What is the Tax on Economic Activities or IAE?

The Tax on Economic Activities (IAE) is a municipal tax levied on the performance of any type of economic activity.

Currently, the tax is only required of those companies that have a turnover of more than 1 million euros in common territory and 2 million euros in provincial territory. However, companies with a lower turnover, as well as individuals, are obliged to register in the census of activities indicating their activity within a period of 1 month from the start of the activity.

How is the IAE calculated?

The Economic Activities Tax (IAE) has different quotas depending on the territory in which the activity takes place. Thus, we can have state, provincial and local quotas.

Broadly speaking, business economic activities are divided into industrial, commercial, service and mining activities, the classification of which, in turn, is made into headings that anchor them to a specific activity.

However, in the management of this tax, the classification of activities plays a determining role. The assignment of one heading or another may entail a different form of taxation and, therefore, savings.

The determination of the IAE fee depends on the rules contained in each of the sections. Thus, in a generic way, its calculation is made from the activity quota (it may depend on the installed power in KW, the right population, the hospital beds, the capacity of the spectator premises, the stars or the hotel categories…) and / or the area quota.

By reviewing and updating these parameters, we achieve the correct determination of our clients’ tax, adapting it to their actual activities. Therefore, we can help you pay only your share for your business.

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