Thursday, 25 September 2008 00:00

Wealth tax disappears

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In this electoral year the government has abolished the tax on the wealth tax. This abolition takes effect from the 1st of January 2008. Therefore, in 2009 you will no longer have to submit this wealth tax. By applying this new measure, nearly one million taxpayers and 300,000 foreigners will save more than 1,800 million Euros; although this amount will supposedly be collected by the State via other means. It is the fulfilment of an electoral promise which shall favourably affect the sale of properties to foreigners, since this tax had caused many claims. In addition, according to the Tax…
Monday, 25 August 2008 00:00

New NIF in Spain

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The Tax identification number is a unique code, generally an alphanumeric code, which is used to unmistakably identify any person or company required to submit tax records. In Spain, this identification number is called NIF and it is used to monitor people and businesses and keep a registry for administrative and tax purposes. The spectacular increase of the tax bases in developed or developing countries during the last years of the XXth century and the implementation of new management tools that have the ability to treat and process big amounts of data, made the tax administration start assigning a number,…
China is the country with the largest population on the Earth: it is in the region of 1300 million inhabitants, which is equivalent to a third part of Asia’s population and a fifth of the world total. Nowadays the population’s growth is scarce: the fecundity rate is 1.8 children per woman. The main objective of this antinatalist policy has been accomplished, and it has been more moderate and permissive since 2002. Currently the growth rate of the Chinese population is 0.7%. The decrease in the birth number is due to the birth rate control during the last decades. The three…
The Canary Islands Investment Reserve (Reserva para Inversiones en Canarias -RIC-) essentially provides the possibility of reinvesting profits obtained by companies, be it physical people or legal entities, established in the Canaries. The RIC allows the reinvestment of up to 90% of the profits obtained by a company, subject to certain restrictions. Since its creation in July 1994, the RIC has brought with it some positive and negative results which can be summarized as follows: · It has produced an important economic development in the Canary Islands, it has promoted business expansion and development in the Canaries. · It has…
Company’s administrators carry out the daily management of the company and they represent it with third-person parties. On the other hand, the general assembly is a body formed by the shareholders and it is responsible for making most of the relevant agreements within the company: – the corporate organization, the modification of its bylaws, capital increases, dissolution, mergers, etc.– The administrators are appointed by the general assembly. This general assembly is the body expressing the corporate will and the rest of corporate bodies are subject to it for their appointment, action and revocation. The appointment must be registered at the…
Friday, 25 April 2008 00:00


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There is an increasing interest in the African continent and its business expectations. Starting a business in Africa is not easy, as you must know the risks and the market. A good way to operate there is to collaborate with local partners. These are some suggestions when starting to do business in Africa: 1. African people are keen on doing business face-to-face rather than using new technology. 2. Commitment. These African countries will note that there is a permanent commitment and not a quick and temporary business. 3. Patience. Results can be expected in two or three years. 4. Humility.…
Tuesday, 25 March 2008 00:00


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When a person dies and leaves some assets to her/his heirs, the heirs are usually required to pay an "Inheritance tax". On the other hand, when we receive a donation or gift exceeding a certain value, we are also obliged to give part of it to the Government by means of "Donation Tax". In practice, both taxes, which in principle are very different, are paid through the same tax, the "Tax on Inheritance and Donations". These two taxes are being managed by the Spanish autonomous communities, i.e., the Governments of the autonomous communities can decide about them. This tax must…
Monday, 25 February 2008 00:00


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E-Government is increasingly spreading. It has to do with transforming the traditional office, converting paper processes into electronic processes, in order to create a paper-free office. E-Government has been promoted by the onset of new information and communications technologies (ICT). The Spanish Treasury was a pioneer in establishing e-Government. The Governments of the European countries are increasingly forcing its citizens to do business with the public administration by means of these electronic channels. The electronic channel is a system authorized by the Treasury for submitting tax returns via the Internet. The goal of this system is to facilitate the submission…
Friday, 25 January 2008 00:00


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It is common that many older people do not have a sufficient income to cover their needs or they simply prefer to enjoy an income level higher than their actual income and they own a house of a certain value. Exchanging that house for money, while continuing to live in it, is called a reverse mortgage. Commonly known as a "lifetime mortgage" or "reverse mortgage", it is basically explained as the opposite transaction of what a "mortgage" is normally understood to be. That is to say if a mortgage is commonly understood as an "instalment purchase" of a house, this…
Wednesday, 26 December 2007 00:00


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Commercial activities and businesses have internationalized. AS an example, a businessman having his activities within the European Union may be doing business with a Japanese or American businessman. The problem arose because the companies from different countries were presenting their accounting statements differently. In order to sort this out, the international accounting standards (IAS) were created in order to ensure "consistency of presentation of items in the financial statements", regardless of the nationality of their readers or interpreters. Since 2000, the accounting standards are being harmonized at an international level, in general, and particularly, at in terms of the European…
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