FISCAL CHANGES FROM SEPTEMBER 1st

FISCAL CHANGES FROM SEPTEMBER 1st
IVA RATES UPDATED

Form September 1st. All the IVA rates are going to be as follows:

GENERAL                  18% -> 21%
REDUCED                  8%   -> 10%
SUPER REDUCED                 4%  no changed

Some of the activies that were included on the reduced level and will be now on the normal level are:

• Hairdresser:(Only big brands, not little businesses).
  
• Spectacles:Cinema, Theatre,Circus..
• Disco and dancing rooms
• Gym
• Funeral and decease services 
• Exhibitions
• Some health assistance services

RECARGO DE EQUIVALENCIAThese rates are also going to be modified. from September 1st the new rates will be:

General 5,2%
Reduced  1,4%
Superreduced 0,5% (no change)

SELF-EMPLOYED RETENTIONSOne of the most important fiscal changes the government has been adopted and to be effective from September 1st is that for all the self-employed professionals (autónomos) who were producing invoices with 15% income tax retention totheir clients, they will need to produce invoices from 1st September applying the 21% retention. For new activities percentage the upgrade is from 7% until 9%.

This will be effective for 2012 and 2013 and after these years the percentage will be the 19%.

As we said, this is only to be applied to those self-employed producing invoices with retentions. If due the kind of your activity, you were not including the retention, this is not affecting you.

If you have any question, please do not hesitate in contact us.