Discover the key factors to consider when preparing for the 2015 fiscal year-end, regarding Corporate Income Tax
As we have announced in previous posts, the Tax Reform that was forged at the end of 2014 profoundly affects the settlement of Corporate Income Tax for the current fiscal year.
Back then, we wanted to share with you a series of tips for tackling the reform in this area, taking into account the changes that were going to occur in the short term. Now it's time to start preparing for the end of 2015 , and therefore, we would like to list what we believe are the main items we should consider. We believe that the breadth of the measures that must be taken into account and the number of modifications that the reform has incorporated make it advisable to address them in several installments, which will follow one another over the next few weeks.
These are our first tips:
– The concept of “asset-holding entity” is redefined for this fiscal year. If your company falls under this category, remember to apply its specific tax regime.
– Check if you need to make tax adjustments in your accounting and calculate their tax effect. Similarly, check if you need to allocate your expenses or income to a different period than the one in which you recorded them.
– You can allocate your income proportionally, based on the due date of the payments, in the case of installment or deferred price transactions.
– As we mentioned in the cited article, the 2014 fiscal year was the last in which certain impairments in your assets were deductible, but it is still possible to deduct impairments of inventories, uncollectible debts or irreversible losses.
– Remember to correctly apply the new simplified Amortization Table, as well as its transitional provisions. Consider whether it is possible, and advantageous, to apply an amortization system other than the straight-line method (constant percentage, sum-of-the-years'-digits method) or to propose a specific plan to the Administration.
-If you acquired goodwill, you may deduct, under the conditions established by law (Art. 13.3 LIS), one hundredth of its value. The remaining intangible assets with indefinite useful lives indicated in the aforementioned article may be deducted with a maximum annual limit of 2 percent.
– Check if you are interested in recording and allocating any provision for expenses that are deductible for tax purposes, such as risks arising from repair guarantees within the limits set by law, amounts demanded judicially from the company and likely to materialize, certain environmental actions, compensation to which the company commits due to the approval of a workforce reduction plan,…, or if, on the contrary, you must adjust provisions recorded that, due to Article 14 of the Law, should not be deducted.
Next week we will continue to provide you with other tips that we believe can help you in preparing and optimizing your tax return.
We invite you to consult us about your specific circumstances via our email address ambit@ambitassessor.com or at our offices.
We are experts in national and international taxation and would be happy to help you.
Marc Ivars,
Tax Area
Àmbit Assesor
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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