Gutiérrez Pujadas & Partners offers services of Accounting and Tax Advice at national and international level to particulars and companies, residents and non-residents in Barcelona and Spain.
In addition of our main office in Barcelona, we have local collaborating offices in: England, Germany, Italy, Holland, Eastern Europe, Hong Kong, Australia and the United States, among others. This allows us to provide assistance in all these territories.
As tax lawyers, we provide support to individuals and legal entities with regard to compliance with tax and accounting obligations, as well as in tasks related to the management and administration of the activity to which the organization in question is dedicated.
Having tax and accounting advice is essential to carry out a correct development of the economic activity from its beginnings.
Aspects such as tax declarations, general accounting or personnel payroll management will always be less complex to solve if it is with the help and presence of a tax advisor. And, in addition, we will avoid possible tax, criminal or civil consequences.
Hiring our services as Tax Advisors in Barcelona and Spain, has benefits such as:
For more than 30 years, at Gutiérrez Pujadas & Partners, our main objective has been, and still is, the calm and well-being of our clients. We monitor and analyze the economic situation of companies with the objective of optimizing their management and outlining future economic strategies, solving possible tax and accounting problems in an efficient way.
We provide our services at a national level in Barcelona and Spain and internationally.
When choosing one legal form or another, the following aspects should be taken into account:
• The degree of liability that the entrepreneur will assume. A limited or public limited company limits the liability of the partners to their contribution, whereas a sole proprietor is liable for debts with all his or her assets.
• Accounting and registration obligations. A sole proprietor is only obliged to keep a register of expenses and income, as well as a book of invoices issued and received. A company, on the other hand, has more accounting and registration obligations (see answer to which obligations).
• Cost of incorporation. A commercial company entails a greater number of initial outlays (notary, contribution of the minimum incorporation capital, etc.).
• Volume of activity. The profit obtained from the activity is taxed for personal income tax purposes in the case of an individual entrepreneur, and for corporate income tax purposes in the case of a trading company. It is important to remember that the marginal rates for personal income tax can be much higher than the flat rate of 25% (or 15% for start-ups) for corporation tax.
The obligations of each taxpayer depend on each particular circumstance, but broadly speaking, some of the tax obligations that entrepreneurs must assume are:
• Quarterly: Form 111 for withholdings on income from work and economic activities, Form 115 for withholdings from leases and Form 303 for Value Added Tax.
• Annually: Form 200, corporate income tax; Form 347, information return for transactions carried out with third parties that exceed 3,005.06 euros.
Companies are obliged to keep
• The journal. In which the amount of all transactions carried out in the course of business activity is recorded chronologically.
• The inventory ledger and annual accounts: balance sheet, profit and loss account, statements of changes in equity, cash flow statements and the annual report.
In addition to accounting books, companies are obliged to keep and legalise: the book of minutes, the book of registered shares in public limited companies and limited partnerships by shares, and the register of partners in limited liability companies.
In Spain, there is a Form 720, which is for information purposes. Individuals and legal entities resident in Spanish territory are obliged to file it whenever they have more than €50,000 in accounts in credit institutions, securities, funds, insurance, income and property and rights over real estate.
This information return must be filed between 1 and 31 March of the subsequent year to which it refers. Throughout these years there has been much controversy surrounding this model, finally in January 2022 the Court of Justice of the EU has declared that it is considered a restriction on the free movement of capital, to which the Minister of Finance has responded that the model will be modified, but will continue to be in force.
In order to set up a company in Spain, it is essential to open a bank account in the name of the company and deposit the amount agreed between the partners. The most common legal form is the limited company, which requires a minimum capital of €3,000.
In the case of limited companies, the first step in setting up a company, and prior to opening the bank account, is to apply for a Negative Certificate of Company Name from the Companies Registry. This certificate must be submitted to the financial institution where the bank account is to be opened. Once the certificate has been provided, the bank will open a Company in Incorporation account, where the aforementioned share capital must be deposited.
Once the deposit has been made, the bank will issue the certificate of deposit of the share capital, which must be presented to the Notary, in order to prepare the deeds of incorporation of the company. Once the deeds have been signed and approved, they must be registered in the Mercantile Register and the company must be registered for tax purposes (using form 036).
Finally, in order to be able to start operating with the bank account, the tax registration and the deeds certified by the Commercial Registry must be submitted to the bank.
According to Article 30 of the Commercial Code, entrepreneurs must keep the books, correspondence, documentation and supporting documents relating to their business for six years from the last entry made.
However, this period does not coincide with the statute of limitations for tax purposes, regulated in articles 66, 67 and 68 of the General Tax Law, which is 4 years from the end of the voluntary period for each tax. However, this limitation period will be 10 years in cases of verification of tax credits such as the application of Negative Taxable Bases.