Tax and accounting closure planning 2020

Our experts in accounting and tax planning will advise you, among other things, on:

• Possibilities of reducing the amount to be paid in the Income Tax 2020, especially thinking about the self-employed: Deductible expenses; anticipating expected expenses, contribution to pension plans; compensation of capital gains and interest with losses, past and future…etc.
• Control of the turnover figure and analysis of its implications for both the method of calculating net income from economic activity for personal income tax; for corporation tax, due to the possibility of applying the special regime for small companies; and for VAT, for the purposes of applying the SII (by its acronym in Spanish, Immediate Provision of Information, that it is the system of management of the VAT).
• Recommendations in view of possible reductions in Corporate Tax: review of the limits for offsetting negative tax bases (BINS), tax deductions, capitalization and leveling reserves, etc
• Special accounting review of elements affected by the extraordinary situation of the Covid -19: Accounting recognition as a subsidy of the exoneration of Social Security contributions by workers included in ERTES, in the face of significant amounts, or lower social expenses, in other cases; Review of the situation of equity at the end of the year and alternatives to solve possible situations of negative equity.
• Review of the correct application of the criterion of remuneration to the professional partner in order to comply with the “market value” requirement.
• Verification of compliance with the commercial requirements to consider the administrator’s remuneration as deductible.
• Evaluation of the fulfilment of the requirements of the Family Business at 3st of December with a view to a future business succession enjoying the tax benefits in the Wealth Tax and in the Inheritance and Donations Tax.
• Effects on Tax Residence, due to the “forced” stay in Spain due to the restrictions on travel due to the Covid-19 crisis, in accordance with the important criteria established by the Directorate General for Taxation (V19883-20).
• Tax planning in the face of a possible increase in inheritance and gift tax, as well as income tax on the profit generated by the donor. Planning before the possible restitution of the Patrimony Tax.