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Source: Arrabe Asesores 2 February 2011

Law 39/2010 on State Budget for 2011

Major developments in this fiscal year 2011

Most significant innovations under different tax laws and the recently published BUSINESS (General Budget Law 39/2010, Royal Decree-Law 13/2010, among others) and to be implemented from 1.1.2011, subject to certain exceptions set out:

Fiscal Issues:

Income Tax

* Increase personal income tax rate for high incomes. Has increased by 1% tax rate applicable to the general payable bases exceeding 120,000, € 20 and 2% for exceeding € 175,000.20.
* Elimination of the deduction of € 2,500 for births or adoptions produced after 01/01/2011.
* With effect from January 1, 2011, the deduction for investment in primary residence and rental housing deduction applies only to regular taxpayers in those years in which its tax base is less than € 24,107.20 a year. The law has established a transitional regime for taxpayers who, prior to January 1, 2011 have acquired their home or paid amounts for construction to continue to apply the deduction for investment even if they exceed the taxable amount.
* The reduction applies to income from the rental of residential properties rises 50% to 60% for rental contracts concluded as from 1.1.2011. To implement the reduction of 100% the lessee shall not have more than 30 years (previously 35 years).


* Effective for tax periods beginning on or after 01/01/2011, it increases the turnover threshold which enables this special scheme small size of institutions, from 8 to 10 million euros. They may also continue to enjoy the special regime applies to them during the three fiscal years following the date on which it reached that figure. It also increases the tax base section that applies the tax rate from 25% to 300,000 € (RD-RD-Law 13/2010 and Law 14/2010).
* For tax periods beginning in 2011, the tax rate reduced by maintaining or creating employment (micro) of 20% applies to taxable income bracket between 0 and 300,000 € and the rest based on 25% (RD -Law 13/2010).


It removes the legal obligation to issue "autofactura" in the case of reverse charge.


Are exempt from tax to incorporation, capital increase, and some other corporate transactions (RD-Law 13/2010)

Social legislation - employment:

* The minimum wage for 2011 is € 21.38 per day or € 641.40 per month (RD 1795/2010).
* Self-employed workers with 48 or 49 years old and listed on the RETA by a base less than € 1,665.90 monthly basis shall not elect more than € 1,682.70, unless they exercise their option to that effect before 30 -06 to 2011.
* The minimum contribution for self-employed at some point in 2010 and simultaneously have been hired to service a number of employees less than 50, have a value equal to that of workers covered in group 1 of the General Scheme (€ 1045.20, Order TIN/41/2011).
* Workers covered by the Special Scheme for Domestic Employees will quote for professional contingencies (accidents and occupational diseases) at the rate specified in the premium rate of FD Eighth of Law 26/2009, with subsequent elimination of additional contribution of 0.1.
* It establishes a new financial benefit to parents, adoptive or foster, when you work for the care of the child / dependent is affected by cancer or another serious illness. The beneficiary will have to reduce working hours by at least 50%.
* The extension of the duration of paternity leave to four weeks will come into force on 1.1.2012.


* The CPI annual General December 2010 stood at 3% (INE)
* Legal interest until 31.12.2011 are fixed in 4% and interest promptly referred to the Art.26.6 of Law 58/2003, Tax Code, is fixed at 5%

For any questions or to complete the contents of this can contact our office.

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