2010 NON RESIDENT TAX JUST FOR 30€

2011 has arrived and within it, it also starts the period to declare the 2010 Non Resident Tax for those owners of a property in Spain who are residents in a foreign country. You have the whole year (2011) in order to declare it, but as you should already have the paperwork from SUMA (Alicante region office for local taxes) it could be a great idea letting this presented from now.

A person is considered resident in Spain by the Tax Office in this cases:

- Spending more than 183 days (Half year) in Spain.
- Has the work activity main core set in Spain.
- His/her wife, husband, and/or children until 18 years old are residents in Spain.

The fiscal residence in another country has to be certified by the Fiscal Authorities from that country. And usually the certificates are valid for a year.

A person could have the residence certificate in a country, but could not be consider fiscal residence in it. Residence and Fiscal Residence are different things.

A house could also being rented by its owners and if they are non resident, they have to declare every quarter the incomes in a different income tax. The time in the year

Normally we talk about the Non Resident Tax only over properties, but it is applied for all the incomes that a Non Resident could receive in Spain (Job, Renting, Capital Gains, etc). The deadline to declare the tax changes depending on what kind of incomes are you receving.

We have one of the lowest quotas in the are. Our fees are only 30€. Come to visit us in our office. We will be happy to welcome you and we also offer low cost fees in other services including business registration, accountancy, conveyancing, taxation, NIE& Residence, Traffic Managements, Wills and more.

We are in
La Mosca Commercial Centre, Upstairs, Unit 8
Flamenca Beach, ORIHUELA COSTA

Phone: 965327714 / 615722273

4th QUARTER TAXES

January 31st is the last day to present the IVA & advanced income tax payment for the 4th quarter (July, August and September). When you collect your taxes you will also get the annual informatives declarations.

Bear in mind the deadline if you are going to pay it by bank account is the January 25th, and Tax Office will charge you later on last day of declaration deadline.

[UPDATED] MERRY CHRISTMAS

VP ADVISERS WISHES YOU AND YOUR FAMILY THE BEST IN THESE DAYS, A HAPPY CHRISTMAS AND A HAPPY AND PROSPEROUS NEW YEAR.

FELIZ NAVIDAD Y FELIZ 2011

PD: Our office will be close all day on Friday 24th and Friday 31st .

UPDATED: Due to bank holidays, January 6th our office will be close.

TAX CUTS FOR SMEs

Spanish government president, Rodríguez Zapatero, announced tax cuts for small and medium-sized enterprises, and the end to the 426€ benefit for the unemployed as from February in an another anti-crysis measures pack.

Zapatero stressed that the new tax measures were designed to promote investment and employment, especially for SMEs, hence the reduction in corporate income tax by extending the tax base from its current 120,000€ mark to 300,000€. Until now, enterprises with incomes higher than 8,000,000 € were not considered SMEs. Now that limit is set in 10,000,000 €.

The end to the 426€ benefit for unemployed people with no other cover has also been announced. The benefit payments will come to an end in February, when the last extension finishes.

ABOUT DISCHARGING PATIENTS WITH TEMPORARY DISABILITY

Employment Inspection Authority doctors and Social Security National Institute doctors are able to discharge patients with temporary disability as public health care system doctors were doing until now. This new situation is comming into effect from November 26th and its final goal is helping to avoid fraud from workers who are illegaly extending their temporary disable period.

Until now these doctors were only able for making information reports or checking some cases but not for discharging the patients.

This measure is included in Ley 35/2010.

OFFICE CLOSED ON DECEMBER 6th AND 8th

Dear clients, due to Constitution Day and Inmaculada Virgin Day, our office in La Mosca Commercial Centre will stay closed on December 6th and 8th. Tuesday December 7th we will be opened in same opening hours as always (9:30h-14:00h and 15:00h-18:00h). Same for Thursday and Friday.

Sorry for the inconveniences and have a nice holidays.

ELECTRICITY BILL AGAINST TAX EVASION

From the beginning of 2010, the electric companies are obliged to declare a list of electricity charges by cadastral reference number. First declaration will be made on March 2011 with the 2010 information.

What does this mean? We all know that many people are not declaring rent from houses where are located business or professional activities. So the tax office has supposed there is a huge fraud on this. A business should to be set up in commercial units or premises. The rent has to be declared by the owner and the 19% payed by the tenant every three months.

By this decision, Hacienda could be able to check if some "empty houses" have electric activity that should be declared.

The Modules fiscal way will be also affected by this because many incomes declarations are depending on "Electricity charges" parameter.

[UPDATED] TAX OFFICE TELEMATIC NOTIFICATIONS IN 2011

Today we can know by the Order in Council 1363/2010 that from the 1st of January 2011 on, the spanish Tax Office will send the notifications to limited liability companies (SL) and public limited companies (SA) besides others (those legal entities whit a NIF that starts by N,W,U,V) by telematic ways instead of the actual paper notifications.

All these companies should have a digital signature in order to log in into their electronic addres account on the Agencia Tributaria website, and certify the notifications reception.

According to the government, this action has been taken following the costs cut plan, but many companies maybe are not still ready to apply this.

UPDATED: Finally, Mr. Gaspar Caballo, AEAT Management CEO had said recently that this new law will only be applied on the bigger companies (Grandes Empresas), or companies who were registered in the monthly IVA refund or export businesses. There are no changes in this over the medium and small companies by the moment.

OFFICE CLOSED ON NOVEMBER 1st

Next Monday, November 1st our office will remain closed all day due to national holidays. Sorry for the inconveniences.

UNEMPLOYED BENEFIT FOR SELF-EMPLOYED (AUTONOMOS)

From November 7th on, self-employed people(autónomos) will be able to apply for the unemployed benefit in case they will be forced to stop their activity (non voluntary).

What are the requirements?

1. Every autonomo, has to make the contribution over the unemployment fee if wants to apply for it in the future. This is the 2,2% over the contribution basement (the minimum basement is 841,80€). -Remember this: the social security quota is a percentage over your basement.

2. For being able to get the unemployed fee, the self-employed worker has also to add the proffesional eventualities (accidents and professional illness) to their Social Security contribution. Most of autónomos were not making this payment because they have a non-risk activity, but to apply for the benefit it will be an obliged requirement whatever the activity is. So for those who were not paying it, the cost will be a percentage from 1% to 6% depending on the board (you can download in Spanish)for the activity.

3. The benefit lenght is going to depend over the lenght of the contribution period. It has to be at least one uninterrupted year (counting from November 8th).

* Between 12 y 17 months contributed: you will get 2 months of benefit.
* Between 18 y 23 months contributed: 3 months.
* Between 24 y 29 months contributed: 4 months.
* Between 30 y 35 months contributed: 5 months.
* Between 36 y 42 months contributed: 6 months.
* Between 42 y 48 months contributed: 8 months.
* More than 48 months contributed: 12 months.

3. The benefit will be the 70% of the contribution basement for the last 12 months.

4. Like a contracted worker, if an autonomo choice to stop his activity, he will not be able to apply for the unemployment fee (for being able he has to be forced to be on dole). How it can be legally recognised "forced":

- To justify 30% losses in a year, or 20% in two years without counting the first year of activity,.

- A divorce that affect the business.

- To get the business licence canceled.

- Closing due to a judge order.

- Because Force Majeure(unforeseeable circumstances).

At the end is a personal choice for the Self-employed worker to increase his contribution or not if wants to be able to apply for the unemployment fee if things go wrong.