A Guide To accounting and taxation

A Guide To accounting and taxation

Live in Spain, is subject to tax. If you want to move to Spain, then this writing, this country will provide you with the necessary information related to tax and labor law. First of all, the Spanish law, all residents whether they are real or legal persons, requires that you have to pay taxes. These fees can be applied all over the world come. Taxation of foreigners to pay for the object only applies to the income they earn, or the Spanish territory.

According to Spanish law, there are three levels of payments. These taxes, fees and contributions are classified as. In addition, Spain direct taxes, classified corporate tax, income tax, and there are foreign income taxes. In the same way, individuals and businesses are also indirect taxes, if any, roomates Value Added Tax (KDV), transfer and stamp tax is included. Some of the country's other major taxes, company tax, capital gains tax, gift tax, tax, offshore companies, social security, among others, includes the.

For those who wish to reside permanently in Spain consider the advice of professional tax advice. Tax revenues available in hard and heavy fines. Therefore, we pay taxes to the government in Spain, and we recommend that you regularly without fail. For those who do not understand the Spanish tax system, the easiest way to do this is to levy taxes is to understand the three orders of government. These levels are autonomous regional governments and municipalities, the central government. Because the complex system of taxation in Spain, various tax consulting firms have come to the country. These companies offer professional advice on taxation to different clients.

About Employment in Spain, the country has a modern constitution and a highly regulated labor market. Workers' Statute of Spain as the basis for all employment relationships. Individuals 18 years of age to start working, tenants can make a binding contract with an employer. European Union (EU) the necessary permission for people who work permit, even if not needed. The residence permit is valid for a period of five years. For non-EU citizens, a work permit along with a residence permit is required. Work permits are usually issued for a period of 12 months, but for a period of 5 years and is to be exported. This work permit, the employer or the individual restrictions make in this area.

In addition, different laws on health and safety, social security, and there are other laws. Many consulting firms in Spain on the part of a variety of business law, employment, wages, transfers and layoffs, and business leaders were appropriate recommendations.

Cash or Accrual Stelsel stelsel

Cash or Accrual Stelsel stelselUnlike the General Accounting Pnsip in confronting the cost to revenue (cost matching revenue again) that admits stelsel accrual accounting recognizes stelsel tax accruals and cash system.
Stelsel Accrual: the method of calculating income and expense recognized in terms of income and expense is recognized when earned when due. So it does not depend on when the income was ditema and when the cost was paid in cash.
Including accrued stelsel sense: the recognition of revenue based on percentage of completion method commonly used in construction and other methods used in the field of business such as: Build Operate and Transfer (BOT), Real Estate, and others.
Stelsel Cash: calculation method is based on income and expenses ditema paid in cash. Income shall be considered as income, when it really has ditema cash in a particular peode, and the cost shall be considered as a cost, when actually been paid in cash in a certain peode.
Cash system is typically used by small companies OP or agency,For example:- Transport,- Entertainment,- Restaurant, a grace time between service delivery and payment penemaan not last long. In pure cash system, income da delivery of the goods or services specified at the time of ditemanya repay da subscriptions, and fees are set at the time of payment of goods, services and other operating costs.
In this way, the use of cash system can lead, calculating the obscure to the income, the amount of income da year to year can be adjusted by setting penemaan cash and cash disbursements.
Therefore, to calculate the income tax using cash system must consider among other things the following:a. Counting the number of sales in one peode should include all sales, both cash and non.HPP should be taken into account in calculating the entire purchasing and inventory.b. In obtaining the depreciable property and rights that can be amortized, costs are deducted da income can only be done through depreciation and amortization.c. Use cash system should be carried out in strict accordance with the principle (consistent).
6. Histocal Cost:As well as general accounting every transaction is recorded in accordance with the value histosnya, except for cash balances, bank accounts and foreign currency debt. Taxpayers can reassess using BI middle rate that recognized the existence of foreign exchange gains and losses.Denan assessment method LOCOM (Lower of cost or market) is not dikenal.2
7. The principle of realization than the Conservatives:Taxation recognized the advantages and disadvantages if it is realized. Allowance is not allowed except for banking, leasing, insurance and mining.
8. Matealitas unknown:Spending a useful life of over one year are capitalized da and charged through depreciation or amortization without notice matealitasnya.
9. Unity Business:Each Entity is represented by an identity separate tax ID da owners.
10. Peode Tax Accounting:Tax Year is peode 12 months. WP can choose to use a calendar year or other peode 12 months is not the same as the calendar year. Changes in the financial year must get permission da DGT.
11. Main concept in determining income and Fiscal Costs:a. Separation income tax is not an object, subject to final income tax, and is not subject to Final Tax (tax objects) as well as costs terkai. If not separated calculations related costs will be proportionally.b. Costs are recognized costs related to the business (3M).c. Recognition of income and expenses and realization of the principles embraced not see matealitas principle.d. Spending a useful life of more da 1 yr should not be charged at once.e. Tax does not recognize the costs associated with income and income tax is not an object subjected to final tax.f. Measurements with histocal cost and does not recognize other measurements such as COMWIL.g. Revenue recognition and realization of the principles adopted fee.The principle of conservatism is not recognized except for companies that are allowed ttt recognizes allowance for doubtful accounts.h. Spending a useful life of over one year are capitalized regardless da matealitas (matealitas principle is not used). 

