What kinds of State Tax Options You name Make Use Of

The most common division of tax types tends to classify them between direct and indirect taxes depending on their nature and the fact that they are taxed. However, it is also possible to differentiate between state taxes and municipal taxes depending on which administration is in charge of their management and collection. The use of State tax calculator comes essential in this matter.

Thus, the state taxes would be those that fall on the central administration, which in some cases can determine its transfer to the autonomous communities. These may even have the power to make variations to adjust it to the characteristics of the region. These are the general state taxes:

Personal Income Tax (IRPF): it is known as the income statement and, as its name indicates, it taxes the obtaining of income by natural persons during a period that coincides with the natural year.

Corporation Tax:  the equivalent to personal income tax but applied this time on companies, which must also pay taxes on the profits they obtain from their activity.

Special Taxes: they bring together a large amalgam of taxes that are used to tax certain goods beyond VAT, which is applied to all. The Tax on alcohol and derived beverages, the Beer Tax, the Oil Tax, the Tobacco Tax, the Electricity Tax and the Tax on certain means of transportation fall into this category.

Insurance Premium Tax: this tax is applied to insurance and capitalization operations carried out by insurance companies in Spain.

To these state taxes must be added those managed by each autonomous community and on which it can make different modifications.

Wealth Tax: it is a direct tax that is taxpayers’ possessions for the mere fact of possessing them

Tax on Patrimonial Transmissions and Documented Legal Acts: better known as ITPAJD. It taxes all operations where there is some type of transfer of assets or property between individuals, as well as the sale of land and farms. The documentary part taxes the formalization of certain notarial, commercial and administrative documents.

  • Gambling Tax: Taxes the winnings that come from gambling.
  • Inheritance and Donation Tax: it taxes the money that is obtained free of charge and that supposes a patrimonial increase. It is applied to inheritances and donations.
  • Special Tax on Certain Means of Transport: it is known as a registration tax that is levied on the first registration of a car in Spain.
  • Tax on Retail Sales of Certain Hydrocarbons: it is applied to sales to the public of hydrocarbons in places such as gas station and suppliers from refineries.