|Type of Tax||Direct|
|Collected by||Provincial Government|
|Paid by||Corporate entities|
|Tax base||The annual profits, i.e. the result of subtracting any expenses from the income|
|Abatements in the base||There are different abatements for small and medium-sized enterprises. For more information click here|
|Net tax base||Calculated by subtracting the corresponding abatements from the tax base|
|Tariff or Rate||Generally, 24%; for small enterprises, 20%. For more information click here|
|Liability||Calculated by applying the tax rate to the net tax base|
|Deductions||Among others, those resulting from promotion of R&D (Research and Development)|
|Amount payable||Calculated by subtracting the corresponding deductions from the tax liability|
Company Tax is a direct personal tax. in the Basque Autonomous Community, in accordance with the Economic Accord, the provincial governments are responsible for collecting this tax; i.e., the Provincial Governments of Araba, Bizkaia and Gipuzkoa.
Company Tax is levied on the income, i.e. the profits obtained by the taxable parties. This tax is paid by commercial corporations on the profits obtained, and is calculated on the basis of those profits.
Profits are calculated as follows: Any expenses are subtracted from any monetary income. And the increase or reduction in equity is calculated as follows: from the income obtained from the sale of the equity the total used in the purchase of said equity is subtracted.
Zurlan, a company located in Eibar, has a workforce of 60. The company had the following income and expenses:
Does it have to pay Company Tax? How much? What is this company's net profit?
Firstly, we need to analyse whether the company has had any profits. To do this, we calculate the difference between income and expenses. In this case: