He Government gets the green light for its tax package, even if it remains weak because if taxes on diesel increase, the SOCIMI regime does not change. Of course, banks will face a new tax and a mandatory minimum of 15% is imposed on corporation tax for large companies.
What does the tax package consist of?
The crux of this reform was the creation of a tax on large companies that ensures that 15% of their profits are paid globally. The government has argued that this tax was imposed by Brussels, but the reality is that the way it was done and the wording of the tax should not necessarily be that way.
What the PSOE failed to introduce into law was its attempt to increase the diesel tax, which was thwarted by the last-minute vote against Podemos, which joined PP, Vox and UPN . The socialist amendment to increase taxes on socimis (investment companies listed on the real estate market), on tourist apartments, on private health insurance premiums and on luxury products also did not prosper .
The bank tax, created in a decree of measures for the war in Ukraine and which will expire on December 31, will change from the status of a land benefit to that of a tax, which implies that provincial treasuries and autonomous communities will be able to manage it. . On the other hand, the rate rises to 7% for financial entities whose interest and commission margin exceeds 5 billion euros, as requested by far-left groups. There will also be an increase in personal income tax on income from large savings.
The new bank tax
With this new section, the Executive seeks to satisfy ERC, Bildu and BNG, as well as the PNV and Junts.
But everything depends on Podemos’ decision. If those of Ione Belarra decide not to support the measure, the increase in the bank tax will not take place. Thus, Belarra must choose between abstaining in the vote on tax reform, which would lead to success, or coming to the table, voting no and breaking the game.
Thus, the rate would be 1% up to 750 million, 3.5% up to 1,500 million, 4.8% up to 3,000 million, 6% up to 5,000 million and 7% from 5,000 million in advance.
The bank has already announced that it will appeal this tax.
Increase in personal income tax
The taxation of capital income with personal income tax will increase by two points from 300,000 euros. All savings income exceeding this amount will have a rate of 30%.
In addition, Congress introduced several legal changes to combat fraud in the sale of fuel, especially for businessmen who sell it below the market price. Concretely, the operators’ billing balance sheet is strengthened and controls are strengthened to combat fraud which, according to the Executive, amounts to around 1.9 billion euros per year.
Bonuses
The tax package approved today also provides for tax bonuses that the parliamentary groups introduced through various amendments – during the incredibly absurd vote of the Finance Committee last Monday.
Thus, there are social contribution bonuses for sports clubs which hire coaches or instructors to train minors. Bonus that will not apply to entities that include professional athletes.
