TAX

Real Estate Tax (IBI)

IBI’s case studies

IBI is a tax linked to the cadastral valuation carried out by a technician of the Cadastral Management Office. Over the years, a property may undergo changes in its use that can lead to a wrong valuation in line with its new use.
From Passage, we seek these mistakes that optimize the Real Estate Tax for companies: We review the Real Estate Tax generating a saving on the indefinite tribute.

We review the property, evaluate the use and typology of the spaces, adapting them to the reality of the property.

Additionally, we seek the maximum update on jurisprudential, urbanistic and technical changes.

Refund of undue income due to overpayment of IBI

Once the amount of the future Real Estate Tax is settled, we also get the refund of undue income for the period not prescribed. Last 4 years.

Business Tax (IAE)

IAE’s case studies

It is a self-assessment tax levied on the mere economic activity of companies or group of companies with a turnover of more than 1 million euros.

From Passage, we seek to optimize this tax by adapting the tax elements, mainly nominal kilowatts and surface area (square meters), to the business reality.

We seek the most current tax application and compliance through the identification, application and/or presentation of Binding Consultations before the Public Tax Authority or favourable rulings on this matter.

Additionally, we seek the maximum update on jurisprudential, doctrinal, tax and technical changes on this matter.

Support in Business Tax inspections:

Business Tax is a complex and interpretative tax depending on the inspection process so, in case of inspections, from Passage, we consider that a proper advice is essential.

Possible reasons for an inspection:

• Outdated tax elements (calculation of surfaces, taxable power…).
• Wrong classification or not registering on secondary activities of obligatory taxation.

Consequences of an inspection:

• Fine between 50% and 100% of the tax that is not paid (art. 192 of the Spanish General Tax Law).
• Internal expenses of assistance to the inspection.
• Settlement of late payment interest.
• Settlement of undeclared taxes in the last four years.

Tax on Constructions, Installations and Works

This tax is levied on any construction, installation or work that requires obtaining the corresponding construction or urban planning license, whether or not such license has been granted.

From Passage we seek to review the budget items presented both at the time of accrual (at the beginning of the work) and when presenting the final budget. We look for the differences between the project presented and the one that is actually executed, presenting to the city council the exact budget items and adjusted to the Regulations and Regulatory Ordinance in force, reducing -and, if necessary, requesting the refund of undue income- the liquidation made.

Tax on the Increase in the Value of Urban Pan (Municipal capital gains)

This tax is levied on the increase in the value of urban land, whether or not there is construction on it.

As a result of a sale or transfer of a property, the Tax on the Increase in the Value of Urban Plan -Municipal capital gains- becomes due. This tax is levied on the value of the property as registered in the land registry at the tame of the sale or transfer, not its real value.

From Passage we propose a review of the cadastral valuation of the land, through a technical analysis that measures the surface area and details the coefficients applied, in order to reduce the initial liquidation, presenting a procedure for the refund of undue income.