Approval of the new General Accounting Plan for Small and Medium-sized Companies (PYMES)

6 February 2008

On November 21, 2007, the Official State Gazette published Royal Decree 1515/2007 dated November 16, which approved the new General Accounting Plan for Small and Medium-sized Companies or PYMES.

The new General Accounting Plan, which will go into effect as of January 1, 2008, will apply to the fiscal years commencing after January 1, 2008 and to all companies, regardless of their legal status – individual or company- that opt for this regime and meet at least two of the following requirements at the end of each fiscal year for at least two consecutive fiscal years:

a) Total asset items must not exceed two million eight hundred and fifty thousand Euros.

b) Net amount of business revenue cannot exceed five million seven hundred thousand Euros.

c) Average number of employees during the fiscal year cannot exceed fifty.

Once a PYME opts for the new PYME General Accounting Plan, they must follow this plan for a minimum of three consecutive fiscal years unless the company is otherwise obligated to adhere to the General Accounting Plan.

For further information, please contact Victor Manzanares Saínz:[email protected]