The Official State Gazette (BOE) has published the Government’s new fiscal package, which came into force on Sunday 22 December 2024, one day after its publication in the BOE. BOE.
This reform introduces a number of significant measures to the Spanish tax system, which are detailed below. which are detailed below:
We come across a key component related to the bank levy, a tax that was initially set up as a temporary ‘property benefit’ under a decree motivated by the needs of the a decree motivated by the economic needs arising from the war in Ukraine, ending on 31 December. The transformation into a tax has a number of new implications new implications: its permanent nature and its decentralised management to the regional and autonomous communities. and autonomous communities; depending on them the disbursement of 7.2 billion euros coming from the 7.2 billion euros from European funds.
The tax on banks’ interest margins and commissions has been reconfigured. banks has been reconfigured. This tax, which is now progressive in nature, establishes the following tax rates tax rates: 1% up to EUR 750 million, 3.5% up to EUR 1.5 billion, 4.8% up to EUR 3 billion, 6% up to EUR 5 billion, 4.8% up to EUR 3 billion, 6% up to EUR 5 billion and 7% above EUR 5 billion. 5 billion.
On the other hand, actions are implemented to combat tax fraud in the commercialisation of hydrocarbons, especially against of hydrocarbons, especially against the operations of companies that misappropriate the VAT collected companies that appropriate the VAT charged on the supply of fuels to petrol stations, thus preventing the sale of products for
This prevents products from being sold below the market price and, as a result, less revenue being collected, less revenue is collected.
An increase in taxes on vaping devices and tobacco is introduced, with the aim of discouraging the sale of vaping products at below-market prices. to discourage consumption and improve public health. VAT is harmonised at European level for European level for short-term rentals of dwellings, mainly affecting tourist rental platforms. mainly affecting tourist rental platforms. The obligation to issue and electronic invoicing is extended to all commercial relations between entrepreneurs and professionals, with a view to professionals, seeking to improve transparency and fiscal control.
With regard to corporate income tax, the measures have been as follows:
A reform of the Corporate Tax for small companies is implemented. The companies with a turnover of less than one million euros will see a reduction in their corporate Corporate Income Tax. The taxable base up to 50,000 euros will be taxed at a rate of 17%, and the rest of the taxable base will be taxed at a rate of 17%. 50,000 will be taxed at 17%, and the rest of the taxable base will be taxed at 20%. This reduction will be gradual until 2027.
With regard to personal income tax, capital income above 300,000 euros will increase its taxation by two percentage points. 300,000 euros will increase their taxation by two percentage points, from 28% to 30%.
A measure has been approved to ensure that people with absolute permanent incapacity or severe disability do not lose their pension or severe disability do not lose their pension if they take up a job and are subsequently unable to continue with it. continue with it.
A bonus is established for hiring by non-profit, non-professional sports organisations, promoting professional non-profit sports organisations, promoting employment in the amateur sports sector. The reform also approves a provision on exceptional income from artistic activities.
The legislation is also amended to allow the funds from the Reserve for Investments in the Canary Islands (RIC) to be used for the refurbishment of subsidised housing for renting, while maintaining its tax for renting, while maintaining its tax regime.
This tax package aims to modernise the Spanish tax system, increase revenue and combat tax fraud, in order to and combat tax fraud, in line with the commitments made to the European Union. European Union.
If you have any doubts regarding the new tax reform, we remain at your disposal to to offer you the best advice on the regularisation of your tax situation.