Tax Consultancy in Valencia
We handle your tax obligations and advise you on tax matters. Our team of professionals has extensive experience. Our activity focuses on advising national and international groups of very diverse sectors in all tax areas with the aim of achieving tax optimization of their economic and business operations through proper planning and ongoing advice. We offer the following solutions for your company:
- Ongoing advisory services for companies regarding the fulfillment of their tax obligations in order to optimize their tax burden.
- Analysis of taxation for specific financial transactions, such as acquisitions, mergers, takeovers, spin-offs of lines of business, etc.
- Tax planning for corporate structures from both a national and international perspective
- Taxation for personal and family assets, emphasizing estate and inheritance taxation.
- Advice and tax planning for groups taxed under the fiscal consolidation regime.
- Taxation for trusts and not-for-profit organizations, such as foundations and associations.
- Transfer pricing policies.
- Relations with the Tax Administration, especially with regard to representation in the event of a tax inspection.
- Appeal and claim proceedings involving the Tax Administration and contentious-administrative courts.
- Tax audits.
- Advice on local taxes and rates merits special consideration, as these types of taxation are often overlooked. Despite this, they may represent a significant financial burden.
- Application of double taxation treaties and optimization of taxation for capital gains, dividends, interest and royalties.
- Preparation of payments of taxes for client to fullfil their tax obligations.
- Attention and response to requirements of the tax authorities.
- Preparation of appeals and communications to the tax authorities.
Carrying out Investigación, Desarrollo e Inovación(I+D+i, Research & Development + Innovation) activities will give you the right to a deduction from the gross tax payable on the Impuesto de Sociedades (IS, Corporate Income Tax), in accordance with the provisions of Article 35 of Royal Decree 4, of 4/2004, and subsequent amendments.
The benefits from using this deduction include:
- Create a tax deduction of up to 42% on authorized R&D costs (plus an additional deduction of 17% for research staff and 8% for investments related to R&D), as detailed in the law mentioned above, and 12% of authorized innovation costs.
- A period of 18 years for applying the deduction in the event of financial years with losses, and when the gross tax payable does not allow it to be applied before.
- Use of the deduction for up to 60% of the gross tax payable of the Corporate Income Tax.
- It provided an economic benefit that can be combined with subsidies and other financial aid received for the same activity.
- Freedom to apply the full deduction up to REDUCING THE GROSS TAX PAYABLE TO ZERO (0), or REQUEST A CREDIT, provided that certain requirements are met*.
It’s very simple to take advantage of this opportunity:
- Request the issue of an Informe Motivado Vinculante (IMV, Binding Reasoned Report) from the state Ministry of Economy or an organisation authorised by it.
- Present the report to the State Tax Agency.
- Use the most appropriate deduction in the Corporate Income Tax.
Gestión Valenciana will help you get the Binding Reasoned Report, and take full advantage of your deduction on the Corporate Income Tax.
(*) Requirements for full application of the deduction or to request the credit:
– You cannot have applied the amount of the deduction to the tax from the previous financial year.
– Show that you have maintained the personnel dedicated to working on R&D.
– Show that the R&D budget has been maintained or increased.
– Availability of a reasoned report issued by the state Ministry of Economy and Competitiveness or an organization authorized by it.
– Accept a 20% reduction in the amount to deduct..
The credit limit will be 1 million euros for innovation activities and 3 million euros for R&D activities.
More information on the option for full between application or credit option can be found in the law for entrepreneurs (Law 14/2013) or by consulting Gestión Valenciana, where we will be glad to help you.
This measure allows for a 60% reduction in the amount to incorporate into the tax base on income obtained from the assignment of rights of use or exploitation of intangible assets such as patents, drawings or models, plans, secret formulas or procedures, and rights for information based on industrial, commercial and scientific experience.
These are net incomes based on the positive difference between incomes obtained from assignment and the expenses and deductions derived from them. If the intangible assets not recognised in the balance, net income will be considered as 80% of the incomes coming from their assignment.
Certain requirements must be met to make use of this benefit:
- The organisation assigning the rights must have created the assets to the degree of at least 25% of their costs.
- The results from the activity of the recipient of the rights do not create tax-deductible expenses for the assigning company when they are linked.
- The recipient of the rights may not be located in a tax paradise, unless it is one in the European Union and the taxpayer can prove the operation is for valid economic reasons.
- When other activities or services are included in a contract for assigning rights, they must be clearly differentiated from the assignment.
- The company must have the accounting registers necessary for properly determining the direct and indirect incomes and expenses derived from the assignment.
This reduction of the tax base does not apply to: brands and trademarks, or literary, artistic and scientific works, including films for cinema, with personal rights subject to assignment, such as image rights, computer programmes, or industrial, commercial and scientific equipment, or any other right or asset apart from the ones indicated.
