The tax agreement signed by the PSOE and Sumar barely 10 days ago was the main victim of the “in extremis” negotiations that the government has been carrying out since Monday evening to save the bill with which it transposes the directive which requires the establishment of a minimum business rate. for large groups and multinationals of 15%. The demands introduced by the minority partner of the Executive – some channeled into socialist amendments – have declined: the taxation of corporations will not be increased, nor the charges on private health insurance, luxury products, large inheritances or THE VAT on tourist apartments with the tax reform.
“We are not renouncing the tax on large inheritances, on luxury products, we want to remove these regressive exemptions from private health insurance and VAT on tourist apartments,” defended the economic director of Sumar, Carlos Martínafter verifying that the PSOE agreement with Podemos made it possible to approve the central package, from which its main demands had been excluded. The left-wing coalition highlighted all the measures which have contributed to improving the current system by increase taxation on tobacco or vaping liquid.
The frenetic negotiations carried out by the socialist group over the last three days, in which Minister Félix Bolaños played a key role in once again unlocking the support of the purple did not modify the essence of what was agreed at the Finance Commission at the beginning of the week, given that the PSOE concentrated its efforts to avoid a possible sanction from Brussels for exceeding the deadline for transposition of the aforementioned directive and block some of the tax increases planned in the structural adjustment plan sent to the European Commission a month ago.
How does corporate taxation work?
Listed Real Estate Investment Companies benefit from a special tax rate of 1% corporate tax in exchange for the distribution of 80% of their profits in dividends. This is a system introduced in Spain in 2009 and modified in 2012 in order to encourage the creation of these investment vehicles that focus their activity on the housing sector. The PSOE and Sumar want to end this special regulation Understanding that this did not contribute to improving access to housing, they agreed to subject them to the general tax of 25%. The minority partner affirmed that he was not waiving this claim, even if for the moment these entities will not bear any additional tax burden.
Tax on luxury goods drops
The party led by Yolanda Díaz had also promoted a “new tax on luxury goods”, i.e. luxury products such as luxury cars, jets or yachts, with the aim of improving equity in the distribution of income and wealth. It was another of the points negotiated with the PSOE, but the final text was not adopted either given the obvious reluctance of the PNV or Juntspartners who played a key role in saving the central package, while other parties like Podemos did not echo this demand.
There will be no new taxes on private insurance or an increase in VAT on tourist apartments
The Treasury advocated the removal of the tax exemption enjoyed by private insurance, to which it would begin to apply an insurance premium tax of 8% to enter 750 million euros per year. The sector’s employers’ association, Unespa, had warned that this measure would lead to an increase in the policy of more than 12 million users at a controversial time due to the conflict between the Ministry of Public Service led by Óscar López and insurers Muface.
The proposal to increase VAT on tourist apartments was also not included, the initiative promoted by the government, at the initiative of Bildu and the republican leftto the Finance Commission. A point which also constitutes a priority for Sumar, who does not exclude returning to this demand later (perhaps during the negotiation of budgets).
