Tax rights and responsibilities

DRETS I DEURES FISCALS

In order to meet the objectives of general interest, such as building roads, hospitals and schools etc., Public Administration must obtain the necessary revenue. That’s the reason why Public Administration has the right to demand and the duty to provide the financial resources necessary to fund public needs.

These resources are obtained tax revenues (taxes, fees and special levies), among others.

Taxes are an amount of money that citizens are obliged by law to pay for government to have sufficient resources with which to finance public expenditure.

In our country, contributions made by citizens to contribute to the payment of public expenditure should be governed by the principle of economic capacity. Therefore, although all citizens should contribute (principle of generality), they do not always make it in the same proportion because not all have the same economic resources. The principle of equality states that citizens with the same economic capacity have to pay the same amount of taxes and that people with different economic capacity have to pay different amounts of taxes. Thus, the Constitution determines that the Spanish tax system, as it increases the wealth of each individual, increase their contribution to the common fund to pay for public goods and services (principle of progressivity). Although with certain limitations, because the Constitution also requires that the tax system does not take the principle of progressivity too far because the excessive taxation, may affect the economic capacity of taxpayers (confiscatory scope.)

All citizens must duely pay taxes to the State, autonomous regions and municipalities, and in periods following the set rules. Failure to comply with tax obligations will be subject to surcharge or penalty.

Notwithstanding the provisions of applicable double taxation agreements, foreign persons are subject, in general, to the same taxes and tax benefits that people with Spanish nationality.

Among the major taxes, include:

 

State:

Income tax for individuals -Income Tax- (Impost sobre la Renda de les Persones Físiques, IRPF)
It is an annual tax levied on income received by individuals (income from work, the exercise of economic activities...) according to their personal and family circumstances.

Deadline
In general, the presentation of the income tax return is done between 1 May and 30 June.

Place and form: 

  • In person at the offices of the State Tax Administration Agency (AEAT) in the offices of the Taxation Agency of Catalonia (ATC) in the offices of liquidators mortgage and any district office of the organizations collaborating (banks, savings banks or credit unions).

  • Electronically. 

  • For registered mail addressed to the delegation of the AEAT corresponding to the habitual residence of the taxpayer.

Value added tax -VAT- (Impost sobre el Valor Afegit, IVA)
It is a tax on deliveries of goods and services made by businessmen and professionals in developing their activities.

Deadline
Generally, the payment of the tax must be done by submitting:

  • Quarterly statements from 1 to 20 April, July and October and from all January (1-30).

  • The summary annual from 1 to 30 January.

Place and form: in person at the offices of AEAT or by electronic means (see page www.aeat.es).

Income tax on entities (Impost de Societats, IS)
It is a tax on benefits obtained by the entities (companies, for example).

Deadline
Payment of tax must be made by submitting:

  • Annual declaration. This, as a general rule, made within 25 calendar days six months after the end of the tax period (from 1 to 25 July).

  • Payments on account: from 1 to 20 April, October and December.

Place and form: in person at the offices of the AEAT, in any entities, or in some cases, even mandatory, by electronic means (see page www.aeat.es).

 

State taxes administered by the Regional Administration:

Inheritance tax and stamp duty (Impost sobre Transmissions Patrimonials I Actes Jurídics Documentats, ITPAJD)
It is a tax on: 

  • Onerous transmissions of assets between individuals (for example, sale of second hand properties).

  • Company operations (for example, the constitution or the capital increase of a limited company).

  • The stamp duty, which can be classified as:

    • Notary documents, namely the completion of certain transactions in a public registry access, for example, the first transfer of property or the creation of mortgage;

    • Business documents such as bills of exchange and documents with functions of rotation;

    • Administrative documents and / or judicial proceedings, such as rehabilitation and transmission of noble titles and annotations that are preventive in public records.

Deadline
The deadline for self-assess the tax and submit the documents is one month from the date on which the act takes place or the contract.

Place and form: In person at the offices of the ATC and the district office liquidators mortgage or, in some cases, virtual office electronically.

 

Autonomic:

The water rate (El canon de l’aigua)
It is a tax with ecological purposes the actual use or potential pollution of water and that his discharge may occur, without excluding those uses indirect, or from rainwater runoff, associated or not a process productive.
The fee charged by the supplier of water in its turnover or, quarterly, the Catalan Water Agency if the user gets their own water sources.

 

Local:

Within the local taxation system can distinguish, at the municipal level, including:

1. Tax is required, ie, those who have paid in all municipalities:

Property Tax (Impost sobre Béns Immobles, IBI)
It is a tax on ownership of property or ownership rights over them, regular payment and annual basis.
The calculation of the fee payable is performed according to the value rate of the property that, set by the Ministry of Finance from the data contained in the Real Estate Cadastre, takes into account the land value and the value of construction.

Economic Activities Tax (Impost sobre Activitats Econòmiques, IAE)
It is a tax, with general character, on the exercise of any economic activity whether a business, professional or artistic.
Are exempt from paying the tax:
- Individuals.
- All those companies with a net turnover of less than 1,000,000 euros.
- The first two years of startup activity.

Submission Form
Must submit the census declaration (Form 036 or 037) before the start of the activity at the Tax Administration (AEAT) is required by its tax address, in person or electronically.


Road tax (Impost de circulació)
It is a direct tax levied on the ownership of motor vehicles suitable for driving on public roads


2.Voluntary or discretional taxes. Among them we include:

Tax structures, facilities and works (Impost sobre construccions, instal•lacions i obres, ICIO)
It is a tax within the realization of any building, installation or work, inside de municipality, whenever required planning or building permit and is responsible for granting the City of imposition.

Tax on the increased value of urban land , also said, capital gains tax (Impost sobre l’Increment de Valor dels Terrenys de Naturalesa Urbana –IIVTNU- o Plusvàlua)
It is a tax increase in value of land (soil) in urban nature that is revealed when the property is conveyed or is transmitted or any real right over such property, in the period of time between acquisition by the transferor and the new transmission, with a maximum of 20 years.
The value of land when the current transmission will be determined to have effects on real estate tax.

Finally, make sure to mention the fees that may be established both by the central government, by the regional and by the local (taxes on certain services performed by the administration, eg. Register to the school, request a residence or work permit etc.).

Note:
For more information or for procedures related to the taxes of the Generalitat of Catalonia or leased by the State (eg inheritance tax and stamp duty or inheritance tax and gift), we address ourselves to www.e-tributs.cat or call us to the telephone 012.

If you need information on other state taxes (eg. Income Tax, VAT tax or income tax on entities IS), you can contact us www.aeat.es or call the #State Administration Taxes Agency (Agència Estatal d'Administració Tributària, AEAT)#: 901 33 55 33.

As for local taxes (eg. IBI, IAE or road tax) should contact the Council town.
Para cumplir con las finalidades de interés general, como construir carreteras, hospitales, colegios, etc., la Administración pública debe obtener unos ingresos determinados. Por eso, tiene el derecho de exigir a los ciudadanos el deber de aportar los recursos económicos necesarios para financiar las necesidades comunes.