THE LEGAL ADVISOR OF A.P.Y.M.E. ANSWERS SOME OF THE QUESTIONS ASKED BY OUR ASSOCIATES.

QUESTION ABOUT EMPLOYEMENT FOR SMALL BUSINESSES

What it the Visits Book (Libro de Visitas) and is it compulsory?

 The Libro de Visitas is the book which you must have in the workplace so that when you receive visits from the inspectors, they can note in it the different occurances that they have observed on their tour of visits.

The Visitors Books must be approved and certified by the Provincial Employment Inspection (Inspeccíon Provincial de Trabajo ). whose offices are in the Administrative Complex in the Caleta.For this to be approved, it is essential that the required documents are accredited, confirming the creation of the workplace through its corresponding registration(alta censal) with the Delegacíon Provincial de la Consejeria de Trabajo.

It is obligatory to maintain this book. The law (Ley 8/1998 on infractions and sanction of the Social Order) states that the absence of this book is a minor offence.This offence can be sanctioned with fines of between 30€ and 300€, depending on the specific circumstances in each case.

What is the Libro de Matricula and is it compulsory?

 The “Libro de Matricula” (as with the Libro de Visitas) must be approved and certified by the Provincial Direction of Employment (la Direccíon Provincial de Trabajo) and the employers must include correct and up to date details of all personel contractedin this book.These employees must be included from the moment that they start to work.

The obligation for employers to maintainthe Libro de Matricula in the workplace is established by law (Ley 8/1998 lawof Infractions and sanctions in the Social Order).Failure by the employer to maintain the Libro de Matricula is considered to be a serious offence, as is the failure to maintain the book correctly and up to date.This infraction can be sanctioned with a fine of between 300€ and 30.000€ depending on the specific circumstances in each case.

Some comments about the taxation of PYMES (small businesses)

A.- We have not commented on this taxation model here and if any associate wishes to have further details about it, they may contact the Association to obtain the necessary information.

B.- The model of direct estimation (el Régimen de Estimación Directa)

B1.- The model of direct simplified estimation (Régimen de Estimación Directa Simplificada.)

Under this taxation system, businesses are not obliged to maintain accounting systems . The only legal requirement is to maintain books of purchases and investments and a sales book, thus allowing a greater simplification and agility in complying with the legal taxation requirements of the business

What requirements and characteristics must a business have to be able to use this tax regimen?

1.- that its activities do not fall in the category of Objective Estimate (Estimacion Objectiva)

2.- that in the previous tax year, the net income (Ingresos Ordinarios) for the total of the taxpayer’s activities did not exceed 600.000€

3.- that it has not renounced its application

4.- that no activity of the taxpayer falls within the normal tax model (modalidad normal)

The great novelty which the system of direct simplified estimation, which differenciates it from the previous model (Estimación Objectiva por Coeficiente) which it has basically replaced, is that this tax model permits all expenses as deductible items, although the amortizations and provisions are calculated in a simplified form, abolishing the coefficient of expenses.

Normal Direct Estimation Model (Estimación directa normal).

This tax system will be applied in general to all businesses and professionals who are not assessed under the Simplified Model (Modalidad Simplificada) nor the Estimated Objective Model (Estimación Objective)

What are the obligatory accounting and registration rules?

1.- When the activity of the business is mercantile, it is compulsory to maintain an accounting system in accordance with that set down in the Comercial Code (el Código de Comercio)

2.-For those business activities which are not of a mercantile nature, it is only compulsory to maintain the books of sales and income, purchases and expenses and investments.

3.- For professional activities, it is compulsory to maintain the books of income, of expenses, of investments and provision of funds and replacements

There is another taxation system. Here we are referring to the Objective Estimation System (sistema de “Estimación Objectiva)

 What are the peculiarities of the Objective Estimation System (sistema de Estimación Objetiva)?

This taxation system essentially corresponds to the system of Estimation Objectiva by Modules (already commented on by the Association)

If you have any questions or wish to obtain more information about the subjects discussed here, or if you have any other questions or require information on other matters, you can contact the Association’s Legal Advisor, who will clarify the matter or provide you with further information.