Self Employed Business tax help if you can

Oct 12, 2006 · Nullguide · 5 replies · 3248 views

Read-only legacy forum thread. Sign-in, registration, and replies are retired.

I know it is a complicated matter but I need a few basic % figures to finish a basic business plan.

I am looking at buying a business in spain that is a current going concern with my wife and 2 children and have most of the figures, gross profit (after stock) excluding all else
and current Social security figures, community charges etc.

What I have been trying to work out the past couple of days is what can I deduct from the Gross profits before calculating any tax's and which Tax's are payaple as a self employed business.

Would repaying an Investor be deductable?
Would putting by for the renewable Lease be a tax deduction?
Would I have to pay Income tax and Business Tax? or only one.

example:

Gross profits pa 126,000 Euros
Running costs pa (utilities etc) 3,500 Euros
Rent pa (incl 16% iva) 24,360 Euros
Lease (saving)pa 9,500 Euros (10 year renewable)

I am not looking for someone to do all the calcs for me, just some help with what tax's are payable % wise and after which deductions.

Insidently we would be renting accomodation for a while so I am not sure if this is also Tax deductable.

I have done Alot of reading and searching just seems to be deciding with Tax would be aplicable and the percentages that has me stuck.

Any and all help greatly apreciated.

Thank you!

Oct 12, 2006 · Nullguide

Sorry for posting here, unable to post in the financial section. Keeps comming up with Error cannot submit at this time.

Oct 15, 2006 · Expatriator

Hi Nullguide,
I moved your post to the financial section. Not sure why you were having a problem though.

Good questions, I'd be interested to know the answers too. Sorry I can't help more myself.

Oct 16, 2006 · Nullguide

hiya, thanks for moving the post for me.

Nov 13, 2006 · SpainExpat member

Sorry, its a bit of a side issue, but 3 million years ago when I was studying business and accountancy at University we were always taught that the financial section of any business plan should only take you to figures before taxation. Primarily this was because Tax is very much out of your hands as a start up company (it can be less so for large companies) and subject to countless factors some distance away from the operation of the business (eg state subsidies for some new staff or temporary right-offs for tangible goods investment such as IT equipment) which IS what you are planning. Furthermore, if you are dependent on low tax to save the business at outset you should probably revise the plan.

I hope it helps a bit!