The Corporate Income Tax Return is approaching , and that is why we would like to share with you a series of tips that we believe may be of interest to you.
Perhaps our first recommendation should be that this tax is not just something to be paid, but something to be planned for. The decisions you made throughout the past year and the criteria you used when accounting for your transactions will largely determine your tax liability.
Having said that, it is also true that we still have time to implement a series of highly relevant measures, some of which can reduce your tax bill and others reduce the risk of inspection:
- 1. Maximize the possibilities offered by tax regulations. Naturally, you need to know which allowances or deductions you can claim, but don't stop there. The correct application of special tax regimes, deductible expenses, amortization, depreciation or provisions can significantly reduce your tax bill. A thorough understanding of the tax makes all the difference.
- 2. Approach the Tax Law Reform Correctly: Whenever there is a substantial change in tax regulations, opportunities arise that should be seized. Last December, we recommended some measures on our Blog.
- 3. Remember the latest developments in this area. We assume you correctly apply the Related Party Transactions, take into account whether you are part of a group of companies , and know which allowances may be exempt and up to what limit. However, this is a rapidly evolving area, and you must stay up to date on all changes, including the most recent ones. In this regard, we recommend that if you haven't already, you subscribe to our blog.
In this article, we will list some of the most relevant modifications, unfortunately of a limiting nature:
- Limitation of expenses paid due to termination of the employment relationship, whether common or special.
- Restriction of tax-deductible depreciation for companies that are not small businesses.
- Non-deductibility of the impairment of the value of equity interests or own funds of entities.
- Non-deductibility of losses from permanent establishments abroad
- Limitation on the compensation of negative tax bases.
- Deductions: New deduction for investment of profits or modification of the deduction for job creation.
- 4. And, if it's a small business (with a turnover of less than ten million euros), you'll certainly be interested in applying for the incentives that the Law provides for this type of company. Learn about them here.
A thorough understanding of the law and its constant updating is essential to take advantage of the many opportunities it offers and to avoid unpleasant surprises with the authorities.
At Àmbit, we can offer you professional advice and support. Don't hesitate to contact us:ambit@ambitassessor.com
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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