Learn about the advantages of this special regime in the Corporate Income Tax return for the 2014 fiscal year.
If you are the administrator of a company that had a turnover of less than 10 million euros in the 2013 financial year, you will be interested to know what incentives the Corporate Income Tax regulations offer you.
This is the special regime for Small Businesses and, below, we list the most important points:
I.- Amortization Freedom:
a.- Investments for the year: New tangible fixed assets and real estate investments may be freely depreciated provided that the following requirements are met:
- During the following twenty-four months, the company's total average workforce will increase.
- and that increase is maintained for an additional period of another twenty-four months.
The amount of the investment that may benefit from the free amortization regime will be the result of multiplying the figure of 120,000 euros by the aforementioned increase calculated with two decimal places.
b.- Low-value investments: New tangible fixed assets whose unit value does not exceed 601.01 euros may be freely depreciated, without further requirements, up to a limit of 12,020.24 euros for the tax period.
II.- Accelerated Amortization:
a.- Investments of the year:New items of tangible fixed assets and real estate investments, as well as items of intangible fixed assets, may double their amortization without further requirements.
b.- Intangible fixed assets with a defined useful life and goodwill, acquired in the tax period in which the ERD conditions are met, may be deducted at 150 percent of the amount of the established amortization.
c.- Assets subject to reinvestment: The tangible fixed assets and real estate investments related to economic activities in which the reinvestment is made within the periods regulated in article 42.6 of the TRLIS, of the amount obtained in the onerous transfer of tangible fixed assets and real estate investments, also related to economic activities, may triple their accounting depreciation.
III.- Debtor insolvencies:
The impairment loss on receivables arising from possible insolvencies will be deductible up to a limit of 1% of existing debtors at the end of the tax period, unless an individual impairment loss has been recognized or the debtors' impairment losses are not deductible.
IV: Tax Rate:
The applicable tax rate for these companies, for the purposes of the tax corresponding to the 2014 financial year, is as follows:
- For the portion of the taxable base between €0 and €300,000: 25%.
- For the remaining portion of the taxable base: 30%.
Additionally, and although it is not included in the section of the law dedicated to small businesses, please note that if you have this status, Article 25 of Law 14/2013, of September 27, 2013, will allow you to access the very interesting deduction for investment of profits under the conditions described in the law.
In corporate taxation, a thorough understanding of the subject makes all the difference. We invite you to consult us about your specific circumstances via email at ambit@ambitassessor.com or atour 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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