Tax, social and administrative measures for 2001

Automatic summary, not yet reviewed

1. In personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings., exemptions are expanded for compensation for personal injury, for unemployment benefits paid as a lump sum (capped at 2,000,000 pesetas) and for funeral benefits. The filing thresholds are also adjusted.
2. In corporate income tax, a deduction is regulated for investments in Spanish film and audiovisual series productions, and merger or share exchange operations must not have tax fraud or evasion as their main purpose.
3. In the non-resident income tax, the tax rates on capital gains and capital income are aligned with the withholding rates that already apply to residents.
4. In value added tax, the special procedure for refunding tax paid before starting a business activity is adapted, and rules are set for deducting and later adjusting those prior amounts.
5. In the special tax on certain means of transport, exemptions are expanded to taxis, driving school cars, rental cars and vehicles for people with disabilities, and the 50% reduction for large families is kept.
6. In social security matters, the limitation period for collecting contributions, for determining debts and for imposing sanctions is cut from five to four years, and the refund of wrongly paid amounts, with interest, is regulated.
7. Public administrations may transfer civil servants, for service needs, to units or bodies other than their posting, while keeping their pay, essential working conditions and province or island of posting.
8. The public entity Correos y Telégrafos becomes the state-owned company Sociedad Estatal Correos y Telégrafos, Sociedad Anónima, which takes over its functions and the role of universal postal service operator; civil servants join the company keeping their status and rights.

Who it affects

• Taxpayers and companies: Changes in personal income tax, corporate tax, VAT, excise duties and fees, effective January 1, 2001.
• Workers and companies paying social security contributions: Shorter limitation periods (four years) and new rules for refunding wrongly paid amounts.
• Civil servants: Possible transfers for service needs and changes in conflict-of-interest and pension rules.
• Correos employees and postal users: The public entity becomes a state company, keeping the universal postal service.
• The general public: The exchange of pesetas for euros is brought forward: pesetas stop being legal tender on February 28, 2002.

Words worth knowing

Prescripción

Limitation period: the maximum time the administration has to claim a debt or impose a sanction. Once it passes, it can no longer do so.

Estimación objetiva

Simplified way for self-employed people and small businesses to calculate profit using fixed modules set by the administration.

Canje de valores

Share exchange: an operation where the shareholders of one company receive shares of another company in exchange for theirs.

Servicio postal universal

Basic postal services that must be provided to all citizens on equal terms and at affordable prices.

Curso legal

Legal tender: the obligation to accept a banknote or coin as payment. Once lost, pesetas can only be exchanged for euros.

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