TAX & VAT INCREASES 2010
Act 26/2009, 23rd December, General Budget for 2010. This law has introduced important modifications in the field of Tax. As part of these modifications it is significant to note the increase of
- 18% tax rate to 19% (for the first 6.000 Euros) or 21% (for income above 6.000 Euros) applicable to capital source income.
- Non Resident Income Tax rate has risen from 18% to 19%
- VAT Rates (general rate to 18%, previously 16%, reduced rate to 8%, previously 7%).
The increases in VAT will be introduced from 1 July 2010 and the income tax rates came into effect on 1 January 2010.
Resolution, 23rd December 2009, of the Spanish General Tax Directorate.
According to this Resolution, the Administration has tried to apply the “VAT package” implemented by the European Union (EU Directives 8/2008 and 9/2008) as a consequence of an infringement in its transposition to the internal Spanish Law by the Spanish Government. Apart from a near future correct transposition of the EU Law, the “VAT package” introduces important modifications in the localisation rules of such tax.
SPANIARDS TO RETIRE AT 67?
The financial maintenance of the Social Security System the Spanish Government has proposed to delay the pensionable age up to 67 years. This reform of the retirement system would be applied gradually from the year 2013 until the pensionable age reach the age of 67 years in 2025. At the moment, it is only a suggestion submitted to debate which has provoked protests from the unions.
NEW CRIMINAL AND CIVIL PROCEDURES AND POWERS TO COURT SECRETARTIES
Act 13/2009, of 3rd November, to reform legislative procedures and the creation of a new judicial office. On 4th November 2009 the above law was published in the official bulletin (BOE) and will come into force six months from the date of publication, except paragraph 10 of section 15 of the law which is applicable as of 5th November 2009.
This Act focuses on rationalising and optimising resources, delegates powers further between Judges and Courts on one hand and Court Secretaries on the other. In fact, there are new powers for the Court Secretaries such as the opening of files, admission of accumulated actions, decisions regarding the anticipated end of the proceedings due to the petition of the claimant and enforcement measures.
Furthermore this reform of the procedure rules is also focused on improving good practice and provides guarantees for the process such as the recording of hearings in criminal, labour and administrative proceedings.
In respect of criminal procedure, it re-establishes the balance between all parties and includes for example, passing the file to the defendant before deciding to either archive the matter or summon all the parties to a trial to hear the petition for closing the file, or to offer new evidence.
Finally, a highlight in the civil side is the amount established for speedy debt recovery proceedings (juicio monitorio) which increases from 30,000 to 150,000 euros. This will allow more trials to be dealt with in the speedier process. Only time will tell if this will achieve a reduction in waiting time to get to trial!