The main novelties are introduced into the income tax for 2015 are:
· Amortization tables are simplified.
· The possibility to deduct the accounting impairment of fixed assets and fixed income, as is currently the case with equity portfolio is limited.
· Current consolidation measures such as increased percentages of installments is extended.
· Limiting BIN’s compensation is unified (although it may make unlimited basis up to a million euros) and the maximum time limit of compensation 18 is removed (will be compensated without time limit).
· The deductibility of expenses is limited by attentions clients 1% of turnover.
· The deduction for R & D + i is maintained, the film production and benefits to foreign shoots will occur in our country.
Some suggestions are also listed operations to be performed before 01/01/15 regarding:
* Transfers within the group.
* Impairment of non-current assets.
* Exemption income dividends and transfer of shares and participations.
* Removal of certain deductions.
* Reduction of the tax rate.
Finally indicate that last November 28 have been published in the BOE the Reform Laws Income Tax, Corporation Tax and VAT
Below we explain the major developments affecting the income tax and subsequently Tips to optimize the tax reform in the field of income tax before 01/01/15.
INCOME TAX AND MAJOR CHANGES UNDER THE TAX LAW FOR 2015
The main novelties are introduced:
o Introduction of the concept of economic activity, in particular the lease of real estate: It is understood that economic activity exists only when for ordination is used, at least one person employed with contract and full-time.
or New Corporation Tax payers: Civil societies that have commercial form and paid tribute to the approval of this Act as taxpayers Income Tax for Individuals through income allocation scheme. A transitional regime is established.
or modifications that affect the tax base:
o amortization tables are simplified.
or Accelerated depreciation: holds for elements linked to the R + D + I and a new course of freedom Accelerated depreciation of new fixed assets whose unit value does not exceed 300 euros is incorporated, to the limit of 25,000 € per year.
or the non-deductibility of any related impairment to other types of assets is established, including fixed income securities, with only deductible impairments of inventories and receivables and receivables.
or deductible expenses:
or financial instruments representing interests in the capital or equity accounted entities that are considered financial liabilities (non-voting shares / redeemable shares): The fiscal rule attributed to these instruments the tax treatment applicable to any equity or equity of entities, regardless of what accounting available.
Limitation or customer care expenses: Expenses for care with clients or suppliers be deductible, and thus having no consideration of donation, with a limit of 1 percent of net revenues of the entity.
or remuneration of directors.
No donation will be considered remuneration or benefit managers by performing different to those for office, regardless of trade or employment that is attributed to its relationship with the entity functions.
or limitation on the deductibility of interest expense.
The non-deductibility of those financial expenses generated within a trade group for the acquisition of other group entities of shares in the capital or owned by other group entities funds is maintained unless the contributor proves the existence of grounds valid commercial in support of these operations. The deductibility of net interest expense is kept to a limit of 30 100 Operating profit, being deductible in any case not exceeding the amount of 1 million euros.
or Related Transactions: In the field of related party transactions Law introduces the following new features:
or obligations of documentation: its content for entities or groups of entities whose net turnover is less than 45 million euros, and is not necessary in connection with certain transactions is simplified.
or Perimeter link: link perimeter is restricted in cases of linkage in the field of socio-society relationship, which is set at 25 percent share (before 5 100 or 1 100 for listed companies).
The assumption linking done considering that there is linkage between two entities when one exercises the power of decision over another is recovered.
or assessment methodology operations: the hierarchy of methods contained in the previous regulation to determine the market value of related party transactions is eliminated, admitting additionally other alternative valuation methods and techniques, while respecting the length principle.
or operations professional societies Rating: specific valuation rules for the operations of the partners with professional societies, adjusted to economic reality are introduced.
or modification of the penalty system: a less onerous system is established, and the tightness of the assessment made pursuant to this specific regulation of transactions related to the assessment could be done in other areas, as might be the case of the customs value .
tax losses or compensation: a quantitative limitation is introduced in 60 percent of the tax base prior to his compensation, and admitting, in any case, a minimum of 1 million euros. This quantitative restriction shall not apply in the amount of income corresponding to remove or expect following an agreement with creditors of the taxpayer. This, allowing the applicability of such carryforwards in future without time limit. Additionally, in order to avoid acquiring inactive or quasi-dormant entities with tax losses, measures that prevent their use, focusing on the fight against tax fraud is established.
or double taxation. A system of general exemption for significant shareholdings is incorporated, applicable to both domestic and international, in this second area eliminating the requirement for the realization of economic activity, although a requirement of minimum taxation is set 10 is incorporated percent nominal rate.
or Tax rates: the general tax rate, which rose from 30 to 25% by 2016. In 2015 it will be 28% is reduced. The rate of 20% for small companies (ERD) is deleted.
