Tax matters can cause a certain amount of anxiety and reluctance. Nevertheless, these obligations are unavoidable for both natural and legal persons. In this respect, it should be borne in mind that there are tax obligations across different territorial levels and that they vary depending on the taxable event that gives rise to them.
For this reason, it is of great importance to have the advice of experts who are willing to guide our steps on this delicate subject. At BBMabogados we have the finest specialists in fiscal and tax matters, so do not hesitate to contact us.
What are taxes?
By way of preliminary note, it is worth pointing out that taxes are nothing more than the payments we are required to make as citizens to the administration. For its part, they involve no direct consideration in return from the State, their main purpose being to finance its own activities as well as social policies.
DIRECT AND INDIRECT TAXES
We can divide taxes according to the basis on which they are applied, giving us direct and indirect taxes. In the first case, direct taxes are charged on the assets of the liable parties, that is, houses or land, income, etc. Indirect taxes, on the other hand, are charged on the manifestation of that wealth or on how it is used.
Some examples of direct taxes in Spain are Income Tax, Corporation Tax, Inheritance and Gift Tax, Property Tax, the Tax on Economic Activities, among many others.
Indirect taxes, on the other hand, include Value Added Tax and the Tax on Property Transfers and Documented Legal Acts, among others.
Local taxes in Santander
It is important to note that taxes may be established at different political and territorial levels. In this respect, there are national, regional and municipal taxes.
As a result of the above, it is necessary to be informed of the taxes specific to the Community or municipality where we live or carry out our economic activity. In this way, we ensure that we are up to date in fulfilling our tax obligations towards the administration.
Thus, we find that the consolidated text of the Local Government Finance Act (Ley Reguladora de las Haciendas Locales) sets out the features of the municipal tax system. It also establishes the duty of Town Councils to levy Property Tax, the Tax on Economic Activities and the Tax on Motor Vehicles. Likewise, they may optionally establish the Tax on the Increase in Value of Urban Land and the Tax on Constructions, Installations and Works.
Let us look in detail at the most common local taxes we may encounter in Santander:
PROPERTY TAX
This is a direct tax of a real nature (that is, it disregards the personal element). The taxable event is the ownership of a series of rights over real property, which are listed below:
-The existence of an administrative concession over the property itself or over the public services to which it is attached.
-The existence of a right in rem of surface or usufruct.
-The existence of the right of ownership.
As regards the tax base, it is set in accordance with the cadastral value of the real property. This value may be affected by an update in the General State Budget Acts, or by a general collective valuation procedure. The latter is a process that seeks to update simultaneously the cadastral values of properties of the same class within a municipality, with the aim of standardising them and referencing them against market values.
TAX ON ECONOMIC ACTIVITIES
This is also a direct tax of a real nature. The taxable event is the pursuit of business, professional or artistic activities. However, natural persons and the taxpayers subject to Corporation Tax, Civil Partnerships, the State, the Autonomous Communities and Local Entities are exempt from it.
TAX ON MOTOR VEHICLES
This is a direct tax charged on the ownership of vehicles suitable for driving on public roads, regardless of their class and category. The fiscal ordinances may regulate the tax rate (with a reduction) taking into account the type of fuel or the characteristics of the engines and their impact on the environment.
TAX ON CONSTRUCTIONS, INSTALLATIONS AND WORKS
This is an indirect tax whose taxable event is the carrying out of a construction, installation or works for which a building or planning licence is required.
The tax base is given by the actual and effective cost of the construction, installation or works.
TAX ON THE INCREASE IN VALUE OF URBAN LAND
This is a direct tax charged on the increase in value undergone by urban land. The tax base of this tax is made up of the increase in the value of the land.
LAWYERS WHO EMPATHISE WITH THEIR CLIENTS IN DIFFICULT TIMES
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