A compilation of state tax obligations that must be met when carrying out a business economic activity.
Carrying out a business or professional economic activity gives rise to a set of formal obligations. Some must be fulfilled before starting the activity, and others must be fulfilled during its development. These economic activities can be carried out by individuals (self-employed), legal entities (commercial entities), or entities without legal personality.
The purpose of this article is to guide you, in a very schematic and not exhaustive way, through the tangle of rules that deal with this issue.
Generally speaking, before starting an economic activity, a census declaration, forms 036 or 037, must be submitted.
Form 840 of the Economic Activities Tax (IAE) will only be submitted by those who are not exempt from paying the Tax, and before 1 month has passed since the start of the activity.
Once the activity has begun, we must distinguish whether the income is received by:
- 1. Self-employed individuals and entities without legal personality, who are taxed, basically, by Personal Income Tax, having to make, among others, advance payments, withholdings and annual declaration; and by VAT which involves a whole series of informative and settlement declarations.
- 2. Commercial companies, and we are treating this in a very schematic way, are taxed by Corporate Income Tax (IS – advance payments and annual declaration), must make withholdings and must comply with the obligations arising from the VAT regulations.
Regarding formal obligations in Personal Income Tax (IRPF), VAT and accounting for businesses, beyond the quarterly or annual declarations that must be completed and submitted, there are a series of duties that you should be aware of, which we will present in the following table:
As we have warned you, this article simply aims to give you very basic guidance and the list of duties we include is not exhaustive.
When dealing with the taxation of a business activity, seek the security of an expert in the field. At Àmbit Assessor, we are experts in national and international taxation and would be delighted to assist you.
Contact us via email at ambit@ambitassessor.com or at our offices.
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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