investment
Deletion of the Tax Equity and other changes to the Corporate Income Tax, VAT and IGIC
ImageBuenos morning everyone, from here we hope that Santa Claus is kind to everyone. And what is the Government was also set up giving us the Law 4/2008 of 23 December, abolishing the levy of wealth tax, generalize the system of monthly return on the value added tax added, and further amending the tax legislation.
A law in approving a series of measures which we will summarize:
Amendments to Corporate Income Tax Law, are modifications of tax adjustment as a result of adaptation to the new PGC, though that was promised to the tax neutrality of the accounting change, not clear.
The abolition of wealth tax, which does not mean that you should not do, but will be subsidized by 100%, ie as a simple model is informative.
In the area of income tax non-residents, changing the regulation of mutual agreement procedures to establish that during processing is not interest for the period.
The long-awaited bonus for the activities of Road Transport.
Changes in VAT and IGIC, such as the period that must pass in order to proceed to the reduction of the tax base relating to transactions wholly or partially uncollectible, the possibility for taxpayers who elect to do so, to implement a system consistent in the application of credit balance outstanding at the end of each settlement period. Taxpayers who choose this option must account for VAT on a monthly basis anyway.
There are a number of other changes though in the list above are the most important from our point of view
Regards and remember you have a link to the law in the name of it.
What we can not forget the time of making the declaration
Additional information on adjustments and deductions, annual accounts 2010, income tax statements for prior periods, statements and payments on account of 2010 personal income tax, VAT. related income tax check tax adjustments, tax optimization, non-deductible expenses, depreciation, tax loss compensation in previous years, Tax credit for reinvestment of extraordinary income, deductions for domestic double taxation (dividends and capital gains) and deductions in the share and its limits.
Additional information on adjustments and deductions
The obligation to submit information prior to the declaration, through an attached form whose submission is electronically through the electronic record of the AEAT, on the following assumptions:
When the statement has been placed in a negative correction to the result of the profit and loss account in the amount not less than 50,000 in the section on “other corrections to the result of the profit and loss account”, and must describe the nature the adjustment made.
When the amount of the deduction generated during the year (whether to apply or be pending), is equal to or greater than € 50,000 in deductions:
For extraordinary income: identifying the assets transferred and the assets in which investment is realized.
For environmental investments: identifying investments.
For research and development and technological innovation: identifying investments and expenditures that give rise to deductibility.
For export activities: identifying investments and expenditures that give rise to deductibility.
Annual Accounts 2010
They have the basic information to be incorporated into the model of corporate income tax. In the model declaration of income tax models are integrated normal accounts, and SMEs abbreviated balance sheet, income statement and statement of changes in equity. Not included, therefore, the state cash flow or memory. In addition, organizations subject to the accounting standards of the Bank of Spain, the insurance companies and investment institutions have specific models and will include information on its financial statements on pages 200 model specific.
In general, if completion of a negative starting balance sheet, profit and loss account and statement of changes in equity, it shall be entered preceded by the mathematical sign minus (-).
Statements of income tax of previous years
Give us clues about differences between taxable income and accounting profit that can reverse in 2010, tax losses that can offset, balance deductions applied in the past to draw from now, etc..
Returns and payments on account of 2010 personal income tax, VAT. related income tax
Magnitudes to square the statement contained in the Company with: IVA (annual summary), 190 retention, 180 lease of real estate withholding, 193 (annual summary of deductions from capital, etc.).
Instalments of 2010
Certificates of withholding tax on real estate leases on investment income earned from entities under the attribution of income, if the company is participating or commoner or donations or gifts made in the exercise and gifts or donations.
Check fiscal adjustments
We must analyze and review accounting and possible differences with the fiscal criteria. Keep in mind the fiscal adjustments to the implementation of PGC 2007.
Tax optimization
The points of impact for proper tax optimization lies in the determination of the tax base and the tax credits.
Expenses not deductible
You have to identify the various items of expenditure accounting that are not tax deductible (fines, criminal or administrative penalties, donations or donations). In your case you must make a positive adjustment to book income by the amount of expenditure accounted for.
Depreciation
We review the methods and depreciation rates used in accounting to see if they are supported by the tax law.
Offset of tax losses from previous years
Can practice in the next 15 years. This offset the society can practice at their convenience, as an instrument of tax optimization.
Tax credit for reinvestment of extraordinary profits
Check if we have integrated capital gains in 2010 or in previous years, likely to benefit from this deduction provided reinvestment. The tax credit rate and the applicable rules are those of the year in which we integrated the rent.
Remember that there is a requirement to submit pre-filing information through a form, where the amount of the deduction generated during the year (whether to apply or be pending), is equal to or greater than 50,000 euros, identifying transferred assets and property in which the investment is realized.
Deductions for domestic double taxation (dividends and capital gains)
Check if you have pending application and deductions from previous years. This same applies to the deduction for international double taxation.
Tax credits and limits
Deductions are a good tax optimization tool that companies must make proper use, respecting the legal limits. Note deductions for investments and the percentages for the year 2010 that have been vary from previous years.
Remember that there is a requirement to submit pre-filing information through a form, where the amount of the deduction generated during the year (whether to apply or be pending), is equal to or greater than 50,000 euros in the following deductions:
For environmental investments: identifying investments;
For research and development and technological innovation: identifying investments and expenditures that give rise to deductibility;
For export activities: identifying investments and expenditures that give rise to deductibility.
Smaller companies: remember that for these companies (turnover below the previous year to 8 million) can take a number of incentives:
Accelerated depreciation with job creation: possibility of new elements freely amortized plant and equipment and investment property if the average number increases. Accelerated depreciation amounts to a maximum of 120,000 euros per man / year increase in staff.