Accounting Of Taxation

Accounting Of Taxation

Tax accounting as set out in Taxation is a lex specialis for the purpose perpajakan.1
In general, all the tax rules do not regulate the procedure and rules to comply with general accounting policies in accordance with accounting pnsip Pnsip ditema-general. This is explicitly stated in the explanation of Ps-28 clause (7) CTP. Bookkeeping should be organized in a way or system that is commonly used in, for example: by the Financial Accounting Standards, Statutory Regulations unless otherwise Taxation.

Accounting accounting general taxation compared:

1. Going Concern: The concept of business sustainability as fundamental accounting pnsip also adopted in accounting taxation. Imposition of property through depreciation and fiscal loss compensation is a form of da pnsip business continuity.

2. Beat substance Shape:
In accordance with the CTP that holding books be in good faith and represent the real situation.

3. Neutral is not:
Aiming for tax purposes which can be calculated the amount of tax payable, whether income tax, VAT and other taxes.

4. Obey Pnsip principle:
Pnsip pnsip obey the same principle is used in the method of accounting with previous years, in order to prevent the shifting of profit / loss.


The principle of abiding principle in the method of accounting for example in the application of
a. Stelsel recognition of revenue;
b. Year of Books:
c. Inventory Valuation Methods;
d. Methods Depreciation and Amortization.

`Explanation paragraph (6) CTP explained that essentially bookkeeping methods adopted should be consistent, that should be the same as in previous years, for example in the use of methods of recognition of income and expenses (cash or accrual method), the method of depreciation of fixed assets, sebagainnya inventory and assessment methods. However, the change in accounting method is made possible with the terms approved da DJP before the start of the financial year in question by presenting logical reasons and can ditema and the consequences that may arise da changes.

Changes in accounting methods would result in a change in pnsip abiding principle to include peruhan da cash to the accrual method or vice versa. Changes in methods of recognition of income or expense recognition that joint. For example, the method of confession costs related to depreciation of fixed assets depreciation using certain.

Example:
WP in th 2002 Straight Gas depreciation method (straight line method). In the years 2003 WP intends to change the method of depreciation using the declining balance depreciation method (declining balance method).
For this purpose, the WP must get prior approval to the DGT filed before the start of th 2003 book stating the reasons for the revision of the depreciation method and effect da changes.

In addition, changes peode th book also entails changes in the amount of income or loss WP therefore these changes must also be approved by the DGT.

Tax Year: is equal to th calendar (old calendar), except WP using th book is not the same as the old calendar. If WP using th book is not the same as the old calendar, the mention of th related tax using th which includes the first 6 months or so.

Benefits of Bookkeeping Accounting and Recording

Benefits of Bookkeeping Accounting and Recording
Mandatory Bookkeeping (Ps-28 paragraph (1) CTP:- WP OP conducting business or independent;- WP Agency
Compulsory Registration:- WP OP is not Doing business activity or independent.- Wp OP conducting business or professional services with a turnover not exceeding 600 million a year. (KEP-536/PJ./2000) -> KMK.03/2007 -> does not exceed 1.8 billion.
Calculation of net income for taxpayers who hold records computed by calculating norms (ps-14 Income Tax), namely:
Net Income = Gross Income% norm xNever Results LOSS
Article 14 paragraph (5) Tax: WP are obliged to keep books, including WP referred to in paragraph (3) and paragraph (4), which was not / not fully organized records or books of account or records do not show / bookkeeping or supporting evidence , then the income netonya Deemed Income is calculated based on the net or other means specified by KMK.
The amount of calculation norms stipulated in KEP-536/PJ./2000 jo SE-02/PJ.43/2001. WP OP using the norm calculation should membetahukan DGT advance to a maximum of 3 months from the beginning of the tax year, if not filed pembetahuan be choosing books.
Pembetahuan term shall be deemed approved unless da results pemeksaan WP ineligible. WP who organized the recording without pembetahuan netonya fixed income calculations done by calculating the norm but WP penalized by 50% da tax payable. (Frms: 1).

