He IAE or Economic Activities Tax It is a direct tax, which taxes both self-employed workers and legal entities, for the mere fact of carry out a business activity, professional or artistic in Spanish territory. He high in IAE supposes the beginning of a business activity and is a tribute managed by the town councils.
The obligations of taxpayers in relation to the IAE are:
- Those who are not exempt from the IAE are required to submit a registration declaration, and must use the model 840.
- Taxpayers who have been applying any of the exemptions established in the tax must submit a declaration of registration in the IAE, when they no longer meet the conditions required for their application.
- Submit a declaration by means of which the variations of a physical, economic or legal nature are communicated, which occur in the exercise of the taxed activities and which have significance for the purposes of their taxation by this tax.
- Submit a declaration of withdrawal from the activity when the exercise of an activity for which they are registered occurs.
Before registering in the Special Regime for Self-Employed Workers (RETA), You must apply for registration in the IAE (Economic Activities Tax) as a businessman or self-employed professional, in order to classify business and professional activities through the code called “activity heading”.
You can register for the Economic Activities Tax, with the model 840 online (with digital certificate) or deliver it to the Tax Agency offices.
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Do all entrepreneurs or self-employed workers have to pay the IAE?
Not all entrepreneurs or self-employed people have to pay the IAE, since there are the following exceptions:
- In the first two years of activityBoth self-employed workers and companies are exempt.
- From the third year, it must be paid if invoiced more than one million euros annually, so many self-employed workers are exempt from presenting it.
How to identify the IAE heading that corresponds to you?
To register in the IAE, you must first find the heading that best suits the activity that is going to be carried out, so this must be identified among all the activities of the list of headings of the Tax Agency. This code must be included in form 036 or 037 when a self-employed person or legal entity registers with the Tax Agency, thus entering the Census of Entrepreneurs, Professionals and Withholders.
The IAE headings They are divided into 3 categories:
•Business activities: livestock, mining, industrial, commercial and services.
•Professional activities.
•Artistic activities.
It will also be necessary to identify the code CNAE (National Classification of Economic Activities, which is a numbering system which aims to group and classify all production units (companies and self-employed workers) according to the economic activity they carry out. to each unit a numerical code is assigned This is what is called CNAE Code.
How much do you have to pay for the IAE?
He list of rates that corresponds to each heading and the payment method is published in the Royal Legislative Decree 1175/1990, of September 28, which approves the rates and instructions for the Tax on Economic Activities.
Depending on the type of activity, tax collection can be at the local, provincial or state level.
If a company carries out its activity in different locations and each of these premises is in different locations, said company may have to pay the tax in each of the municipalities in which it has premises, depending on the type of business activity in question.
