Accounting and Registration Obligations

Keeping of accounting records

Article 120 LIS indicates that taxpayers of this tax must keep their accounting records in accordance with the provisions of the Commercial Code or with the provisions of the regulations by which they are governed. Therefore all taxpayers, including those not deemed as companies, are obliged to keep accounting records in the format set forth in prevailing standards or, failing that, in the Code of Commerce.

In any case, partially exempt organisations shall keep their accounting records in such a way that the income and expense entries corresponding to exempt and non-exempt income can be identified.

The Code of Commerce states that all business owners must keep their accounting records in an orderly fashion, suitable to its activity and enabling a chronological monitoring of all of its operations to be carried out, as well as the regular preparation of balance sheets and inventories. All businesses, without prejudice to the Laws and special provisions, are required to keep an inventory log and annual accounts and also a day log.

As for the accounting management, article 29.1 of the Code of Commerce states that all accounting books and documents must be managed- whatever the procedure used - in a clear manner, listed by date, without blank spaces, interpolations, crossing outs or scrapings. As soon as errors or omissions are noticed in the book entries, they must be immediately corrected. No abbreviations or symbols may be used with meanings not specifically in line with the Law, the Standards or generally accepted business practice.