Nevertheless, and after an agonizing political tug-of-war, the Spanish government has managed to push forward both the minimum rate of 15% in corporate tax for large multinationals, as well as the fiscal package with reforms, adjustments , but also tax cuts. Although in the case of the minimum tax, the vote will take place this afternoon, the executive has the votes tied, which means an oxygen balloon for the preparation (and negotiation) of new budgets generals of the State. In any case, it is a ball that has remained far from the aspirations that PSOE and Sumar, the two members of the government, set in black and white: there will be no taxes on yachts or luxury cars, nor will the regime end special tax on associations, the VAT on tourist flats is not increased, neither are the exemptions linked to private insurance and the tax on energy is, for now, a “compromise”. Here is the breakdown of the economic impact of the key measures:
15% minimum rate
The aim of the new tax is for multinationals to pay 15% for their profits, regardless of where they operate, thus ending the race to the bottom between territories. The State, which has been on the verge of a sanction in Europe for not having previously transposed this regulation, expects to bring in 2,600 million euros a year. In the Spanish case, it would affect 123 large multinationals, according to the latest data from the Tax Agency.
Bank tax
The extraordinary tax on banking will remain for three years (until 2027). The Ministry of Finance hopes to bring in an amount similar to that of previous years (around 1.5 billion euros a year). However, the new tax figure has been approved with important changes. From the outset, it technically ceases to be a “property benefit of a public and non-tax nature” and becomes a tax. The interest margin and commissions of financial entities (from where they obtain the bulk of their income) will continue to be taxed. It affects Spanish banks, but also the branches of foreign entities with activity in Spain.
The tax rate will be progressive (from 1% to 7%) depending on the taxable base. In this way, in those cases in which the liquidated base (income) is higher than 5,000 million euros, the rate is tightened. This last section includes the big State banks (Santander, BBVA and CaixaBank), but leaves out, for a little bit, Banco Sabadell, which due to the volume of income will have a lower rate (of 6%). However, this tightening will be watered down because the new tax incorporates more deductions. All in all, the communities of the regional regime (Basque Country and Navarre) will see the tax agreed, while for the rest of the communities, the State will make a transfer with what it collects based on the territorial GDP.
Returns of capital
The personal income tax rate on capital income (savings) over 300,000 euros is increased to 30%, the impact is around 100 million.
Environmental taxes
Fiscal adjustments on the VAT on hydrocarbons are approved in order to root out the fraud that is generated in its declaration to the Tax Agency.
health
The government has approved a new tax for the vaper or electronic cigarettes, as well as on tobacco. The Ministry of Finance estimates to collect just over 500 million a year. Of these, only a small part (around 35 million euros) would come from the new tax on vaper.
The “Montoro problem”
After the rulings of the Constitutional Court in which some of the reforms of former minister Cristóbal Montoro (PP) were overturned, the Ministry of Finance hastened to solve what could be a return of millions in favor of many companies. Reversing those Montoro mistakes will have an impact of “5,000 million euros” (not in terms of revenue, but in terms of returns that are avoided), according to the ministry.
Tax reduction
The fiscal package, however, also includes reductions: fiscal improvements have been approved for small cooperatives, as well as for small and medium-sized enterprises, as well as for artists and non-profit sports organizations.
The uncertain energy tax
Everything will prosper because the PSOE has agreed with the left-wing parties (ERC, EH Bildu, the BNG and Podem) to extend the extraordinary tax on energy companies. The government has promised to present a bill with a new tax on the sector. This one, however, will include strong bonuses linked to decarbonisation so that parties like Junts vote in favor of it. Sources close to this negotiation point out that these exemptions could touch 90%, so that the final collection would be completely diluted. However, if the bill has not been presented before December 31, when the current tax expires, the government has pledged to extend the current tax. This, however, will have to be validated in the Congress of Deputies, where votes are not guaranteed.
