Do I have to file an IAE tax return?

Taxpayers required to file the IAE declaration

• Entities that carry out one or more economic activities in Spanish territory and the net amount of the turnover (INCN) is equal to or greater than €1,000,000 . The form to be submitted is 840 or the one approved by the local entity in the case of municipal fees whose management is delegated to said local entity.

• Taxpayers of the Non-Resident Income Tax, who operate in Spain through permanent establishment and whose net turnover (INCN) is equal to or greater than €1,000,000 . The form to be submitted is 840 or the one approved by the local entity in the case of municipal fees whose management is delegated to said local entity.

For the calculation of the INCN the taxpayer, the set of economic activities carried out by him will be taken into account.

In the case of entities that form part of a group of companies due to the existence of any of the circumstances considered as determining the existence of control, the INCN will refer to the set of entities belonging to said group, regardless of whether or not accounting consolidation is required.

In the case of taxpayers for Non-Resident Income Tax, the INCN attributable to all permanent establishments located in Spanish territory will be taken into account.

They are exempt and are not required to file the IAE declaration

1. The State, the autonomous communities and the local entities , as well as the autonomous bodies of the State and the public law entities of a similar nature of the autonomous communities and the local entities.

2. Entities that start their activity in Spanish territory are exempt during the first two tax periods. For these purposes, an activity will not be considered to have started when it has previously been carried out under another ownership. This occurs, among other cases, in cases of mergers, division or contribution of branches of activity.

   In the case of companies that start their activity and fall under this exemption, but also carry out other activities for which they have to file Corporation tax, are required to file this tax return.

3. Natural persons , whether or not they are residents in Spanish territory.

4. Entities that carry out one or more activities in Spanish territory and have a net turnover amount (INCN) of less than €1,000,000. ##

5. Taxpayers of the Non-Resident Income Tax, who operate in Spain through permanent establishment and have a net turnover amount (INCN) less than €1,000,000.

6. The Social Security management entities and the social security mutual funds regulated by Law 30/1995, of November 8, on the regulation and supervision of private insurance.

7. The public research bodies, the teaching establishments at all levels, fully funded by the State, the autonomous communities or local entities, or by foundations declared charitable or of public utility, and the teaching establishments at all levels that, not being for-profit, are under an educational agreement regime. It is on request, at the application of a party and is granted when appropriate.

8. The and foundations of people with physical, mental and sensory disabilities, non-profit, for the educational, scientific, assistance and employment activities they carry out for the teaching, education, rehabilitation and guardianship of people with disabilities. It is on request, at the application of a party and is granted when appropriate.

9. The Spanish Red Cross.

10. Taxpayers to whom the IAE exemption applies by virtue of international treaties or agreements .