Which types of taxes do tax rebates take effect for?
These are the following types of taxes:
1. VAT and Customs Fees (Impuesto sobre el Valor Añadido (IVA) and El Arancel Aduanero) on personal items that are sent by mail. When a parcel is sent by a private entity to another private entity, VAT and customs fees are not charged, granted that the declared parcel value together with the price of delivery does not exceed 45 euros.
2. Income Tax in Spain (Impuesto de Sociedades (IS)). However, zero tax rate is applied in the case that a company incurs a loss during the accounting period—that is to say, when the financial statements reflect a negative tax base.
3. Economic Activity Tax (Impuesto sobre Actividades Económicas (IAE)). During the first two years of their economic activities, all companies are exempt from paying this tax. Starting in the third year, only those companies whose net revenues (importe neto de negocios) exceed 1 million euros are obliged to pay this tax.
4. Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas (IRPF)). The tax-exempt minimum is established at 5,550 € for persons younger than 65 years old. Starting at 65 years old, the sum increases by 1,150 € per year, and starting at 75 years old, by 1,150 + 1,400 €. Also, there are tax-exempt minimums on dependents of 2,400 € for the first child, 2,700 € for the second child, 4,000 € for the third child, and 4,500 € for the fourth child and subsequent children. When it comes to children younger than 3 years, the above-mentioned sums are increased to 2,800 €. The dependents in the ascendant line are allowed to apply for the following tax-exempt minimums: 1,150 € beginning at 65 years old and 1,150 + 1,400 € beginning at 75 years and older.
5. Individual Entrepreneur Quota (Cuota de Autónomos). Since 2013, there has been a rebate for new individual entrepreneurs in Spain. Instead of 267.03 €, they pay 50 euros during the first 6 months of their activity. (Currently, the government is working on new legislation called, «On Individual Entrepreneurs», by which they plan to extend the rebate, or “grace,” period up to one year.)
If you have any questions related to the tax rebates in Spain, feel free to contact our company, INEEDSpain. Our specialists will gladly provide you with a consultation on all issues related to the current tax payment system in Spain.