openPR Logo
Press release

ESP: Current legal issues

10-10-2012 11:39 AM CET | Politics, Law & Society

Press release from: bunk-alliance Rechtsanwaltsgesellschaft mbH

Recent legislative approvals: measures for budgetary stability and competitiveness.
After several quarters of slow recovery, the Spanish economy became intensely vulnerable to deterioration in the euro zone and plunged back into recession during 2011. Through the R.D. Law 20/2012, July 13, (B.O.E. 14/07/2012), relating to measures to guarantee the budgetary stability and promote the competitiveness, the Central Government seeks to recover the path of stable economic growth in Spain.
Among the measures approved in it, It’s necessary refer to the amendments to the Value Added Tax (I.V.A./V.A.T.), Corporate Income Tax (I.S.), and the Personal Income Tax (I.R.P.F.).

1) Amendments relating to the Value Added Tax (V.A.T.):

- General VAT rate goes from 18% to 21%, and certain products and services taxed at a reduced rate passes it to the general rate of 21% (flowers and ornamental plants, mixed service of catering, entertainment, nightclubs, entry to theaters, circuses, other entertainment, services rendered by individuals artists, funeral services, hairdressing services, digital television services, acquisition of works of art, etc.).

- Reduced VAT rate passes from 8% to 10%. This type is the one that applies to food, except for commodities or necessities, water, drugs for animal use, prescription glasses and contact lenses, housing, hotel and restaurant services, library and museum entry, certain works of renovation and home repair, construction or rehabilitation of housing, etc.

- Super-reduced VAT rate remains at 4%. This type is the one that applies to goods and services with regards to staple food: bread, milk, cheese, eggs, fruits, vegetables, books, newspapers, medicines for human use, vehicles for disabled, hearing aid, social housing, telecare services to people living in dependency.

- Purchase of new homes: Is maintained until 31/12/2012 the super-reduced VAT 4%. As of 01.01.2013 the reduced rate will apply 10% VAT.

- Renovation and reparation works performed in homes or apartment buildings are taxed at the reduced rate VAT 10%, if certain requirements are met. From 01/01/2014 on, those will be taxed with a rate of 21% in most of cases.

2) Amendments relating to the Corporate Income Tax (I.S.):

- During the years 2012 and 2013, the loss carried forward for entities with a turnover in excess of twenty million euros is limited.
- Temporary increase of partial payments. The minimum amount is raised from 8% to 12%.
- Extension of the limitation of deduction for financial expenses and extending it to all companies in general, not limited to the
membership of a group.

- New rate of 10% on income from foreign sources, exclusively until 30/11/2012.

3) Amendments relating to the Personal Income Tax (I.R.P.F.) :

- Withholding tax of 21% (instead of 15% now) applied from 01/09/2012 until 31/12/2013 to yield for professionals (i.e. architects, doctors, lawyers, and other activities falling under Sections 2 and 3 of the law for taxation of economic activities (Impuesto sobre Actividades Económicas), and earned incomes obtained teaching courses, conferences, seminars and similar. It is expected that as of 2014 the withholding tax will be determined at 19%.

- Certain works of renovation and repair performed in homes: As of 01/01/2014, the deduction of up to 20% with regard to personal income taxation is eliminated.

Date of entry into force of the R.D. Law 20/2012: 15/07/2012.

The law firm was established in 2003 by Dr. Artur Bunk, an Attorney-at-Law. Qualified in 1995, he was admitted to the Frankfurt Bar in 1997 after obtaining an LL.D. in European Law at the University Viadrina in Frankfurt (Oder). During his career he has worked with the German law firm Pünder, Volhard, Weber & Axster (now Clifford Chance), was Head of Office at Rödl & Partner in Poland, and Senior Legal Counsel at the Legal and Restructuring Department of KfW. In addition to German, he also speaks fluent English and Polish.

Our offices are based around 45 minutes from Frankfurt/Main International Airport in and approx. the same distance from Frankfurt City.

Thanks to the professional experience and background of our Principal and our Attorneys we are in a position to meet the highest requirements and expectations of international clients, which forms an integral part of our business philosophy, enabled us to establish a profound know-how base on international matters unmatched by law offices of comparable size and background. With our network of external consultants (auditors, tax advisors), we are well equipped to perform advisory services usually only found in much larger law offices. Our comparatively low overheads and flexibility enable us to provide our services on a competitive basis.
bunk-alliance has established a close cooperation with law offices in Italy, India, Poland, Slovakia, with auditors and tax advisory offices in Germany and Poland and various governmental agencies.

Office Worms
bunk-alliance
Goethestr. 15
67547 Worms
Germany

Phone: +49 6241 97249 0
Fax: +49 6241 97249 11

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release ESP: Current legal issues here

News-ID: 238228 • Views:

More Releases for Tax

Tax Software Market – Major Technology Giants in Buzz Again | TurboTax, Tax Sl …
The Latest Released Tax Software market study has evaluated the future growth potential of Global Tax Software market and provides information and useful stats on market structure and size. The report is intended to provide market intelligence and strategic insights to help decision makers take sound investment decisions and identify potential gaps and growth opportunities. Additionally, the report also identifies and analyses changing dynamics, emerging trends along with essential drivers,
Tax Software Market to Eyewitness Massive Growth by 2026 | Tax Act, Tax Slayer, …
The latest independent research document on Global Tax Software examine investment in Market. It describes how companies deploying these technologies across various industry verticals aim to explore its potential to become a major business disrupter. The Tax Software study eludes very useful reviews & strategic assessment including the generic market trends, emerging technologies, industry drivers, challenges, regulatory policies that propel the market growth, along with major players profile and strategies.
Industry Leading Tax Software Market For High-Volume Tax Businesses with Online …
Market Highlights Tax software is software that ensures tax compliance for income tax, corporate tax, VAT, service tax, customs, sales tax, use tax, or other taxes its users may be required to pay. The software automatically calculates a user's tax liabilities to the government, keeps track of all transactions, keeps track of eligible tax credits, etc. The software can also generate forms or filings needed for tax. The software will have
Kreston Reeves Tax Director achieves leading international tax qualification
Kreston Reeves, one of the leading accountancy and financial services firms located across London, Kent and Sussex, is proud to announce that Matthew Creevy, Corporation Tax Technical Director, has achieved the Advanced Diploma in International Taxation (ADIT), placing him in the highest echelons of international tax professionals. ADIT is an advanced level designation in international cross-border tax. The credential is designed by a board of world-leading experts and has been created
SMP Accounting & Tax appoints Rachael Hooper as Tax Manager
Russell Bedford member SMP Accounting & Tax Limited, one of the Isle of Man’s largest accounting and tax firms, has appointed Rachael Hooper as a manager in its Tax Department. Rachael will be working in all areas of UK, Isle of Man and International taxation, with a particular focus on UK resident non-UK domiciled individuals, Trusts and Inheritance Tax. After qualifying as a Chartered Accountant with a Big Four accountancy firm, Rachael
United Tax Group Announces Effective Tax Negotiators
United States (June 2011) – United Tax Group announces effective tax negotiators for clients. Tax negotiators work directly with the IRS so tax payers do not. The expertise of tax negotiators helps save clients thousands. Tax negotiators from United Tax Group are assigned individual clients. This means tax negotiators are working on particular cases assigned. Therefore, clients receive individualized attention for their case. This individualized attention by United Tax Group gets results.