The Spanish treasury has confirmed that the modular business tax payment system for small- and medium-sized enterprises (SMEs) will be frozen in 2004. Previously, SMEs that joined this system paid tax according to their actual profits.
The new system will comprise a fixed rate that is calculated as a function of factors such as the number of employees and the size of the premises. Only SMEs with revenue of less than Ђ450,000 are allowed to join the system.
Source: El Pais
