Companies by economic activity heading: IAE

It is a tax of municipal ownership, periodic and mandatory in all municipalities, which taxes the performance of any type of economic activity. The taxable event is constituted by the mere exercise of economic activities (understood as the carrying out of business, professional or artistic activities when it involves the self-organization of means of production and human resources or one of both, in order to intervene in the production or distribution of goods for services, thus leaving out the dependent employment relationships between a person who works) in national territory. After the establishment of various exemptions in the IAE, legal persons and entities referred to in Article 35.4 of the General Tax Law (remaining assets, communities of property, civil societies, etc.) that carry out economic activities in the national territory are obliged to pay this tax, provided that the net amount of turnover exceeds the amount of 1,000,000 euros. Natural persons are exempt. The IAE is paid in the municipality where the activity takes place This portal only details statistics of those obliged to pay this tax and managed by the Madrid City Council.