IAE: Am I obliged to pay? How to calculate the Tax on Economic Activities
Posted: Sun Dec 15, 2024 9:22 am
The management of the IAE is shared between different administrations
Most SMEs and self-employed workers are exempt from IAE
The IAE (Tax on Economic Activities) is defined by the law that regulates it as “a direct tax of a real nature, the taxable event of which is constituted by the mere exercise, in national territory, of business, professional or artistic activities, whether or not they are exercised in a specific location and whether or not they are specified in the tax rates”.
In practical terms, however, it does not usually involve large payments, since many taxpayers are exempt . Let's see how the IAE (Tax on Economic Activities) works .
Start of marked textShare! Discover the key points of the IAE: who is obliged to pay it, how much you have to pay and what forms you have to present.End of marked text
The role of local entities
The participation of local entities in the IAE gives this tax special characteristics. It should be noted that taxes must be configured in their essential aspects through a law. However, local entities can only approve regulations.
The solution to this situation is to regulate its essential aspects in Royal Legislative Decree 2/2004, of March 5, which approves the revised text of the Law Regulating Local Finances . In addition, a state legislative decree regulates the tax rate . However, in each municipality, tax ordinances may establish certain regulatory development, in addition to that established in the tax regulations themselves , which are state-level.
In particular, the main rules that each municipality can introduce are:
Certain bonuses are discretionary , meaning that nursing homes email list they are only applied if the municipal tax ordinance includes them. However, they are included in a catalogue of possible bonuses reflected in article 88 of the consolidated text of the Law Regulating Local Finance.
The situation coefficient that can be applied depending on the category of the streets.
The distribution of the management of the IAE
Furthermore, another unique feature of this tax is that its management and other procedures are partly shared as follows:
The formation of the tax register, the classification of economic activities, the designation of the corresponding quotas and, in general, the census management of the tax will be carried out by the State Tax Administration .
Notification of these acts may be carried out by the town councils or by the State Administration, together with the notification of the liquidations leading to the determination of tax debts.
Matters related to municipal quotas can be delegated to city councils, provincial councils, island councils or island councils…
The town councils are responsible for certain functions related to the liquidation, collection and review of management acts.
Most SMEs and self-employed workers are exempt from IAE
The IAE (Tax on Economic Activities) is defined by the law that regulates it as “a direct tax of a real nature, the taxable event of which is constituted by the mere exercise, in national territory, of business, professional or artistic activities, whether or not they are exercised in a specific location and whether or not they are specified in the tax rates”.
In practical terms, however, it does not usually involve large payments, since many taxpayers are exempt . Let's see how the IAE (Tax on Economic Activities) works .
Start of marked textShare! Discover the key points of the IAE: who is obliged to pay it, how much you have to pay and what forms you have to present.End of marked text
The role of local entities
The participation of local entities in the IAE gives this tax special characteristics. It should be noted that taxes must be configured in their essential aspects through a law. However, local entities can only approve regulations.
The solution to this situation is to regulate its essential aspects in Royal Legislative Decree 2/2004, of March 5, which approves the revised text of the Law Regulating Local Finances . In addition, a state legislative decree regulates the tax rate . However, in each municipality, tax ordinances may establish certain regulatory development, in addition to that established in the tax regulations themselves , which are state-level.
In particular, the main rules that each municipality can introduce are:
Certain bonuses are discretionary , meaning that nursing homes email list they are only applied if the municipal tax ordinance includes them. However, they are included in a catalogue of possible bonuses reflected in article 88 of the consolidated text of the Law Regulating Local Finance.
The situation coefficient that can be applied depending on the category of the streets.
The distribution of the management of the IAE
Furthermore, another unique feature of this tax is that its management and other procedures are partly shared as follows:
The formation of the tax register, the classification of economic activities, the designation of the corresponding quotas and, in general, the census management of the tax will be carried out by the State Tax Administration .
Notification of these acts may be carried out by the town councils or by the State Administration, together with the notification of the liquidations leading to the determination of tax debts.
Matters related to municipal quotas can be delegated to city councils, provincial councils, island councils or island councils…
The town councils are responsible for certain functions related to the liquidation, collection and review of management acts.