or tax incentives:
o Elimination of certain tax incentives. the deduction for environmental investment, reinvestment of extraordinary profits and reinvestment of profits.
or reserve capitalization: We introduce a reduction in the tax base of 10% of the increase in equity, which is intended to constitute a restricted reserve without any investment requirement of this reserve is established in some form Specifically active.
or deduction for R & D + i: is maintained, the deduction for research, development and technological innovation, although with lower percentages of deduction. The percentages remain deduction for entities to allocate more than 10% of net turnover for this type of expenditure.
or deductions for job creation: the deduction is maintained in the above terms, including the share of workers with disabilities.
or Deduction for investment in film productions: the percentage of deduction is increased investments in film production and audiovisual series to 20% for the first million euros. If production exceeds this amount, the excess will have a deduction of 18 percent. The amount of the deduction may not exceed 3 million.
or a deduction of 15% of the costs incurred in Spanish territory, in the case of large international productions is established. The amount of this deduction can not exceed 2.5 million.
or special regimes:
or Tax consolidation: In this respect it stands
o Regarding the configuration of the tax group requires that the majority of the voting rights of the entities included in the consolidation perimeter is held and allowed the other hand, the inclusion in the tax group indirectly investee through others that were not part of the tax group, such as the case of non-resident entities in Spanish territory.
o Integration of a tax group to another does not involve the effects of extinction of that, prevailing economic character of these operations, so that taxation remain neutral in restructuring operations involving groups of fiscal consolidation.
or restructuring operations Regime: This special scheme has the following new features:
o This system is configured specifically as the general rules for restructuring operations, disappearing option for implementation, and establishing a general obligation to notify the tax authority for conducting operations apply it.
or disappears tax treatment of goodwill fusion immediate consequence of the application of the exemption on the transfer of shares of domestic origin.
or subrogation of the purchaser in the tax losses generated by an industry organization is expressly stated, when it is being transferred by another entity, so that the tax bases accompany the activity that generated them, regardless is the legal holder thereof.
or the tax authorities the possibility of determining the partial derogation regime and demand adjustments which could be made solely on the scope of the tax advantage obtained in this type of operation is expressly attributed.
Regime or small companies: Key developments regarding this scheme applicable to entities with business turnover of less than 10 million euros are:
or not be applicable tax incentives for this regime to entities having as main activity the management of a property or real estate in the terms provided in Article 4.Ocho.Dos a) of the Heritage Act (That during more than 90 days of the fiscal year more than half of their assets are comprised of securities, or more than half of the asset is not subject to economic activities).
or scale of taxation (30/25%) is eliminated by maintaining, as single rate, 25%.
or Reserve leveling tax bases: Book allowing reduction of the tax base until 10 100 the amount, allowing minorar taxation of a given tax period in respect of tax losses that will generate in the 5 following years, anticipating in time the application of future tax losses. The amount of the reduction shall not exceed the annual amount of 1 million euros. Not generated tax losses in that period, deferral occurs during five years of the taxation of reserves constituted.
TIPS TO OPTIMIZE THE TAX REFORM IN THE FIELD OF INCOME TAX BEFORE 01/01/15
The main novelties are introduced and to be taken into account to optimize the tax reform in the area of income tax before January 1, 2015 are as follows.
TRANSFERS WITHIN THE GROUP
Objective: To eliminate the taxable income from those transmissions elements of non-current assets in the scope of the group, though, only if your sign is negative and subject to all the provisions relating to related party transactions. Everyone knows that this provision complements the effectiveness of which will be discussed below (impairment of non-current asset items). A similar rule was already introduced with effect from 2013 by Law 16/2013 regarding the shares themselves, unless trading funds.
This fiscal constraint has no effect on the acquirer A, which record the asset acquired in accordance with the provisions of the PGC. The price at which sells the Sdad. B, and the result obtained thereby, have no significance as regards the application of the extra-accounting setting.
In general, the elements of non-current assets must be removed from the balance sheet when no longer expect to get any economic performance thereof.
Therefore, it appears that will be fiscally more efficient to carry out such transmissions generating losses in 2014 following the entry into force of the new Law on Corporate Income Tax (LIS), as this will avoid the positive-balance sheet adjustment in the amount of loss.
IMPAIRMENT OF NON-CURRENT ASSETS
Objective: in line with what already introduced by Law 16/2013 in relation to holdings in equity, it is intended that the tax base is not affected by the impairment of non-current asset items that do not correspond to systematic amortization, regardless of how difficult that test the same (non-existent in fixed income securities traded). Consequently, only be deductible impairment of receivables and inventories.
