Special Requirements
TAX RESPONSIBILITY IN THE EXECUTION OF WORKS AND SERVICES
After the new General Tax Law came into force last July 1st, significant novelties are introduced regarding "tax responsibility" that significantly affect both Schneider Electric and its suppliers. The figure called"subsidiary responsibility"is created (art.43.1)
Who does it affect?
The people or entities that contract or subcontract theexecution of works or provision of services corresponding to their main economic activity.
Scope of the responsibility
The responsibility reachesthe taxes that must be passed on or the quantities that must be retained to the workers, professionals or other businessmen, in the part corresponding to the works or services subject of the contracting or subcontracting.
Limit of the subsidiary responsibility
- Responsibility will not be demanded when the contractor or subcontractor have given to the payer a Specific Certificate stating he is up to date with his tax obligations issued for this purpose by the Tax Administration during the twelve months previous to the payment of each invoice corresponding to the contracting or subcontracting.
- Responsibility will be limited to the amount of the payments made without having provided the contractor or subcontractor to the payer the mentioned Certificate, or after a twelve months' period has passed since the previous Certificate without having renewed it.
Request of tax certificate
In this sense, we have prepared a circular of tax certificate request that will have to be sent to each contractor or subcontractor in the above mentioned cases.
Internet options...
