• Register
Return to: Home > News > Tax > Fee pressure strikes firms in Spain

Fee pressure strikes firms in Spain

New tax and accounting rules in Spain have come at the worse possible moment, according to the International Accounting Bulletin’s Spain survey (see Spain survey:Firms prepare for challenges ahead).

Firms are experiencing increased workloads as clients comply with a new General Accounting Plan (Plan General Contable – PGC) introduced in January last year and new related party tax rules introduced in February this year. However, clients are in survival mode and resisting fee increases.

Fee income from UHY Fay & Co’s audit and consulting business remained static in the past year, while it should have grown.

“We have been trying to collect more fees thanks to [the PGC] because it requires a lot more advice to clients,” managing partner Bernard Fay said. “But the funny situation is that clients are not accepting increases in fees right now. They want to include everything in whatever has already been agreed.”

The PGC takes Spanish accounting standards for non-listed companies a step closer to IFRS and companies need to upgrade accounting processes and train staff.

Moore Stephens Hispania international liaison partner Jorge Blanquer said work is flowing from both the PGC and new related party tax rules, but the timing is unfortunate.

“If you are an entrepreneur/owner of a company, the main point now is to survive and accounting and bookkeeping stuff is secondary,” he said.

The implementation of new regulation is made more difficult because some accounting rules are still being developed by regulators. Many points are unclear and new interpretations are arriving from regulators almost daily, Blanquer said.

The benefits of the PGC on BDO Audiberia Auditores’s bottom line have also been tempered by fee pressure but the firm’s president, Alfonso Osorio Iturmendi, said fee pressure is good for BDO.

“Our cost structure, personal costs and general costs are lower than all the larger groups, so we are in a very good position to be more competitive than the rest of our competitors in the market,” he said. “In many cases we have to reduce our fees to be competitive in the market. But generally speaking I think it is a very good opportunity for a firm like BDO.”

Top Content

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.