Below are samples of the amended incentives applicable for the tax year commencing 1 January 2013:
* Newly created companies: Companies created on or after 1 January 2013 will be taxed at a reduced Corporate Income Tax (CIT) rate of:
* 15% on the first €300,000 of taxable profits,
* And 20% on any excess unless subject to other tax regimes.
* SMEs’ profits’ reinvestment:
* Technical innovation and R&D tax credit: Companies carrying out R&D and technically innovative activities may not be subject to the annual overall limitation on tax credits for such activities. Further, under certain conditions, reimbursement standard process of unused credits may apply.
* Employment creation credit related to disabled employees: The deduction for hiring employees with disabilities has been increased to €9,000 or €12,000 (from €6,000), based on the degree of disability. In addition, there is no longer a requirement to hire full time employees with an indefinite contract.
* VAT cash accounting system: Self-employed business owners and SMEs may defer payment of VAT until relevant invoices are paid. This new scheme will be implemented from 1 January 2014 and will be available under certain conditions.
* Patent box tax regime related amendment: Companies may benefit from a 60% reduction in the taxable base if income is earned through the transfer of certain intangible assets such as patents, drawings, or certain other forms of intellectual property, subject to certain conditions.
By introducing the “Entrepreneurs Law” Spain has opened its doors to promote and encourage international trade and business entry. It has created an inviting and beneficial environment for establishing international operations on Spanish soil.
For more information about opening a business overseas (http://www.nair-
International Business Guide (IBG) (http://www.nair-
Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts (http://www.nair-
About Nair & Co.
Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-
Read more on:Tax Planning for Expatriates (http://www.nair-