To apply it with Legal Certainty:
The taxpayer can request, prior to application, a binding Acuerdo de Calificación(Qualification Agreement) from the Dirección General de Tributos (General Directorate for Taxation) recognising qualification of the incomes in the categories accepted for the reduction. An Acuerdo de Valoración (Assessment Agreement) can also be requested, where the taxpayer accepts an assessment of the amount to deduct from the tax base.
Gestión Valenciana will help you prepare the documentation required for the Qualification Agreement of income, and the Assessment Agreement of them to enable you to be able to act with Legal Certainty.
R&D+i activity is a fundamental tool of the competitiveness of companies and a basic element for their development. That is the reason governments and administrations promote R&D+i activities, in an attempt to share or reduce the risk for those business leaders who decide to make a commitment to R&D+i.
Organisations and public agencies on the regional, national and European level convoke and administer programmes to promote R&D+i for companies. These programmes offer companies a chance to have access to a number of financial resources for their R&D+i projects. They include the following options:
- Subsidies: a credit for one portion of the cost of the R&D+i project, with a public agency participating in and supporting the project. These subsidies are often paid for expenses already carried out and justified to the administration, although in many cases there is the option of having access to advance payment to provide liquidity for the project. Depending on the programme, the subsidies are used to finance expenses directly related to the project, such as salaries and Social Security contributions, materials, equipment, tangible assets, outside collaborations, general expenses, etc.
- Subsidised Loans: This involves financing the project through a long-term loan with favourable terms as far as interest rate, return of principal and consideration of bank risk compared to what the market offers. These loans can also be combined with subsidised tranches. Beyond the special terms, their main advantage is that they allow the investment for the R&D project to be amortised over a long period of time after its completion.
- Risk and Seed Capital, private financing: There are public programmes which promote financing through the injection of capital in the company by public or private agents who buy its equity shares. These agents can take on different positions within the company, ranging from participating only in the financing to assisting in the administration and promotion of the company. These are temporary involvements in the company which supply capital during an initial phase of the R&D project in order to make its participation profitable through growth of the business before leaving the project after a few years.
Gestión Valenciana is at your disposal to get to know about the projects of your company and provide advice on the best way to finance them, drawing on our extensive experience in the financing and management of R&D+i projects. We will work alongside you through the entire process of identifying the most suitable source of financing, in obtaining and managing of financing and managing your tax obligations.
Two fundamental analyses for developing the R&D+i activity of the company and strengthening its competitiveness are an external analysis of the technological and competitive environments of the company and an internal analysis of company activities and resources.
Continual awareness of the technological and competitive environments is essential for the external analysis in order to stay ahead of changes in the competitive environment and identify new paths to follow. An analysis of the internal information of the company and business is fundamental for the internal analysis as well as an analysis of the opportunity offered by its internal resources based on the knowledge, experience and abilities of the personnel. The internal information and business analysis can be done through the company registers and reports; making use of the opportunity offered by the company’s human resources has to come from techniques for stimulating creativity and knowledge.
- Technological awareness: This involves implementing tools and actions directed at following the technological evolution of the sector. It attempts to know about the research and technical developments available in a particular sphere, like all patents that may exist, and all projects under way in a given area of research and development. This awareness must serve to discard potential researches or developments that have already been done; it has to anticipate future research and development trends that can open new paths of work for the company to stay ahead of the market and competition. Finally, it has to present the leading companies in the sector in order to situate the company and be able to anticipate future strategies and alliances that may help to develop the R&D+i and competitiveness of the company.
- Awareness of the Competition and Market:This involves implementing tools and actions directed at following the competitive and technological activities of the competition, changes in the competitive and economic environment and the evolution of the market and demand, anticipating future commercial and consumer trends and opportunities. This activity allows us to identify the positioning of the competition, detect new commercial or business opportunities, new niche markets, and anticipate future consumer and buying trends, the source of R&D+i projects.
- Creativity: This involves implementing an internal procedure of analysis that concludes with a series of work dynamics providing results in terms of opportunities for innovation, competitiveness and business. These work dynamics, over an intense prior analysis, are put it into practice with a group of people from different areas of the company who have certain abilities and tendencies in common. Various techniques to overcome inhibitions, create ideas, analysis and evaluation are implemented. A series of opportunities concerning competition, business and innovation are the result of those techniques, prioritised according to the strategic goals of the company.
Gestión Valenciana will help you do the necessary external analysis by putting the activities related to awareness of the technological and competitive environment into operation. It will help with the internal analysis through studying the existing report and development of the creativity sessions to make the fundamental abilities of your company flourish and identify the future R&D+i opportunities for improving your strategy and competitiveness.