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Tax for the Self Employed

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Tax for the Self Employed

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Old Mar 28th 2007 | 6:42 pm
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Default Tax for the Self Employed

Tis me (again!),
Seeing as I shall be resident and shall be paying taxes as an autonimo, can someone please give me an idea how the "modulos" amounts are calculated?
As always, thanking those in advance, Jonathan
 
Old Mar 28th 2007 | 7:39 pm
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Default Re: Tax for the Self Employed

Unless you are going to be earning vast sums of money or, alternatively, running a bar you may be well advised to steer clear of módulos. Check it out with an asesor fiscal.
 
Old Mar 28th 2007 | 9:02 pm
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Default Re: Tax for the Self Employed

Originally Posted by littlelambfound
Tis me (again!),
Seeing as I shall be resident and shall be paying taxes as an autonimo, can someone please give me an idea how the "modulos" amounts are calculated?
As always, thanking those in advance, Jonathan

Which modulos are you referring to? There are many.
 
Old Mar 28th 2007 | 9:27 pm
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Default Re: Tax for the Self Employed

Thankyou for the prompt replies.
Beachcomber: I'm not sure what might qualify as "vast amounts"....is over 150,000 Euros/p/year vast? Many many moons ago I did infact have a bar/restaurant in Barcalona, paid modulos, but I can't for the life of me remember how the thing was calculated.
Keith: Errrr....I didn't realize there are many. I have on-line businesses that pay directly into my (Hungarian) bank account. And I know that I shall have to speak with a professional accountant once there, but am just trying to establish some ball-park figures so as to minimise any finacial surprises that might jump out of the paella and poke me in the eye!
 
Old Mar 28th 2007 | 9:54 pm
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Default Re: Tax for the Self Employed

there are many modulos - and it depends on what you are earning - what your job is - where you live - how much you earn - if you have people working for you............. it goes on and on

speak to a gestor would be the best advice

(going through the same thing myself at the moment - and its giving me a headache I can tell you - but Im sure after a few months it will all become clearer )
 
Old Mar 28th 2007 | 10:36 pm
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Default Re: Tax for the Self Employed

It never becomes clearer. I've been self-employed here for 4 years now and I still have no idea how much I'll pay every 3 months..

Then again, I'm a designer. If I understood the tax system and all that I would would probably have become an accountant.

t0rie
 
Old Mar 28th 2007 | 10:45 pm
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Default Re: Tax for the Self Employed

Originally Posted by torie
It never becomes clearer. I've been self-employed here for 4 years now and I still have no idea how much I'll pay every 3 months..

Then again, I'm a designer. If I understood the tax system and all that I would would probably have become an accountant.

t0rie
oh now thats a worry thought I would be able to get my head around it all in time

I have tried to break it down to simple terms as in earnings, IVA charged - IVA paid, then pay a certain (perhaps set) amount each month so that at the end of the year it all balances out so I dont get a big bill (which happened before)

hhhhmmmmmmmm
 
Old Mar 28th 2007 | 10:51 pm
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Default Re: Tax for the Self Employed

Originally Posted by littlelambfound
Thankyou for the prompt replies.
Beachcomber: I'm not sure what might qualify as "vast amounts"....is over 150,000 Euros/p/year vast?
more than 150,000 euros a year, is that all, Phffft, pocket money
 
Old Mar 28th 2007 | 10:58 pm
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Default Re: Tax for the Self Employed

Originally Posted by SmartiesUK
more than 150,000 euros a year, is that all, Phffft, pocket money
the gestor I spoke to said I can earn up to 450,000 - so I think I should just scrap in there

 
Old Mar 28th 2007 | 11:01 pm
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Default Re: Tax for the Self Employed

t0rie, Have you not yet paid anything? In 4 years!
PS From your blog, your view seems to be in a constant state of flux.
SmartiesUK: Oh dear, you mention pocket money and then I note that your little byline mentions pockets.
 
Old Mar 29th 2007 | 12:45 am
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Default Re: Tax for the Self Employed

Originally Posted by littlelambfound
t0rie, Have you not yet paid anything? In 4 years!
PS From your blog, your view seems to be in a constant state of flux.
SmartiesUK: Oh dear, you mention pocket money and then I note that your little byline mentions pockets.
Oh I HAVE paid! It's just that I never know what I'll pay until I pay it.. If you get my drift. Stupid english verb tenses. I've finally gotten my head around catalan verb tenses and now I'm getting confused with english. Argh.

And it's probably not complicated, the whole taxes thing, it's just that I'm not one for accounting.

View in a constant state of flux..? Yea, I go through my ideas and just jot them down. Can't say they'll be the same the following week, but heyho - that's life!
 
Old Mar 30th 2007 | 1:24 am
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Default Re: Tax for the Self Employed

Hi, there is a web site you can go to that gives pretty good explanations. It is the national site for the social payments.
www.seg-social.es
the site is in english which makes things easier. A lot depends on whether you pay in for pension receipt, whether you want disability benefit etc as an autonomous (self employed). The average payment at 29.6% is 249.60 euros per month or without disability payment 26.5% is 221.96 euros per month.
It also gives details of all the modulos and their types. You will need an accountant (and these aint cheap either) and these generally charge per month.
Hope some of this helps.
 
Old Mar 30th 2007 | 4:00 am
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Default Re: Tax for the Self Employed

Thanks for the link helen I will put it in the Free Beer sticky thread for future reference. ;-)
 
Old Mar 31st 2007 | 9:37 pm
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Default Re: Tax for the Self Employed

Hello littlelambfound,

The tax method you are referring to is known as Estimacion Directa por Modulos.

It's a method whereby Hacienda estimate your profits subject to certain criteria.

The profits estimated have nothing to do with the real profit. For example 2 bars with 100m2, with the same bar length, and same number of tables pay Hacienda the same amount of tax, even though one bar is empty and the other is always full of people.

Hacienda offers this tax method so that smaller businesses don't have worry about accounting, or working out their taxes, in exchange this businesses pay a higher rate of tax. Under modulos you will normally pay more in taxes than you would otherwise. There is however another side. If according to your modulo you earn 150,000€ but in reality earn 1,000,000€ you only pay for the 150,000€ estimated by Hacienda, the rest is yours.

Be aware however that not every type of business can declare under Estimacion Directa por Modulos.
 
Old Mar 31st 2007 | 9:41 pm
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Default Re: Tax for the Self Employed

Originally Posted by jdr
Thanks for the link helen I will put it in the Free Beer sticky thread for future reference. ;-)
Grrrrrrrr!
 


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