The Minister of Finance, María Jesús Montero, was euphoric once the The Congress of Deputies carried out a tax reform that Brussels has been asking Spain for a long time. A rule that, in turn, made the government of Pedro Sánchez sweat to obtain the necessary support that finally arrived from its partners on the left and right.
After hectic days -and even evenings- The reform becomes a reality after the negotiations, which the executive defines as “a sign of strength”, which includes among other things that multinationals will pay 15% of companies, while banks will see an extension of the tax until 2026. the keys.
Global minimum rate for multinationals
In a bid to combat aggressive tax planning by large companies, the new rule complies with a European Union directive that allows taxing a minimum rate of 15% overall to multinationals with a turnover of more than 750 million euros. In this way, Spain presents itself as a pioneer when it comes to establishing a minimum rate for this type of companies.
Bank tax
Another issue that caused controversy during the reform negotiations was the creation of a new bank tax. This tax taxes the interest margin and commissions obtained by credit institutions and branches in Spain of foreign credit institutions, in the activities they carry out on Spanish territory.
From the Executive, they explain that the tax rate will be progressive in nature with a tax scale that will fluctuate. between 1% and 7% depending on the liquidable base. The profits will also be distributed to the autonomous communities. Likewise, they emphasize that the temporary tax to which they were already subject did not cause significant negative effects nor reduce the accounts of financial entities, as they indicated to avoid the introduction of this tax .
In this way, the tax aims to ensure that the banking sector, which makes significant profits, continues to contribute to the support for public spendingin accordance with the principle of tax justice according to which whoever earns the most must contribute the most to the collection of taxes.
Fight against hydrocarbon fraud
In this reform, measures are also introduced to prevent fraud in the fuel sales and therefore at a price lower than the market price. This practice is detrimental to competitors, but also to public coffers. To combat this, controls are being strengthened, while operators’ billing information and recording systems are being strengthened.
Adapting to corporate tax decisions
On the other hand, the Government and its partners consider that it is not logical that large companies, through deductions, end up paying Companies a lower rate than that paid by small and large companies. So, in order to limit these deductions and brings the real rate paid by multinationals closer to the effective rate, the approved bill envisages avoiding the impact on tax collection that would be caused by the judgment of the Constitutional Court which annulled a set of tax measures in the corporate tax approved by the PP government.
Corporate tax reduction for SMEs
In the area of small and medium-sized businesses, the rule also reduces the type of businesses for those with a turnover of less than one million euros. In this way, the tax base included up to 50,000 euros will have a 17% tax and the rest of the tax base will have a rate of 20%. This reduction will be progressive until 2027.
Increase in personal income tax on capital income
In accordance with one of the main arguments used by the government to apply this rule – whoever earns the most must contribute the most – is included a two-point increase in the taxation of capital income above 300,000 euros, thus passing from 28% to 30%. This modification, which promotes the progressiveness of the personal income tax, This only concerns the highest capital income.
Thus, the Executive considers that this measure will help to reduce the gap with labor income. In fact, they point out that the latter are much more numerous and affect the majority of the middle and working class. Likewise, the government of Pedro Sánchez recalled that it had already approved a reduction in this tax for low incomes of up to 21,000 euros, which they say saved families more than 1.3 billion.
New tax on electronic cigarettes and increase in tobacco tax
Another point of this rule affects the Ministry of Health led by Mónica García from where the former leader of Más Madrid has already presented an anti-smoking plan. This involves the creation of a tax on electronic cigarettes, the growing use of which among young people is of particular concern to the Executive. In fact, it is a non-revenue tax which is put at the service of health policy in order to reduce the consumption of tobacco and electronic cigarettes.
Promote the application of VAT to tourist apartments
THE housing problem In Spain this has also been transferred to this tax reform. This law urges the Government to promote the modification of the harmonized VAT directive to be able to levy this consumption tax on tourist rentals in areas where these accommodations make access to housing difficult for their residents.
This entire set of measures aligns with international tax policy, since it transposes a European directive on pillar number two of the OECD ‘Base Erosion and Profit Shifting (EBTB)’ -BEPS- program which authorizes a global minimum rate of 15% to be imposed on multinationals. By respecting these initiatives of the Fiscal Plan sent to the European Commission and the tax reform initiated in the Recovery Plan, Spain will be able to receive 7.2 billion euros of European funds.