Conclusion: it seems that companies should devote special attention to quantifying the deterioration of its assets noncurrent before the entry into force of the new LIS, since the deterioration that these items may experience in the future and not will be deductible accounting error ¿s / NRV PGC 22nd position in reserves => ?, deductible expense reimbursement revenue to reformulate undue financial statements ?.
Reminder: the registration of impairment is an accounting obligation, based both on an accrual basis as in prudence, which according to the doctrine of the DGT, can have significant tax implications, since the corresponding impairment at prescribed, regardless of their accounting periods, would not recover tax or during transmission element, but its deductibility could be lost forever.
WAIVER AND DIVIDEND INCOME FOR TRANSMISSION OF SHARES AND UNITS
The main changes to the current system to mitigate double taxation are:
• Exemption of all income earned as a result of the transfer of a significant stake in another resident entity, ie not only by the amount of retained earnings during the holding period, but also by any unrealized gains and possible goodwill.
• Elimination of the deduction of 50% of double taxation on dividends from investments are not significant.
• Introduction of the requirement of minimum tax of 10% for non-resident investee (OK. If Double Taxation).
Objective: equalization of treatment irrespective of the place of residence of the investee, and facilitate the tax treatment of goodwill to eliminate taxation by it. Legal safeguards in order to avoid a desimposición or abuse of the rule are regulated.
The right to deduct alternately preserved to avoid double taxation, introducing the advantage that the portion of the tax paid abroad (retention) than deductible share will be in the tax base, provided that corresponds to the carry on business abroad.
Conclusion: It is advisable to wait until the entry into force of the new LIS to proceed with the transfer of significant shareholdings in resident entities whose positive income exceeds the proportionate share of the profits and not distributed during the holding period (unrealized gains and / or goodwill), except in the case of holding companies. However, should anticipate the receipt of dividends (better in December) derived from lower stakes than 5%.
SUPPRESSION OF CERTAIN DEDUCTIONS
Without prejudice to any deductions that have been and will be introduced in order to fiscally support an event of special interest (Copa América de Vela, Compostela Holy Year, etc.), will only be in effect the following three deductions:
• Tax credit for research and development and technological innovation, is regulated in virtually identical terms to current, except to be reduced deduction based on the total amount of grants received (currently 65%).
• Allowance film, visual and performing arts and music sector, both the objective and subjective scope as the economics of this deduction improved quite substantially.
• Deduction for job creation, is regulated in the same terms in two categories (certain contracts indefinitely introduced by the labor reform of 2012 and increased workforce with higher disability of 33%).
Perhaps most significantly, in terms of volume of undertakings concerned, is the elimination of the deduction for reinvestment of extraordinary income as well as the very recent investment deduction of benefits (only organizations Companies of Reduced Dimension (ERD)). With this new law, the extraordinary benefits have already taken all possible tax treatments:
• Exemption for reinvestment until 31/12/95.
• Deferral for reinvestment until 31/12/01.
• Taxation reduced reinvestment until 12/31/14.
• Ordinary Taxation from 01/01/15.
An amendment adopted yet provides a deduction on the full amount in order to compensate those harmed by limiting the deductibility of depreciation and those who benefited from the last revaluation.
Objective: To approach the effective tax rate (net tax / tax base) to the nominal rate (25%).
Conclusion: it seems appropriate to anticipate the transmission of property, plant and equipment, intangible assets and investment properties with unrealized gains before the entry into force of the new LIS, where feasible reinvestment, as the currently existing deduction of 12% would place the taxation effective capital gain in 18% (13% for (ERD)) plus the use of the restatement for real estate, which disappears in the new LIS. The DT 24th regulates the transitional arrangements for this deduction from 2015. As for the recent investment deduction benefits, neutrality in regulating its transitional regime drives not adopt any specific behavior in this regard, as it remains the right to this deduction even when investment and other requirements take place from 01.01.15.
TAX RATE REDUCTION
The tax rate is substantially simplified as will become 25% for all companies, regardless of their size (28% in 2015 for non-ERD and BI> 300,000 ERD). Micro taxed in 2015 at the rate of 25% only.
Conclusion: The reduction of the tax rate makes it advisable to postpone obtaining income until 2015 or 2016, either by the mere postponement of the transaction triggering them or by using the cash basis for transactions as permitted the standard (deferred payment), except for micro, as these in 2014 can still enjoy the reduced rate of 20% for the first € 300.000.- its tax base.
Obviously, this reduction of the tax rate will necessarily involve many companies revising their assets and deferred tax liabilities (acct. 474 and 479), which also must be made in light of the new horizon for the compensation of the tax losses and the application of certain deductions.
We remain at your disposal,
Office of Tax and Accounting Consulting GAFIC, SLP
Consultancy and agency specializing in accounting and taxation Odoo / OpenERP