Fiscal fees in 2015 decrease for small and medium companies, in order to improve INE statistics stating than 80% of businesses died before reaching first year of life. And from the remaining 20%, only half of them get to their fifth anniversary.
One of the most celebrated measures has been the lowering of Corporate tax from 30% to 28%, reaching 25% in 2016. On top of that, new companies would only pay taxes on the first period resulting with a positive tax base, and 15% taxes on the next period. A levelling-out tax would be create to compensate potential losses during five years and a capitalization reserve of 10% over profit (limited to 1 million Euros maximum)
Freelances can feel lighten up by paying 19% of income tax instead of 21% (18% in 2016). On the contrary, reduction of income tax disappears, as well as Corporate tax to companies with less than five million Euros revenues and less than 25 employees. For individuals with an annual salary below 15.000 Euros, since last July they have an income tax of 15%, while before was 21%.
However, deductions for indefinite hiring contracts disappear. As far as value-added-tax on digital products, from now on it should be applied the one from the buyers’ country. That means that if a Spanish ecommerce platform sells a product in an English city, the English VAT should be taken into account. To avoid a big hassle related to this issue, the “Mini Ventanilla Unica” has been set up.
But a new and polemic tax shows up. Spanish companies located outside of Spain, especially start-ups, have to go through the requirements of the Tax Administration Spanish Agency. This tax, Known as exit tax, is included in the fiscal reform approved on the 1st of January this year.
What is the Exit Tax?
The Exit Tax, described in the Article number 95 Bis of the Income Tax Law, is the most criticized aspect for entrepreneurs with international vocation. Their opinion is that tries to tax big patrimonies but it could be harmful for some start-up’s internationalizations. A similar tax exists in other counties, such as USA, France and Germany. Applying this tax, shareholders owning more than 25 % of a more-than-one-million-Euros company should pay taxes on the theoretical value of the share.
All these measures pretend to improve the fiscal environment for entrepreneurs and freelances in Spain, turning their businesses in main players in a global competition.