Ten key points of the same:
1 - VAT will not have to be be paid until the invoice is cashed: beginning January 1, 2014 small businesses will not have to pay VAT on the invoices until the final charge. This tax benefit applies to SMEs and freelancers who are not subject to modules and with a volume of less than 2 million euros. This will have some limitations: employers must pay VAT each year (no later than December 31) even if final charge has not been paid to them. According to the Government, this new system will benefit 1.3 million self-employed and a 1 million SMEs.
2 - Tax advantages to encourage reinvestment . Companies with business of less than 10 million euros, startups and companies that are part of a larger group of companies shall be entitled to a deduction of 10% in Company Tax on reinvested earnings. The investment must be made within the fiscal year in which the benefits are obtained and the two subsequent years. 180,000 enterprises could be benefited by this measure.
3 - Incentives for partners of start-ups The new law includes grants to invest in new businesses. Taxpayers may deduct 20% of the amount destinated to subscribtion of shares in SMEs and investments in start-ups. The maximum deduction base will be 20,000 euros per year .
4 -Lower social security rates for multiemployees and those freelancers who are committed to multiple activities.
5 - Easeness for refinancing agreements.
6 - Limited liability for debts of Entrepreneurs, who will never answer to the debts with his residence, provided the value of the property does not exceed € 300,000.
7 - A second chance to revive businesses. A new mechanism that will secure agreement between the creditors to negotiate a payment plan with a moratorium of up to 3 years.
8 - Cheaper initial costs for SL. A new concept is created: Company of sucessive setting, which aims to lower the initial cost of starting a business. There are limits and obligations to strengthen its capital base and encourage these companies to grow. It hardens the duty of manning the legal reserve (which should always be provided by 20% of income) and prohibits the distribution of benefits until the company reaches the minimum capital requirement for limited liability companies. It limits the annual compensation of officers and members, which may not exceed 20% of net assets.
9 - Less bureaucracy and more flexibility in order to reduce and simplify the paperwork. Emprende 3 project, will launch a telematic way to set up companies with standard forms and using new technologies and collaboration between governments ( State, regional and local authorities).
10 - New ways of financing to facilitate the creditworthiness of small and medium companies.
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A street in Torre Alháquime, Cádiz, Southwest of Spain