Rule to apply with respect to the exemption from the Business Activities Tax. And as the month of December is approaching, this month is when the registration must be analyzed and carried out, for ceasing to enjoy exemption. Or the cancellation, for passing to enjoy exemption from the Business Activities Tax (IAE in Spanish).
Exemption from the Business Activities Tax
On July 9, 2021, Law 11/2021 introduced an important novelty in the Business Activities Tax (IAE). Specifically, with respect to the limit of 1 million euros of Net Turnover Amount (INCN) that determines the exemption in the IAE. The rule for the calculation of the net amount of the turnover must be applied independently of the obligation of accounting consolidation.
It is necessary to remember that the RDL 2/2004, of March 5, 2004, regulating the Local Treasuries establishes, in its article 82 some exemptions. Among others those of the taxpayers of the Corporate Tax that have a net amount of the turnover lower than 1.000.000 €. And when the entity is part of a group of companies (of article 42 of the Code of Commerce). The INCN will refer to the group of entities belonging to such group.
Until the regulatory reform included in Law 11/2021, for there to be a “group of companies” for the purpose of determining the INCN necessary for the IAE exemption, it was necessary for the entities to be subject to the legal obligation to formulate their annual accounts on a consolidated basis. In other words, they had to be a “consolidated group”. If the companies did not act as a consolidated group, and there is no evidence that they are obliged to do so, the INCN to be assessed was that of the company concerned. Not that of all the entities belonging to the group.
However, with the entry into force of Law 11/2021, the wording of Article 82.1.c) changes. The purpose of the reform is to improve the anti-avoidance measures provided for and to avoid that the rule of accumulation of NTIs cannot be applied to the members of a commercial group.
Conclusion
Thus, the new wording of Article 82.1.c), applicable as from July 11th, 2021, establishes that the rule for the calculation of the INCN must be applied regardless of the accounting consolidation obligation.
Those entities that, being part of a group of companies, were exempt from the IAE for not having the obligation of accounting consolidation, must analyze if they comply with the limits. And proceed to the registration due to cessation of exemption of the obligation in IAE. During the month of December, taking into account the INCN of the group.
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