perplexing cause other resolutions like the one issued by the High Court of Andalusia (TSJA) in which the physical assault of a worker to his boss did not deserve the maximum penalty work because, at the discretion of judges, "does not have the required seriousness."

    The most notable difference is observed between one and other resolutions is that on this occasion, the worker not only lashes out against his superior and colleagues, but also against the company he serves.

    Moreover, the court finds circumstances that may not mitigate the conduct of the worker, such as the state of nerves which can be found in knowing that going to be fired or insecurity that causes the employees that the company is in a serious economic situation.

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