Spanish Taxation Fundamentals and Key Concepts
Classified in Law & Jurisprudence
Written on in English with a size of 3.95 KB
Main Taxation Principles
(Based on Article 31.1 of the Spanish Constitution)
- Equality
- Economic Capacity
- Generality
- Proportionality (Own the same, pay the same)
- Progressivity (Earn more, higher percentage)
- No Confiscation (Not allowed to pay nearly all; 75% might be too much)
- Legal Reserve (Created by law)
Tax Authorities
(Article 5 of the Spanish General Tax Law)
Encompass all public authorities that:
- Levy taxes
- Impose penalties
- Interpret tax law
- Review tax issues in economic-administrative disputes
Important Concepts in Taxation
- Retroactivity Principle: Tax laws do not benefit from it.
- Analogy: Prohibited to extend terms of taxable events, exemption, or other benefits.
- Abuse or Conflict of Tax Law: Occurs when taxes have been avoided or tax liability reduced