Spain has a tax system that benefits business owners. If you are thinking of starting a business in Europe, Spain will be the right choice. One of the most important things to know when owning a business is the tax system of the country where your company is located. In this article, we gave information about corporate tax for those who want to start a business in Spain.
Spain's tax system is quite modern. With the reforms made in the tax system recently, the liabilities of taxpayers have been alleviated and simplified. The reduction in tax burdens has provided many advantages to business owners. The tax reform also includes regulations on corporate tax.
Corporate tax is a type of tax levied on the income of companies and corporate structures in Spain. The general corporate tax rate currently applied in Spain is 25%. In some cases, a lower tax rate may also be applied to newly established companies. Spanish corporate tax includes different tax incentives, especially for research and development and technological innovation. There are also tax credits applied to avoid double taxation. The discounted rate for entrepreneurs is 15%. These companies can benefit from the discount for two years if they meet the necessary conditions.
All companies must declare corporate tax, even if they do not operate within a calendar year. Accountable expenses are deductible in the Spanish corporate tax system, but there are some exceptions. Non-deductible expenses include dividends, gratuities, and fines or sanctions. Amortization of fixed assets is a tax-deductible expense as long as it is effective and accountable. Capital gains, income derived from the transfer of assets, are considered income and taxed at the rate applied to other income. If the resulting tax base is positive, it can be offset by negative tax bases from previous tax periods.