Reminder modifications VAT and Withholding

MAJOR CHANGES VAT

The VAT increase effective from September 1, has the most significant changes include:

VAT 4% -> 4% (basic food, books and magazines, drugs …)

VAT 8% -> 10% (water, transport, food, medical supplies, museums, hotels)

VAT 18% -> 21% (basic services such as electricity, telephone, cars, snuff, cars, fashion, appliances …)

Sectors most affected up 8% to 21%:

Hairdressers, flowers and plants, gyms, dentists, Plastic surgery, culture (cinema, theater), funeral homes, pay TV.

DEDUCTIONS FOR PROFESSIONALS

Retention professionals, rising to 21% from 1 September 2012 until 31 December 2013.

– In the beginning of the tax period of activity and in the next two, and in the cases specified in the regulations, 9%.

question

What are the retention rates that apply to income from economic activities?

reply

The percentages are:
For professional activities:

Yields satisfied or paid from September 1, 2012:

– In general, 19%. However, this percentage rises to 21% from 1 September 2012 until 31 December 2013.

– In the beginning of the tax period of activity and in the next two, and in the cases specified in the regulations, 9%.

For agriculture or farming, 2%. Except in the case of livestock fattening pigs and poultry, which apply the 1%
For forestry, 2%.
When yields are consideration for an activity expressly determined in the regulations and whose net income is calculated by the method of objective assessment, 1%.

Gabinet d’Assessorament Fiscal I Comptable, GAFIC, S.L.P.
www.gafic.com