Tax, labor and administrative measures for the year 2000

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1. Improves the corporate income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. deductions for scientific research and technological innovation activities, to encourage technological development and the competitiveness of Spanish companies.
2. In personal income tax, it expands the deduction for investment in a main home to include adaptation works for people with disabilities, with an annual limit of 2,000,000 pesetas.
3. It sets the tax treatment of life insurance policies where the policyholder bears the investment risk (so-called unit linkedUnit linked A life insurance policy where the policyholder bears the investment risk: its value depends on how the underlying assets perform.), both in personal income tax and in corporate income tax.
4. It introduces in VAT the special regime for investment gold and repeals the retail trade special regime of proportional determination of tax bases, effective January 1, 2000.
5. It amends the fixed and discontinuous employment contract: sector-wide collective agreements may set working-hour limits above the general one when seasonal activity justifies it, and the requirements for these contracts of uncertain duration are made more flexible.
6. It establishes the employment promotion program for 2000, with social security rebates for permanent hiring of young people, long-term unemployed, people over 45, women and people in social exclusion, including a new program for the latter group.
7. It shortens from five to four years the deadline for Social Security to claim back benefits wrongly paid, and banana handling, packing and marketing workers move to the general Social Security regime.
8. In commerce, invoices must reach retailers within thirty days of receiving the goods, and payment deferrals for perishable food products are limited to thirty days.

Who it affects

• Companies and self-employed workers: Their research and innovation tax deductions, the VAT treatment of investment gold and hiring rebates all change.
• Workers and job seekers: Rules for fixed and discontinuous contracts change, and new hiring rebates are created for certain groups.
• Personal income tax payers: New exemptions for compensation, rules for unit linked policies and an expanded deduction for home adaptation works for disabilities.
• Retailers and suppliers: New deadlines for sending invoices and limits on payment deferrals for perishable products.
• Civil servants: Changes to corps and scales, access of EU nationals to public employment and Social Security rules for university professors with linked posts.

Words worth knowing

Fijo-discontinuo (fixed and discontinuous contract)

An employment contract for tasks repeated at certain times of the year; the worker is called in when there is activity.

Unit linked

A life insurance policy where the policyholder bears the investment risk: its value depends on how the underlying assets perform.

Prescripción (statute of limitations)

The maximum period during which a right or debt can be claimed; after it expires, it can no longer be enforced.

Oro de inversión (investment gold)

Gold bars and coins meeting certain purity and weight requirements, exempt from VAT.

Cabotaje insular (island cabotage)

Sea transport of passengers or goods between ports on the mainland and non-mainland territories, and among the latter.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries