Spain – Muhasebe News

Spain’s trade deficit shrinks in January

MuhasebeNews — Fri, 17 Mar 2023 06:54:57 +0000

Spain’s trade imbalance decreased from EUR 6.52 billion in January 2022 to EUR 3.96 billion in January 2023 as a result of a 16.2% increase in exports driven by higher sales of capital goods, chemicals, energy products, and food, beverages, and tobacco. (15.9 percent). Exports were primarily up to the EU (18.8%), the US (19.8%), and Morocco among the main trading partners. (18.3 percent). Meanwhile, imports advanced at a slower 5.3 percent, as increases in purchases of capital goods (20.7 percent), food, beverages and tobacco (20.1 percent), energy products (8.1 percent) and vehicles (15.4 percent) offset declines in imports of both chemicals (-13.7 percent) and non-chemical semi-manufactures (-15.1 percent). Imports rose from the EU (8.9 percent) and China (9.5 percent), but fell from the US (-11.5 percent) and Turkey (-22.6 percent).

Source: Trading Economics
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Inflation in Spain Increases to 5.9% Amid Higher Food Prices

MuhasebeNews — Thu, 16 Feb 2023 07:26:13 +0000

The Consumer Price Index (CPI) annual rate in Spain decreased, for the third consecutive month, to 8.4% in January 2023 (9.6% in December 2022). The annual core inflation rate, which excludes energy and unprocessed food products, was 7.0% (7.3% in the previous month). The main contribution to the deceleration of the CPI was given by the index for energy products, where the respective annual rate of change is estimated to have decreased, also for the third consecutive month, to 7.1% (20.8% in December), mainly due to the decrease in prices of electricity. On the opposite side, the estimated rate for unprocessed food increased to 18.5% (17.6% in the previous month).

The CPI monthly rate was -0.8% (-0.3% in December 2022 and 0.3% in January 2022), while the CPI 12-month average rate was 8.2% (7.8% in the previous month).

In January 2023, the Portuguese Harmonised Index of Consumer Prices (HICP) annual rate was 8.6% (9.8% in the previous month). This rate is 0.1 percentage points (p.p.) above the figure estimated by Eurostat for the Euro area (in December, this difference was 0.6 p.p.). Excluding energy and unprocessed food products, the Portuguese HICP decreased to 7.8% in January (8.0% in December), above the corresponding rate for the Euro area (estimated at 7.0%).

Source: Instituto Nacional de Estatística INE
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Turkey as A Net Exporter in Steel Again!

MuhasebeNews — Tue, 10 Oct 2017 07:00:47 +0000

In 2016, 16.5 million tons of steel was exported from Turkey. Turkey’s steel exports in 2016 increased by 2.4 percent in volume compared to the previous year.

Turkish steel industry also maintained its upward momentum in the first months of 2017. Turkey’s total exports in the first two months of 2017 amounted to 3.3 million tons, reaching a value of 2.1 billion US Dollars. The Middle East continued to be the largest export market for the steel industry with 5.3 million tons.

The countries where the steel industry experienced the highest increase in exports on yearly basis in terms of quantity were Yemen, Israel, Spain, Egypt and the Netherlands. In 2016, the most exported steel products were 7 million tons of construction steel, 2 million tons of flat hot, 1.8 million tons of welded pipes and 1.5 million tons of profiles.

Source: Ministry of Economy

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Euro Area Unemployment at 9.5%

MuhasebeNews — Fri, 05 May 2017 15:08:29 +0000

The euro area (EA19) seasonally-adjusted unemployment rate was 9.5% in March 2017, stable compared to February 2017 and down from 10.2% in March 2016. This is the lowest rate recorded in the euro area since April 2009.

The EU28 unemployment rate was 8.0% in March 2017, down from 8.1% in February 2017 and from 8.7% in March 2016. This remains the lowest rate recorded in the EU28 since January 2009. These figures are published by Eurostat, the statistical office of the European Union.

Among the Member States, the lowest unemployment rates in March 2017 were recorded in the Czech Republic (3.2%), Germany (3.9%) and Malta (4.1%). The highest unemployment rates were observed in Greece (23.5% in January 2017) and Spain (18.2%).

Source: Eurostat

The World’s Billionaires List 2017

MuhasebeNews — Wed, 05 Apr 2017 07:03:11 +0000

The World’s Billionaires list 2017 has been publish. In the list, Bill Gates takes the lead with Microsoft and he is followed by Warren Buffet and Jeff Bezos respectively. Surprisinglyi Mark Zuckerberg ,founder of Facebook, is placed on the fifth place.

Name Source Country

1.Bill Gates Microsoft USA

2.Warren Buffet Berkshire Hathaway USA

3.Jeff Bezos Amazon.com USA

4.Amancio Ortega Zara Spain

5.Mark Zuckerberg Facebook USA

6.Carlos Slim Helu Telecom Mexico

7.Larry Ellison Software USA

8.Charles Koch Diversified USA

9.David Koch Diversified USA

10.Michael Bloomberg Bloomberg LP USA

Source: Forbes

Minimum Wages in the Other Countries

MuhasebeNews — Mon, 20 Mar 2017 12:51:20 +0000

Introduction
The amount of minimum wages for the next year is determined in the meeting made in December being the last month of the previous year.

The institution which determines the amount of minimum wage is titled “Minimum Wage Determination Commission”.

Members of the Commission are listed below:
– 5 people – Representatives on behalf of the Government
– 5 people – Representatives from Turkish Company Union (on behalf of workers)
– 5 people – Turkey’s Employers’ Association

The amount of minimum wage in 2017 is supposed to be declared before the year ends.