Ps-1 CTP:Bookkeeping: a process of recording is done on a regular basis to collect data and financial information include: assets, liabilities, capital, income and expenses, and the total acquisition price and the delivery of goods or services, which are covered with preparing financial statements such as balance sheet and income / losses in each fiscal year end balance sheet and profit / loss shall be attached to the delivery end of SPT (ps-4 paragraph (4) CTP.
According to the Fiscal Bookkeeping purpose: can be used to calculate the amount of taxes owed, it is primarily to convince the tax authorities when pemeksaan.
Sanctions for WP that do not keep books of account is the tax calculation will be done using the standard calculation of net income plus penalties and an increase of 50% less tax paid da (sanctions of article 13 paragraph (3) CTP). In addition, there are criminal sanctions for WP who willfully fails to keep books or the books of account were not correct causing loss to the State, in the form of imprisonment for a period of 6 years and a maximum fine of four times the amount that is paid less tax (Article 39 sanctions CTP) .
Ps-29 paragraph (3) and (4) CTP: CTP eliminates liability if WP embroidery secret agreement to keep confidential.

General Provisions and Accounting Taxation Procedures

General Provisions and Taxation Procedures:
 :
1. WP OP conducting business / professional services and WP Agency shall keep books in,
2. WP exempted da obligation to keep books referred to in paragraph (1), but shall keep records, WP OP is conducting business or independent, are allowed to calculate the net income using Net Income Deemed OP and WP are not conducting business or free work.
3. Books or records must be held with respect to good faith and reflect circumstances or actual business activities.
4. Bookkeeping / recording must be held in using Latin letters, Arabic numerals, the currency of dollars, and prepared in the language / foreign language permitted by Keu Men.
5. Accounting principles held by pnsip obedient and stelsel accrual / cash system.
6. Changes to accounting methods and / th book to be approved da DGT.
7. Bookkeeping at least paused on the record about the property, liabilities, capital, income and expenses, as well as sales and purchases so that it can be calculated the amount of tax payable.
8. Bookkeeping using foreign languages ​​and currencies other than dollars can be organized by the WP after obtaining permission Keu Men.
9. Registration as referred to in paragraph (2) paused on data collected on a regular basis of turnover or gross penemaan / gross income as the basis for calculating the amount of tax payable, including income taxes and non-object / subject to final tax.
10. Deleted.
11. Books, records and documents on which the books / records and other documents, including the data processing bookkeeping managed da electronic or on-line application program must be kept during the 10th on, the place of activity or residence or domicile OP WP WP Agency .
12. The form and manner of registration as referred to in paragraph (2) shall be regulated by or pursuant to Rule Financial Mente.


Explanation Ps-28, verses:
5. Pnsip abiding principle: pnsip same accounting method used in the previous years to prevent shifting Profit / Loss.
Pnsip abiding principle in the method of accounting for example in the application:
a. stelsel revenue recognition,
b. financial year,
c. inventory valuation method,
d. method of depreciation and amortization.

Stelsel Accrual: A method of calculating income and expense recognized in terms of income and expense is recognized when earned when due. So it does not depend on when it ditema income and expense when it is paid in cash.
Included in this definition is the recognition of income accrual stelsel by percentage of completion method commonly used in construction and other methods used in certain business sectors such as the built operate and transfer (BOT) and real estate.

Stelsel Cash: a method of calculation based on income ditema and costs paid in cash. In this case the income shall be considered as income when actually been ditema in cash in a certain peode and the cost shall be considered as a cost when actually been paid in cash in a certain peode.
Cash system is usually used by: small companies OP / enterprise services, eg transportation, entertainment, restaurants lag time between service delivery and payment penemaan not last long.

6. Basically accounting method adopted must obey principles, which should be the same as in previous years, for example in the use of income and expense recognition methods (method of cash / accrual method), the method of depreciation of fixed assets and inventory valuation methods.
Changes in accounting method is made possible by the following conditions:
DGT approval. Changes in accounting methods must be submitted to the DGT before dumulainya the relevant financial year by giving a logical reason and may ditema and the possible consequences da changes.

Not all costs can be deducted and gross income,

Not all costs can be deducted and gross income,
Tax distinguish:
a. Costs can be reduced and the gross income (expense deductible), (Article 6)
b. Costs can not be deducted from gross income da (non-deductible expense), (chapter 9).
c. Article 4 PP. 138 in 2000
Expenses and costs that are not deductible in calculating PhKP, including:
* The cost to acquire, maintain billing and income tax is not an object, subject to Income-Final, the norm calculation.
* Tax Article 21/23 are borne by the company except for income tax gross-up clause 26 which
* Losses da property or debts owned and not used in a business or activity to obtain, collect and preserve the income tax is the object.

Pnsip Accounting Income: bringing the cost of the deductible (ps-6) income (Article 4, paragraph 1).
Costs to earn income tax and the cost is not an object to obtain income not subject to final income tax deductible.

