What is Trade Income Tax?
Here is a brief explanation of the tax's content
The IAE taxes the development of business, professional or artistic activities in national territory.
They can be exercised in specific premises or without premises.
It is a Tax that is structured on the basis of Tariffs which are designed to classify all economic activities, organising them into divisions, groupings, groups and headings and an Instruction for the application of these Tariffs.
In addition, the tax rates are structured in 3 sections:Section 1, Section 2 and Section 3, which correspond to business, professional and artistic activities respectively.
These are those carried out within a business organisation, understood as the self-management of means of production and human resources or one of the two, for the purpose of intervening in the production or distribution of goods or services, and are covered in Section 1.
Business activities are the following:
Independent livestock.
Mining activities.
Industrial activities.
Commercial activities.
Service activities.
Concept of independent livestock farming:The following are considered as independent livestock farming activities: those whose purpose is the exploitation of a group of livestock which are included in one of the following cases:
Grazing or foraging primarily on land that is not farmed or forested by the owner of the livestock.
Livestock stabled outside rural properties, which are not considered as such if they are fed mainly with products obtained from the owner's agricultural or forestry holdings, even if the livestock installations are located outside the land.
Transhumant livestock, which are not considered as such if they are fed primarily on pasture, silage, hay or feed obtained from land farmed by the owner of the livestock.
A animal that is fed primarily on feed not produced on the farm where it is reared.
For the purposes of this tax, the following are not business activities and are therefore not subject to the tax:
Agricultural activities.
Dependent livestock farmers.
Forestry.
Fisheries.
These are activities carried out by a natural person on his or her own account and personally.They are developed as a manifestation of personal capacity, the personal qualities being essential for their development, and are classified in Section 2. In the event that these activities are carried out by entities, they must register for the correlative or analogous activity in Section 1.
These are those carried out by a natural person or an entity and are classified in Section 3.