In December 2020 you must check to see whether your company is exempt from the Economic Activities Tax (referred to hereinafter as the IAE) in order to inform the tax authorities about this possible variation.
If the turnover declared in the Corporate Tax for the fiscal year 2019 was more than one million euros, your company will not be eligible for the I.A.E exemption for the next fiscal year 2021 and you must declare the registration in the tax on economic activities register.
However, companies that have been paying the IAE because their turnover was more than a million euros in the previous fiscal year but the turnover for 2019 was less than this amount, they must declare the removal from the tax on economic activities register because they are eligible for the exemption.
– If the tax period is less than the calendar year, the amount would be increased the following year.
– With regard to companies that are part of a consolidated group, the net amount of the turnover will be associated with all the companies of the group.
Declarations concerning registration or removal from the IAE register for this item must be presented to the corresponding Authorities (Tax Agency, SUMA or the Town/City Council) in December.
We would also like to remind you that regardless of the exemption for the net amount of the turnover, companies can benefit from not having to pay this tax in the first two tax periods if:
- They are starting the economic activity for the first time.
- They are already registered in the IAE, when they begin a new activity that is not associated with the activity carried out previously.