The Tax on Economic Activities (IAE) is compulsory both for the self-employed and for companies that carry out activities on their own account.
The period for voluntary payment of the national and provincial quotas for the Tax on Economic Activities (IAE) for fiscal year 2018 will be extended from 17th September 2018 to 20th November 2018, both inclusive, according to the Resolution of the Collection Department of the State Tax Administration Agency, of 24 May of this year (BOE 08-06-2018).
The aforementioned resolution establishes that its collection must be carried out through the credit entities collaborating in the collection, with the income document that will be sent to the taxpayer for this purpose.
In the event that they have not received the payment document or it has been lost, they may make the payment by means of the duplicate issued by the corresponding Agency Delegation, upon request.
Although, as we have said, anyone who carries out an activity as a self-employed person is bound by this tax, the law also includes certain exceptions to this obligation and for this reason the following are exempt from paying the IAE:
- Natural persons.
- Self-employed persons and companies during their first two years of activity.
- From the third year onwards, they will be exempt if during the first year of activity the turnover did not exceed 1,000,000 euros.
- The educational establishments in all their grades financed entirely with public funds.
- Foundations and non-profit entities for economic exploitations declared exempt from Corporation Tax.
- Non-resident income tax payers when they operate in Spain through a permanent establishment and have a net turnover of less than 1,000,000 euros.
For any clarification or if you do not have this document, please contact our office.