G.Konservatis
Accounting uses Pnsip conservatism, which recognizes such losses (unrealized) that can be predicted or estimated with an allowance, for example: the decline in value of marketable securities, accounts receivable losses, cut sales, sales returns, inventory valuation based on cost and market price whichever is lower.
Article 9 (1) c. PPh, should not form or cultivate the reserve fund, unless regulated by KMK No.681/KMK.04/1999):
* Reserve for bad debts of banks and SGU with option rights
* Reserve for insurance business
* Backup reclamation for mining

Not deductible da gross income is:
a. Receivables allowance for companies other than banks & SGU with option rights,
b. allowance for trade discount,
c. allowance for sales returns,
d. provision for impairment of securities,
e. inventory valuation based LOCOM.

Accrual basis and cash basis

Accrual basis and cash basis
 (5) , accounts held by stelsel accrual taxation or cash system.
Cash basis used in computing taxable income (PhKP) is a mixture of cash basis even close to the accrual basis.

Explanation  (5) :
a. Sale includes all sales of both cash and non-cash (credit), it is similar to accrual.
b. Cost of Goods Sold to be reckoned with all purchases (cash and credit) and inventories (beginning and end), it is similar to accrual.
c. Depreciable and rights that can be amortized, should not be deducted all at once but must be made through depreciation and amortization, it is similar to the accruals.
d. Article 6 of the Income-1984, in determining the cost of the deductible da gross income does not differentiate between cash basis and accrual basis.
e. Interest income of non-performing loans sourced da (substandard, doubtful and loss) are recognized as income when such interest ditema bank (with SFAS No.. 13 item 02)

D.Konsistensi
 paragraph (5) , accounts held by pnsip consistent (consistently),

 paragraph (6) ,  allows change accounting methods or accounting year provided that:
a. Submitted to the DGT before the start of the fiscal year concerned.
b. Delivering logical reasons and can ditema and the consequences that may arise.
c. DGT approval.

FRS 1 point 14, the change in accounting policy that affect mateal need diuangkapkan in the Financial Statements.

E. Fiscal Year
Fiscal year is a period of one calendar year (1 Janua till December 31), unless WP using the fiscal year is not the same as the calendar year.

Principles of Bookkeeping and Accounting Method

Principles of Bookkeeping and Accounting Method   (3) ; books or records must be held with respect to good faith and reflect circumstances or actual business activities.

   (4) , books or records should be held in by using Latin letters, Arabic numerals, the currency of dollars, and prepared in the language or in a foreign language is permitted by the Financial Mente.

   (7) , accounting for at least paused da record of assets, liabilities, capital, income and expenses, as well as sales and purchases, which can be calculated the amount of tax payable.

Explanation of  (7) :
Understanding accounting set out in Article 1 number 26,
Setting this verse so da bookkeeping can be calculated:
- The amount of income tax payable,
- Other taxes,
- VAT and VAT BM

VAT and VAT in order BM can be calculated correctly, then bookkeeping should be noted as well:
* The amount of cost / value of imports,
* The number of selling price / value of exports,
* The amount of the selling price of goods dikanakan da VAT BM,
* The amount of payment for the use of BKP and utilization, JKP da outside the customs area in the customs area,
* The amount of PM that can be credited and that can not be credited.

Obligations of accounting bookkeeping

Obligations of accounting bookkeeping

Obligations of accounting bookkeeping

Under paragraph 1, no. 28 th 2007 on the change in the upper third. No.6 1983 on kup, wp agency shall keep books on.

Article 1 point 29 ctp, accounting is a process of recording is done on a regular basis to collect data and financial information including assets, liabilities, capital, income and expenses, and the total acquisition price and the delivery of goods or services, which closed with the preparation of financial statements in the form balance sheet and income statement for the tax year peode.

Understanding bookkeeping according kup accounting sense synonymous with the process of recording, classifying, and presenting pengkasan certain way on financial transactions that occur in a company or other organization, and interpretation of the results.

Objectives of accounting is to calculate the net income of fiscal / tax loss.

Explanation of paragraph (7) ctp, bookkeeping can be based on statement of financial accounting standards (ifrss),

Bookkeeping by:

- gaap generally applicable and commercially produce financial statements (lkk)

- for the purposes of calculating net income in the fiscal / tax losses carried fiscal adjustment positive (negative).

Tax accounting is part da general accounting (general accounting), so wp does not need to make 2 (two) accounts, only 1 (one) books based on gaap then conducted a fiscal adjustment.

Core da accounting tax reconciliation is doing fiscal financial report as the basis for charging the annual income tax.

As per the principle of self-assessment, carried out by the wp fiscal adjustment, fiscal year 2002 from fiscal adjustments are included in appendix i-wp annual income tax agency.