To reduce your costs and optimise the accounting management of you company, it is essential to follow several rules that will consistently save you money on various taxes.
First, consider charging all of your services together and claiming and then keeping the invoices for each one of your expenses. This documentation is required in order to deduct VAT.
Then, you should know that all expenses that are related to your business activity are deductible. The accounting books must be maintained in order to know the source and date of each invoice, as well as the reason for payment and contact details of the client or supplier. These are the kind of details that will allow you to prove your expenses at the time of declaration.
Finally, it would be common sense to choose which fee to reduce. The border is sometimes fine between professional and personal fees and it is not uncommon that some professionals can be tempted to exaggerate some of their spending. Remember to stay reasonable and transparent at all costs.
Investment makes up part of deductible business costs in Spain. Each smaller business that invests its business earnings in physical goods or property will benefit from tax deductions of 5% to 10%. Investments should be made on the date at which the assets are made available from the beginning of the tax period for the profits subject to taxation and for the following two years. Acquisition of assets that are subject to investment should be used by the company for a minimum period of five years. The deduction will still be valid as long as the acquisitions are replaced during said period.
It is possible to deduct fees of double taxation if the company’s profits are first taxable in terms of corporate income tax as well as a second time by the income tax leader, whether by receipt of dividends or in the form of participation. This reduction is made through a correction system of double taxation which is based on a decrease in the tax rate. Generally, the reduction is 50% of the imposed rate of dividends received by the entrepreneur. Deductible business fees in Spain are numerous and vary from year to year. Please see the official website of the Spanish treasury or go to a professional accounting firm for more information.