Introduction
Royal Decree Law 4/2013 of 22nd February responds to the urgent need in our country for structural modifications in business and in the employment market.
In order to do so, it lends special attention to young people, encouraging their hiring, and granting fiscal benefits to employer and entrepreneur.
Principal aspects of the reform
• Seeking to improve the Strategy of Entrepreneurship and Youth Employment 2013-2016, the reform eases labour inclusion, and grants reductions and rebates in Social Security contributions. In particular, it comprises the implementation of a reduced initial fee, allows unemployment benefit entitlement to be combined with self-employed activity, and the extension of the possibilities to capitalise unemployment benefit.
• Fiscal incentives.
1. Newly created entities pay corporation tax in their first positive tax base period, and in consequent periods, according to the following scale:
a) For a tax base between 0 and 300,000 Euro at a rate of 15%
b) For the remaining tax base (exceeding 300,000 Euro) at a rate of 20%
2. Modifications to personal income tax:
a) Taxpayers, that initiate economic activity and set their profits according to the direct estimation method, may reduce their net declared profit by 20%.
b) Possibility of a 20% reduction for new economic activity.
• Stimulation of recruitment including special incentives for part time hiring, permanent hiring for micro business and new projects, temporary recruitment and in-training recruitment.
• Measures related to the improvement of labour intermediation through the joint formalisation of standard agreements in order to facilitate labour intermediation.
• Promotion of diverse measures for improving business finances, making the access to non-bank financing easier for Spanish businesses.
• Extension of the financing mechanism for payments to the suppliers of local and regional entities, in subjective and objective spheres (liquid, due and payable, obligations before 1st January 2012).
• Adjustment of measures for fighting against non-payment in commercial operations.
Other measures
• Railway sector: Propelling the liberalisation process already in progress.
• Hydrocarbon sector: providing logistics efficiency, eliminating administrative barriers and promoting competition for new operators.
Vilá Abogados
For more information, please contact:
14th of March 2013
