With the aim of understand the microscopic origin of the magneto-optical response in the Fe ultrathin films, we used the first principle full-relativistic Spin-Polarized Relativistic Linear Muffin-Tin Orbitals with Atomic Sphere Approximation. We performed an ab-initio study of the structural, magnetic and magneto-optical properties of Fe deposited on semi-infinite Au(001). The structure and growth of the film leads to a pseudomorphic body centered tetragonal structure with tetragonality ratio c/a=1.62, and the pseudomorphic growth is found to be larger than 3 monolayers. The magnetic study revealed a ferromagnetic phase with a large magnetic moment compared to the bulk one. The magneto-optical response is calculated via the polar magneto-optical Kerr effect over a photon energy range up to 10eV. The most important features of the Kerr rotation spectra are interpreted trough the interband transitions between localized states.