Accelerated depreciation for investment of limited value: it can be applied to new property, plant and made available to the body in the exercise, having a maximum value of 601.01 euros each, with a maximum repayment of 12,020 global free , 24 euros.
Accelerated depreciation of new items of tangible assets and real estate investments: can multiply by 2 the maximum coefficient of linear depreciation tax tables.
Fixed amount of the debit balances not individually equipped, 1%.
Accelerated depreciation (calculated by multiplying by 3 the maximum coefficient of tables) applicable to tangible fixed assets and investment property in which the reinvestment is materialized for the deduction for reinvestment of extraordinary profits.
Deduction for promotion of information technology and communication, with rate of 3% in 2010.
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Tags: personal income tax, related income tax, tax optimization, tax statements, the declaration, VAT | 
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Reforming a tax crisis, Francisco de la Torre Diaz Expansion
Always difficult to make an assessment of urgency for legal reform, and this is the corporate tax, which is very important, not the exception. Must start with the fact that taxes are set to raise, especially in times of budget crisis. Consequently, a tax levy has gone from more than 44,000 million euros to 16,000 million, losing more than 60%, a tax is clearly in crisis and needs a thorough reform. Although not everything has reformed the tax failed, they have addressed some critical issues to ensure the collection and operation with minimal distortion.
First, it has set a limit to the deduction of interest expenses. This measure was implemented in major European countries and was essential in Spain. A situation where you have many foreign income exemption, dividends and capital gains earned abroad, and absolute liberty to deduct the expense necessary to obtain this income was literally unbearable. If, in addition, Spain was a country with a corporate tax rate comparatively high, the multinational groups concentrated their borrowing in Spain, where it was easier, because there were no limits, and cost, since the tax was higher. This had devastating effects on the collection, but also in the indebtedness of companies, one of the main problems of the Spanish economy.
Benefits abroad
This limitation means that in future no more profitable to invest abroad in Spain for purely fiscal reasons. Previously, foreign investment was better treated than the investment tax in Spain. This was because foreign income were exempt (not numbered), while other financial expenses deducted (subtracted) from the tax base. In domestic transactions, all added and subtracted, thus paying more taxes. The defective tax legislation entailed creating jobs abroad at the expense of its destruction in Spain. We could not afford.
Another reform that we had some time calling for was the elimination of accelerated depreciation without maintaining employment. This measure in some large companies, which by its business model had to make ongoing investments, which were caused continually deferring the tax, ie it should pay no never. Moreover, only large companies could finance investments, as they were the only ones that had access to financial markets. Consequently, SMEs, which are the main creators of jobs, competing on unequal terms. If we join the withdrawal of the job maintenance requirement, which led to EREs in large companies with profits, we were also faced with a tax measure totally contrary to the creation and maintenance of employment, at the same time extremely burdensome to the treasury public.
Of other reform measures, which are purely tax collection, you can not make a very positive assessment. Take the amortization of goodwill of a merger, or acquisition of a non-resident owned (the famous Article 12.5 of the Tax Act) to one hundred years is at least surprising. This should be temporary and recover a reasonable time for repayment, when the worst budget crisis has passed. We are not talking to correct a structural defect of the tax, but to collect, although this limit the investments that companies have to make. Something similar applies to the establishment of a minimum installment payment. If the company ultimately did not have to pay both corporation tax, has granted an interest free loan to the Treasury for a period that may exceed one year. Such measures could be criticized in the past, but very hard on a budgetary review. What you need to ask is to restore a more balanced when the worst of the crisis has passed.
In general, the correct tax reform, in my opinion, the most serious structural defects, which is significant and positive. This reform also has purely tax collection measures, which will hopefully be up within a period not too long. So that would address the comprehensive reform of the tax that seek not only collection but also equity and competitiveness of enterprises and economic growth.
Posted in Entrepreneurs, investment | Tags: a corporate tax rate, a tax levy, budget crisis, Reforming a tax crisis, the corporate tax | No Comments »
Options for Investing Money
Often do not know what may be our best investment, but what if we need to know is you have to diversify into several options, so as not to take such large risks when investing.
Here are some options with which we can invest money and get very good results:
• Business: an option to invest money is to buy a business or a franchise, for this we must look to both the business is accredited to know if it’s worth acquiring, as it is not wise to purchase something that is not going to bring results. Good thing is that if we are smart and give good management, this business can give us a good profit.
• Stock Exchange: a market in which to invest money and achieve very good dividends, but the market is more risky depending on which option we exercise in action in this type of investment is recommended so that you can diversify, to run minimum risk of losing everything. These investments often yield high dividends but market is very variable.
• Real estate: Investments in real estate if we do, is the most profitable investment that leaves us, and which has less risk of loss.
• Forex Currency: this involves the buying and selling dollars, pounds sterling, Euros, etc. In this market you have to keep very active because they buy the currency when low, to sell when they rise, the market is very fickle and we do not know when it will go up or down, but that it can leave us huge profits.
• Gold: an investment is a rare, but can bring good profits; these investments can make direct purchases in either gold bars, coins, or securities. The investment in this market should do when in low and sell and when to rise, so we see we already have sufficient gain.
All these types of investment money, are very good as it can get very good earnings and as I said before you have to diversify so as not to risk losing everything.
You must also pay close attention to investments such as gold, foreign exchange and forex stock market, and that we should be ambitious and we must learn when to sell in order not to lose all the capital invested, it is often better to lose or gain little losing everything.
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