Process the IAE Exemption Certificate, it is necessary and having it on hand much more, it is a document that is highly requested by the owners of companies in the nation. And, it is used when making the payment of taxes before the competent authorities.
Do you own a business or plan to start a new venture and want to know how to obtain this IAE Exemption Certificate? In this article we will tell you and explain everything about this certificate.
Keep reading! This article is for you.
How to Obtain the IAE Exemption Certificate?
This in one of the tax certificates that is charged in the same way throughout the country. This has many reasons and the main one is that the Tax on Economic Activities is a fixed rate regardless of the total billing.
Companies must pay the same amount regardless of whether their income is higher or just above the minimum. Because of this, it is important to obtain the IAE Exemption Certificate , because it is the way in which it will not be necessary to pay it. In this way, below, we will tell you how to obtain this certificate.
- You must enter your preferred web browser and then enter the web page.
- Then, you must go to the section «Process online» this will require identification and electronic signature.
On-site at the registers
- Citizen Service Offices Linea Madrid, by appointment.
- Comprehensive Taxpayer Assistance Offices, by appointment.
- Remaining records of the Madrid City Council, by appointment.
- Records of the General State Administration.
- Registries of the Autonomous Communities.
- Through the other forms provided for in article 16.4 of Law 39/2015 of October 1, on the Common Administrative Procedure of Public Administrations.
What is the IAE Exemption Certificate for?
The IAE is a mandatory tax that any natural or legal person who carries out an economic activity on their own account in national territory must face. If you carry out a business activity and obtain income that is not from an employee’s work, you must be registered with the IAE.
The IAE Exemption Certificate It serves to certify having made the entry of an IAE receipt corresponding to a specific year, in addition, it certifies that the taxpayer is registered for the activity and reference address from a specific date, continuing to register today.
Tax on Economic Activities (IAE)
The Economic Activities Tax is a tax that is applied to both self-employed persons and companies, for the fact of carrying out a business, professional or artistic activity in Spanish territory. Depending on the type of activity, the tax collection can be local, provincial or state level.
Each city council determines in the fiscal ordinances the payment dates. At the end of the voluntary payment period, the debt will be enforced in an executive way with the corresponding surcharge and interest for late payment.
This tax must be paid in the collaborating entities indicated in the payment letter and according to the chosen modality. These modalities can be:
- By Internet: through a charge to the account or to the debit or credit card.
- In person: at the branches of financial entities.
- By electronic teller machine: this is as long as the collaborating entity provides this service.
- By telephone banking: this, in case the collaborating entity provides this service.
This Tax on Economic Activities is regulated by:
- The Consolidated Text of the Regulatory Law of Local Finance.
- Law 51/2002.
- The Royal Legislative Decree 1175/1990.
- The Royal Legislative Decree 1259/1991.
- The tax ordinances of the municipalities.
- Royal Decree 243/1995.
- Royal Decree 1065/2007.
- Order HAC / 85/2003.
- Order HAC / 2572/2003.
In the case of the self-employed, they are not obliged to pay this tax if they carry out an activity as individual entrepreneurs. However, if they associate with other freelancers and create, for example, a Community of Assets or a Civil Society, then there, if they would have to pay the IAE, as long as the people are natural. Nor will they have to pay the IAE, among others:
- The self-employed or companies during their first two years of activity.
- From the third year they will only be required if during the first year of activity the turnover was greater than one million euros.
- Public administrations and their autonomous bodies.
- Natural persons.
- Companies that pay Non-Resident Income Tax, with certain conditions.
- The managing entities of Social Security and Mutual Societies of Social Security.
There are a number of institutions that are immediately exempt from having to pay the IAE tax. In addition, of those organizations that currently invoice less than one million euros, there are other institutions exempt from IAE that work in Spain.
- In general, subjects who start economic activities in the national territory will not have to pay the IAE for the first two periods in which they work.
- All social prevention mutuals, as well as those entities that carry out the management work for the National Institute of Spanish Social Security.
- The Spanish Red Cross Foundation, as well as all its companies and subsidiaries, immediately have their IAE Exemption Certificate.
- All the ports of the nation are exempt from having to pay the tax on economic activities to the treasury.
- The foundations and associations that provide help or services to the mentally handicapped, the sensory handicapped or the physically handicapped.
Aspects to Consider about the IAE Exemption Certificate
The Economic Activities Tax is a direct tax of a real nature, whose taxable event is constituted by mere exercise, national territory, of business, professional or artistic activities, whether or not they are exercised in a specific place and whether or not they are specified in the tax rates.
The IAE must be paid annually by legal or natural persons that carry out a business, professional or artistic activity and that are not included in any of the exemptions established in article 82 of the Consolidated Text of the Local Tax Regulatory Law.
Generally speaking about the IAE Certificate of Exemption raises a lot of concerns. Next, some important aspects about this will be briefly explained to you. IAE Exemption Certificate.
- Natural persons should never request this type of certificate. The reason is that natural persons do not need to contribute the same as legal persons on the responsibility of the city council.
- NGOs are exempt from IAE because they generally do not bill any money.
- The request for this certificate must be made the last week before the close of the current fiscal year.
- In this way, you will ensure that at the beginning of the following year you do not have a late application and do not have some inconveniences.
- You must go personally to your town hall to find out if they deliver the certificate there today.
Being exempt from paying the IAE does not exempt the fact of having to carry out the «high census» in the tax, thanks to which it is communicated what type of economic activity is going to be carried out.
What is the IAE Exemption Certificate?
The IAE is a tax of the Spanish tax system. It is a tax that is levied on economic activity, whether professional, business or artistic, within the territory Spanish. It affects both natural persons (the self-employed) and legal persons (companies).
It is a direct tax because it is applied directly to the obtaining of income from the taxable person, that is, it is taxed on the obtaining or tendency of wealth by the self-employed person or the employer. They must carry out an activity that generates economic income.
The IAE Exemption Certificate It is one of the most useful documents for those people who do not have a large turnover in their current business, this certificate is intended to avoid the payment of taxes by specific businesses. That is, basically the operation of this certificate is to avoid charging.
The idea of this certificate is to verify that certain companies adequately pay tax taxes to the authorities of the Spanish nation. Almost always, these types of payments are destined to the maintenance and improvement of the basic services of the town hall where they operate.
However, there are companies that create jobs but cannot support themselves if this tax is applied to them, therefore, certain exemptions are given. Precisely, IAE Exemption Certificate is used so that people avoid having to pay for the IAE.
It is important to bear in mind that not all companies are destined to pay the IAE, in the same way there are others that do not even need this certificate. In general, these companies are those that invoice less than one million euros in each of the fiscal years.
So what are you waiting to get your IAE Exemption Certificate?
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