Publications

Proportional deduction of VAT

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When a company makes both taxable and non-taxable transactions, is subject to the so-called proportional deduction of the VAT, whereby the company can only deduct the VAT attributable to taxable transactions. In case of the acquisition of fixed assets, entrepreneurs must adjust the initial VAT deducted during several years following the acquisition of an asset, […]

Publications

Amazon VAT Transactions Report explained

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VAT compliance can be a complex issue for online sellers, like Amazon sellers using the Forwarded by Amazon (“FbA”) arrangement. Cross border transactions trigger many complex VAT issues and oblige sellers to be aware of the VAT rules of different countries. Having said that, it is important to note that the basic rules are quite […]

Payroll

Taxation of stock options plans in Spain

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A stock option gives the holder the right to purchase a predetermined number of shares of a company, at a fixed price (the strike price), on or before a fixed date (the expiration date). To be given this right, the holder must normally pay something (the premium). However, when the stock options are given to […]

Publications

 Allowance for R&D activities in Spain

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Likewise, most countries, Spain tries to incentive the Research and Development (or “R&D”) activities by granting several tax advantages. We will refer in this post to the tax incentives granted in the Spanish Corporation Tax Research and development activities will give the right to deduct from the Corporation Tax payable a fraction of the R&D […]

Publications

Taxation of fixed assets in Spain

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Companies frequently use the assets that they produce or buy in their normal operations for their own use. In such cases, these assets must be recorded and treated as fixed assets, rather than as inventory of finished goods. This classification has several accounting and financial implications (it affects the working capital; the asset must be […]

Publications

New Tax Treaty between Spain and Qatar

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A new Tax Treaty between Spain and Qatar has recently been published. This Tax Treaty is based on the OCDE model and the main implications are: Dividends paid out to a resident in the other state can only be trigger a 5 % withholding tax. However, if the recipient is a company who owns at […]