Business Taxation and Commercial Document Standards

Key Taxes on Economic Activities

• Tax on Economic Activities: This is a direct tax managed by municipalities, charged on the development of business activities.
• Value-Added Tax (VAT): A form of indirect tax levied on domestic consumption, intra-Community acquisitions, and imports of goods.
• Personal Income Tax: A direct tax levied on the personal and global revenue derived by each individual.
• Corporation Tax: A levy of a direct and personal nature charged on corporate income and other legal entities.
• Other Taxes: These include tax on capital transfers and documented legal acts, real estate tax, tax on motor vehicles, tax on the increased value of urban assets, and municipal taxes.

The Company's Administrative Function

The company's administrative function is the set of activities required to achieve the optimum performance of the business organization, which takes place in two areas: strategic and management.

Conditions for an Efficient Administrative Process

• Opportunity: The process must run at the right time.
• Economy: It must be at the lowest cost.
• Safety: Security in the information generated within the company.
• Utility: The process must provide practical value.

Commercial Contracts and Orders

Sales Contract: The sale of movables for resale, either in the same way they were purchased or modified in a different way.

The Order: This is the request for goods which the buyer makes to the seller under previously agreed conditions. The buyer does not respond to a specific form; it is born of a pact.

Essential Commercial Documentation

• The Waybill: This is the document issued by the seller that relates the goods sent on a predetermined order. It is made in writing.
• The Invoice: A document issued by the seller to the buyer that legally certifies the sale of goods. Its form is written and it is governed by law.
• Check: The delivery of a document that allows the seller to collect an amount from a given bank.
• Transfer and Bank Deposit: Methods of moving funds between accounts.
• Promissory Note: A credit document that contains the promise of the debtor to pay an amount on a given date.
• The Receipt: A document which states that a person has received money from another. It is usually given when the purchase is settled in several installments.

Types of Checks and Financial Instruments

• The Check: A commercial document by which a bank or credit institution undertakes to pay a certain amount by order from one of its customers.
• Certified Check: The bank guarantees the authenticity of the signature of the drawer and the availability of funds.
• Crossed Check: A check with this system can only be paid into an account by the beneficiary.
• Nominative: A document cast for a particular person.
• Bearer: No specific person is named; anyone may collect it.
• The Bill of Exchange: A commercial document by which a person instructs another to pay a certain amount of money on a specific date or with a specific maturity.