Royal Decree-Law 4/2013 of 22 February introduced a reduction in the tax rate applicable to corporation tax for newly created entities formed from January 1, 2013.
During the first two tax periods in which the tax base is positive, that is, in the first two years in which benefit is obtained, the corporation tax will be calculated according to the following tax rates:
- 15% for taxable income between zero and 300,000 Euros
- 20% for the remaining tax base.
Its application is excepted when taxpayers have to be taxed at a different rate to the general.
The Royal Decree lays a series of conditions that attempt to prevent the creation of companies by individuals who were already doing the same activity, either directly or indirectly. Thus, the reduction does not apply if prior activity had been carried out by other persons or entities and transmitted to the newly created entity. Neither will it be if during the year prior to the constitution, the activity had been carried out by a natural person who has an interest in the capital or equity of the newly created entity, more than 50%.
FOR FURTHER DETAILS PLEASE CONTACT TO VP ADVISERS.
No comments:
Post a Comment