Tax and labor measures to support businesses and create jobs

Automatic summary, not yet reviewed

1. It raises from 8 to 10 million euros the revenue limit for small and medium-sized companies to use the special regime for small entities, and increases to 300,000 euros the portion of the tax base taxed at 25%.
2. It allows free depreciation of new investments in fixed assets used for business activities, with no requirement to keep jobs, and extends the incentive to 2015, also for individuals.
3. It exempts from the Transfer Tax the incorporation of companies, capital increases and other operations aimed at creating, capitalizing and maintaining businesses.
4. Membership in the Chambers of Commerce becomes voluntary and the permanent chamber fee is abolished: only those who choose to belong to a Chamber will pay the fee.
5. It speeds up the incorporation of limited liability companies with online procedures and short deadlines, and removes the duty to publish many corporate acts in newspapers, using instead the Official Mercantile Registry Gazette and the company's website.
6. It creates «Aena Aeropuertos, S.A.» to manage airports, allows private capital and individual airport management through concessions or subsidiaries; turns Loterías y Apuestas del Estado into a state company with up to 49% private participation; adds 1,500 employment promoters until December 31, 2012; raises tobacco taxes; and brings newly hired civil servants into the General Social Security regime for pension purposes.

Who it affects

• Small and medium-sized companies: They pay less tax and can freely depreciate their new investments.
• Businesses in general: They save the chamber fee and newspaper advertising costs, and can set up companies faster and cheaper.
• Unemployed people: They get 1,500 more employment promoters in public employment offices through the end of 2012.
• Smokers and tobacco manufacturers: Taxes on cigarettes and rolling tobacco go up, making tobacco more expensive.
• Civil servants hired from 2011 on: They contribute to the General Social Security regime for pension purposes.

Words worth knowing

Libertad de amortización (free depreciation)

Allowing a company to deduct the cost of a new investment from its taxes in the year it is made, instead of spreading it over several years.

Régimen de entidades de reducida dimensión (small entity regime)

A set of tax benefits the law gives to small companies under corporate income tax.

Recurso cameral permanente (permanent chamber fee)

A mandatory payment all companies made to the Chambers of Commerce to fund them.

Actos societarios (corporate acts)

Official decisions and procedures of a company, such as its incorporation, changes to its bylaws or a capital reduction.

Clases Pasivas (State pension scheme for civil servants)

The regime that managed pensions for public employees.

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