In Latin it is where we can say that the etymological origin of the term pro-rata is found. Specifically, it derives from the expression "pro rata parte", which means "according to the calculated part" and is composed of three differentiated elements:
-The prefix "pro-", which can be translated as "forward or agree".
-The disinfection in ablative "rat", which derives from the verb "reor" and is equivalent to "calculated".
-The word "part," which is synonymous with "part."
The pro rata is the Proportional part that corresponds to someone when the distribution of something in relative portions and linked to certain calculations . These proportions indicate what percentage of a total You must receive or pay each subject.
Take the case of a commercial company that has four shareholders, each with different percentages. This means that the property of said society It is distributed in different ways among the four people. At the time of distributing the profits at the close of a financial year, the shareholders will receive their pro rata according to the amount of titles they hold of the company.
He apportionment It also applies in the case of losses. If the result of the exercise is negative , the pro rata will not be profits to be distributed among the shareholders, but the losses that each of them must assume to balance the accounts.
To all this we must add that the term pro-rata is also used within what is the work environment. In this case it is used as a pro rata for extra payments, which is the method that some companies use to pay the extra payments of June and December to their employees not in those months but in a proportional way throughout the year.
The notion of pro-rata appears, on the other hand, in the field of insurance . In certain situations, there may be a difference between the insured value and the sum insured, which is lower. In this way, the insured company will be responsible for compensating the damage in the resulting percentage between the two values. This proportion is the pro rata.
In countries as Spain , there is the pro rata of Value Added Tax (VAT) . If an autonomous worker develops economic activities with different types of VAT and one of these activities is exempt from this tax, you can apply a pro rata and deduct a certain percentage of the tax.
In this case, it becomes important to know a series of relevant aspects about the aforementioned pro-rata. Specifically, it can be of two types: general, which applies to all purchases of goods and service, and specific. The latter must be stressed that it is established that it is mandatory at the time that there is a difference of 20 points or more with respect to the general one. It is also noteworthy that it requires that the operations carried out in three different groups be separated: those deductible only in one part, those that are deductible in their entirety or those that cannot be deducted.