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Tax representation, important aspects

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Appointment of representative

In what cases is there an obligation to appoint a representative in Spain by a non-resident?

There is an obligation to appoint representative in four cases:

•When a permanent establishment is available in Spain.

• When certain expenditures may be deducted in order to determine the taxable amount subject to taxation in Spain.

• When an entity incorporated abroad is engaged in an economic activity in Spanish territory, and all or part of it is carried out, on a continuous or habitual basis, through facilities or workplaces of any kind, or acts there through an agent authorized to contract, on behalf of and on behalf of the entity.

• When required by the Tax Administration.

Representatives of taxpayers operating in Spain through permanet establishment and entities under income attribution incorporated abroad with “presence in Spanish territory” shall be jointly and severally liable for the income of the tax debts corresponding therein

SBO

RESPONSIBILITY OF REPRESENTATIVES

It is important to note that legal representatives are jointly and severally accountable for tax debts both for nonresident employers operating with permanent establishment, and in the case of entities in the allocation of foreign income with presence in Spanish territory

The Administration may require the recovery of the tax debt ingibly to the principal debtor or the jointly and severally liable debtor.

In the case of natural or legal persons not resident in our country operating in Spanish territory without permanent establishment, the joint responsibility for the income of the tax debts will be the payer of the income.

TYPES OF TAX REPRESENTATION

There are two types of tax representation:

• First, voluntary, for companies established within the European Union
• And legal enterprises, for companies not established in the EU.

Tax representation is mandatory where:

• The entrepreneur is not established in our country and has a permanent establishment.

• If the employer does not settle in Spain, he will be taxed and he wants to deduct it.

• It is an entity under the attribution of income incorporated abroad with a presence in Spanish territory.

• Companies that carry out an activity in Spanish territory related to:

  1. Service
  2. In addition, technical assistance
  3. Also installation costs
  4. Finally, assembly derived from engineering contracts.

BREACH

Failure to comply with this appointment, in casese where it is mandatory, may result in a fine of two thousand euros.

LAST NEWS ABOUT TAX REPRESENTATIVES IN SPAIN

Brussels has sent an ultimatum to the Spanish authorities to abolish within two months the obligation imposed on non- taxpayers to appoint a tax representative in certain cases.
Otherwise, the case will be brought before the CJEU, the Community legislation is being contravinced

 

BEING ABOLISHED OR NOT BEING ABOLISHED YOU NEED A REPRESENTATIVE OF YOUR COMPANY IN SPAIN IN ORDER TO DEFEND YOUR INTEREST BEFORE THE SPANISH TAX AUTHORITIES.

SPANISHBRANCHOFFICE HAVE BEEN DEFENDING
THE INTERESTS OF EUROPEAN COMPANIES BEFORE THE SPANISH TAX AUTHORITIES FOR MORE THAN
FIFTEEN YEARS

 

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