SMEs take center stage in the unexpected tax reform proposed by the government, taking advantage of amendments proposed this week on extraordinary taxes on banks and energy companies. Concretely, the Junts amendments also move away from the focus on large companies, from maintaining the tax on banks or the end of the tax on energy companies, and propose a tax package in favor of SMEs and microenterprises. It will gradually reduce corporate taxes until 2027applying a rate of 17% in the first tranche of 50,000 euros to microSMEs and 20% in general. It also offers a deduction of up to 30% which rewards SMEs which generate jobs and increase their size.
Aware that the Catalan economic fabric and the country are mainly made up of SMEs, Junts considers his initiative as a commitment to preserving the economic activity of the region, as elEconomista.es learned. This will mean a saving of 9.5 billion nationally – 2.5 billion in Catalonia – for companies that charge up to 10 million euros.
The sector’s state-level employers’ association, Cepyme, is currently evaluating the scope of the measures proposed in the package of amendments. In Catalonia, the president of employers’ organization Pimec, Antoni Cañete, expressed his gratitude to Junts for making a historic demand a reality.
SME with a turnover of less than 1 million
Companies with a net turnover of less than €1 million will benefit from a reduced tax rate compared to the current 23%. The first tranche which taxes up to 50,000 euros will be taxed at 21% in 2025, and the rest of the tax base will be taxed at 22%. In 2026, the rate applied to Businesses will increase to 19% on the first tranche of 50,000 euros and the rest will remain at 21%. In 2027, the first tranche of 50,000 euros will have a rate of 17%, while the rest will have a rate of 20%.
SME with a turnover of 1 to 10 million
Small and medium-sized businesses will also benefit from a tax reduction adapted to their size and business volume. SMEs with a net turnover of 1 to 10 million euros will benefit from a progressive reduction of Businesses until 2027. The currently applied rate of 25% will increase to 24% in 2025, to 23% in 2026, to 22% in 2027, 21% in 2028 and 20% in 2029.
Deduction for reinvestment aimed at creating jobs
Junts’ proposal commits to SMEs and micro-SMEs that reap profits and reinvest capital for job creation, rewarding those that generate more jobs. Thus, these bonuses for business reinvestment in human capital will have their tax advantage for businesses.
Companies with a turnover of less than 1 million euros and which increase their workforce by between 2% and 5% will benefit from a bonus in the Company base of 23%. Those who increase their workforce by 5% to 10% will benefit from a reduction of 26.5% on the base. And for those who create 10% more positions, there will be a 30% reduction on the base. It will limit the deduction from the corporate tax base to 25%.
The deduction for increase in workforce will be similar to that of VSEs whose turnover can reach 1 million euros, with one nuance: the limit will be set at 20% of the tax base. Finally, companies with a turnover of more than 10 million euros will benefit from the same deduction in the corporate tax base. The Catalan formation wants to ensure that SMEs gradually increase the size of their workforce thanks to a tax incentive that benefits this progress.
For mutualists, social contributions…
In the agreement to reform taxation in the coming years, Junts included an amendment to remove the rate that the government wanted to impose on mutual societies. The government wanted to carry out this tax which would affect 2.7 million Catalans who subscribed to health insurance with an increase in contributions of 8%, they explain. Thanks to these agreements, “investments of more than 1.1 billion euros have been saved for the industrial fabric of Catalonia, as well as for the workplaces linked to it”, says the deputy of the Junts, Josep María Cruset.
The PSOE and Junts also want non-profit sports clubs to be able to hire coaches for under-18s without having to pay social security contributions linked to the formalization of an employment relationship. It would subsidize 100% of the contributions for common contingencies of coaches or instructors who coach or train minors under the age of 18 in clubs, associations or non-profit sporting entities.