1- What were the Amounts of Minimum Wages in Turkey for the Last Years?
The gross amounts of Minimum wages for 13 years between 2005 and 2017 are shown in the table below.

In the last column of the table, one may see the increase rate of minimum wages in comparison with the previous year.

The increase rate of minimum wage in 2016 is higher compared to the previous years. As minimum living allowance was included in minimum wage. In the previous years, minimum living allowance was not included in minimum wage.

2- How much is the Minimum Wage in 2016?
Minimum wage in 2016 including minimum living allowance;
Gross:                              1.647,00 TL
Net:                                 1.176,47 TL
Minimum Living Allowance: 123,53 TL (minimum)
Net Paid:                          1.300,00 TL (including minimum living allowance)

3- How much is the Minimum Wage in 2017?
The gross amount of minimum wage in 2017 is 1.777,50 TL and the minimum amount for an employee is 1.404,06 TL including minimum living allowance. Minimum living allowance is included in that amount. There will not be added minimum living allowance to the expounded amount.

Minimum wage in 2017 including minimum living allowance;
Gross:                              1.777,50 TL
Net:                                 1.270,75 TL
Minimum Living Allowance: 133,31 TL (minimum)
Net paid:                          1.404,06 TL (including minimum living allowance)

4- Where Would You Like to Live?
If minimum wage is taken into consideration while giving an answer to this question, the answer will be Luxembourg, the Netherlands, Australia or Belgium. For those countries have the maximum amount of minimum wage, according to Organization for Economic Co-operation and Development. Below, one may find the amount of annual minimum wages of some countries in the World in line with the data given by Organization for Economic Co-operation and Development. Turkey ranks number 20 in the list.

Date: 20 March 2017

Investment Legislation

MuhasebeNews — Mon, 13 Mar 2017 13:39:08 +0000

Turkey’s investment legislation is simple and complies with international standards, while it offers equal treatment for all investors. The backbone of the investment legislation is made up of the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investments Law No. 4875, the Regulation on the Implementation of the Foreign Direct Investment Law, multilateral and bilateral investment treaties and various laws and related sub-regulations on the promotion of sectorial investments.

Legal Framework of Foreign Direct Investment
1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

to encourage FDI in the country
to protect the rights of investors
to align the definitions of an investor and investment with international standards
to establish a notification-based system rather than an approval-based one for FDI
to increase the volume of FDI through streamlined policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as;

freedom to invest,
national treatment,
expropriation and nationalization,
freedom of transfer,
national and international arbitration and alternative dispute settlement methods,
valuation of non-cash capital,
employment of foreign personnel,
liaison offices.

The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

to regulate the work carried out by foreigners
to stipulate the provisions and rules on work permits given to foreigners
2. Bilateral Agreements
2.a. Bilateral Agreements for the Promotion and Protection of Investments
Bilateral Agreements for the Promotion and Protection of Investments were signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. The basic aim of bilateral investment agreements is to establish a favorable environment for economic cooperation between the contracting parties by defining standards of treatment for investors and their investments within the boundaries of the countries concerned. The aim of these agreements is to increase the flow of capital between the contracting parties, while ensuring a stable investment environment. In addition, by having provisions on international arbitration, they aim to prescribe ways to successfully settle disputes that might occur among investors and the host state. Turkey has signed Bilateral Investment Treaties with 94 countries. However, Turkey is a dualist country, where an international treaty has to be ratified and promulgated in order to become part of the national legal system. Within this regard, 75 Bilateral Investment Treaties out of these 94 have gone into effect so far.

75 countries
Afghanistan, Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium-Luxembourg, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Ministry of Economy

2. b. Double Taxation Prevention Treaties
Turkey has signed Double Taxation Prevention Treaties with 80 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

80 countries
Albania, Algeria, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Revenue Administration

Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis.

2. c. Social Security Agreements
Turkey has signed Social Security Agreements with 26 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI.

26 countries
Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Croatia, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Netherlands, Norway, Romania, Slovakia, Serbia, South Korea, Sweden, Switzerland, Turkish Republic of Northern Cyprus, United Kingdom
Source: Social Security Institution (SSI)

3. Customs Union and Free Trade Agreements (FTA)
A Customs Union Agreement between Turkey and the European Union has been in effect since 1996. The agreement allows trade between Turkey and the EU countries without any customs restrictions. The EU-Turkey Customs Union is one of the steps toward full Turkish membership of the EU itself.

Turkey has FTAs with 37 countries, creating a free trade area in which the countries agree to eliminate tariffs, quotas and preferences on most goods and services traded between them. This framework explains why many global companies are now using Turkey as a second supply source and manufacturing base, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively low-cost but well-educated labor force, coupled with cost-effective transportation.

37 countries
Albania, Bosnia and Herzegovina, Egypt, Georgia, EFTA, Israel, South Korea, Macedonia, Morocco, Malaysia, Mauritius, Palestine, Jordan, Syria*, Tunisia, Montenegro, Serbia, Chile
Countries that have finalized the negotiation process: Faroe Islands, Ghana, Kosovo, Lebanon, Moldova, Singapore
Countries in the negotiation process: Democratic Republic of the Congo, Cameroon, Colombia, Ecuador, Gulf Cooperation Council, Japan, Libya, Mexico, Mercosur, Peru, Seychelles, Ukraine *suspended
Source: Ministry of Economy

Date: 13 March 2017