Registration & Duties management
We manage legal obligations, accounting, tax returns, taxes, account management, legal services, for the peace of mind of your business.
Doing business in Spain (Madrid and Barcelona) is great, although navigating through the legislative framework may be complicated. At Henry Towers we want to be your partner in Spain, so you have no worries with any legal or tax requirement. We will be acting on your behalf and taking all this burden out of your way, so you can focus on what really matters: your business.
This is a very unique service, where we will ensure you are fully compliant and up to date with your obligations towards Spanish legislation and tax authorities, with independence if the related services such accounting is outsourced with Henry Towers. We aim to be your partner in Spain, and make sure that running your business is as easy as one, two and three.
Information gathering and context understanding
Our teams will be working with you and your teams to define the calendar of obligations and duties based on your business activity and future plans within your business. This calendar does not need to be absolute, as we understand your business is alive and will change. As far as you keep us informed upfront your operations we will be able to anticipate any obligation, inform you of the potential impact and deliver the execution, to keep you safe and compliant.
Execution process about duties management
Our experts will be working and preparing all the paperwork with your teams (if required) for your validation prior our submission to the competent authority.
Report of registration and duties management
You will be notified of the processes we are working on as well as requested for validation of the information we will submit on your behalf. Our team will always provide you with an estimation of the costs and the taxes required by the statutory body if any.
As the offered service is a whole range of many services, the applicable legislation is extremely vast. We will summarize in these section the most relevant legislation.
FORMAL OBLIGATIONS OF COMPANIES
Taxpayers required to file the corporate income tax return shall keep the accountancy in accordance with the commercial code and other applicable legislation.
The obligatory books that are required to taxpayers are:
- Inventory book and financial statements, which will be opened with the detailed initial balance of the company, and transcribed at least quarterly with sums and balances, as well as the inventory at the Year-end and the financial statements. The financial statements comprise the following figures:
- Balance sheet.
- Profit and loss account.
- Notes to the financial statements.
- The journal will record all the operations relating to the activity of the business daily. However, an annotation of the totals of the operations for periods not exceeding one month is allowed, if its detail is reflected in others books.
- Book of minutes containing, at least, all the resolutions adopted by the shareholders at the Annual General or Special General Meetings and by the other collective bodies of the company.
- Registry book of the shares, in the HS and in the limited shares.
- Registry book of the shareholders of an SL.
- Registry book of contracts between the company and its shareholder for the companies that only have one shareholder (Sociedades unipersonales).
Simplified accounting system for all accounting subjects (individuals and companies) when during two consecutive tax years meet at least two of the following circumstances: - The total of the asset does not exceed one million euros. - Total annual revenue does not exceed two million euros. - The average number of employees during the reporting period does not exceed to ten.
The deposit period for the annual accounts is established in the article 279 of the Royal Legislative Decree 1/2010, of July 2nd, approving the consolidated text of the Corporate Enterprises Act:
“within the following month since the approval of the financial statements, the directors of the company shall submit for filing in the Commercial Registry the duly signed certification of the shareholders meetings resolutions to approve the mentioned financial statements and the application of the result in addition to, where applicable, the consolidated financial statements, to which a copy of each shall be attached. The directors shall also submit the management report, when mandatory, and the auditor’s report, when the company is obliged to perform audit activities by law or it has agreed to do so at the request of the minority or on a voluntary basis, provided that the appointment of the auditor has been recorded in the Companies Register”.
Explicitly, the Commercial Registry regulation establishes the obligation to submit the following documents:
- Application form duly signed by the representative.
- Certificate of approval of the financial statements including the distribution and application of the result of the tax year and stablishing if the financial statements have been object of audit.
- A copy of the financial statements duly signed by the directors.
- A copy of the management report signed by the directors.
- A copy of the audit report, if the company has the obligation of accounting verification.
- A certificate of the own shares if any.
Once the accounts have been deposited, the Commercial Registry will qualify the financial statements within fifteen days approving under their responsibility if the filed documents are those required by law, if they are duly approved and if the signatures are the mandatory ones.
The Corporate Income tax should contain the following information:
- The identifying data of the company.
- The economic data that determines the taxable base.
- The resulting tax debt or tax credit.
The Corporate Income tax will be filed submitting the Form 200. However, for groups of companies, it will be also required to file the Form 220. Both tax returns need to be filed online by telematics filing.
The deadline to file the Corporate Income tax is within 25 calendar days from the six months following the end of the tax period.
In case of a payable result or a reimbursement request, the amount will be debited or credited in the bank account of the company if requested. Otherwise, it will be delivered to the tax authorities.
The payments on account are an advance on the payable tax debt of the annual calculation:
- The deadlines to file the payments on account of the Corporate Income tax are during the 20 first natural days of April, October and December.
- The payments on account will be filed submitting the Form 202.
There are two different methods to calculate the payments on account:
- The payable payment on account is calculated applying 18% on the tax debt of the most recently corporate income tax filed form.
- For companies which net revenue exceeds 6 million euros the last 12 months, the payable payment on account is calculated applying a percentage of 5/7 of the tax rate to the tax base of the first three, nine or eleven months of the tax year. For taxpayers who apply the general tax rate of the Corporate Income tax (25%), the tax rate applied for the payments on account will be 17%. This method may be also applied for companies which net revenue does not reach the mentioned threshold if a communication is filed in February of the tax year by filing a Form 036.
- For companies which net revenue exceeds 10 million euros the last 12 months, there is a minimum tax debt for the payment on account.
Would I have a calendar of all my obligations, despite the service is provided by Henry Towers?
Absolutely, we will develop such calendar at the beginning of our service, and keep it updated all year round including your business moves. We grant access to this critical information to you, although you are not requested to fulfill any of the scheduled duties.
Do I need to pay a fee per each obligation fulfilled?
No, our simplified model will establish a monthly fee in agreement with you so you only need to worry about the taxes and imports that your business might need to satisfy to the Spanish statutory bodies. These will be calculated and forecasted to you in advance by our team of experts.
What are the obligations and duties in Spain?
Unfortunately there are many and they might vary depending of your business activity, some common ones are:
- Declaraciones de IVA - VAT quarterly declaration – Form 303 (quarterly) and Form 390 annually.
- Impuesto de sociedades - Company taxes – Form 190
- Declaración anual de operaciones con terceros – 3rd party business declaration – Form 347
- Impuesto de actividades económicas – Business activity tax – Form 840
What happens if I am late or I don’t fulfill an obligation?
Certainly this won’t happen to you with our service, but in case this might occur to you. You will be required to pay a sanction, plus fulfill the obligations with interests. At Henry Towers we can help you if you are in this situation to mediate with the statutory body and try to reduce, if not eliminate the sanction and the interest of your obligation.
This is a very unique service, where we will ensure you are fully compliant and up to date with your obligations towards Spanish legislation and tax authorities
Gerente de Contabilidad y Nóminas at Henry Towers