The Spanish government raises the corporate tax

Bailing water: the Spanish government raises the corporate tax to balance the accounts

Bailing water: the Spanish government raises the corporate tax to balance the accounts

With the corporate tax raising, it is intended to “plug the gap” suffered in its collection, the worst figure since 1995.

The Spanish Treasury Department has propounded to increase up to 12% the corporate tax’s fractioned payment before the end of the year due to the huge drop in this tax’s collection.

In such a way, the corporate tax’s collection has got a negative balance lowering from minus 539 million euros in May 2016 when in May 2015 it had a positive one from 1.814 million euros. It is the worst figure since 1995.

Along 2016 the Spanish government had removed some “temporary” measures implemented in 2012 with the tax reform such as the erasing of the “dropped rates in the corporate tax’s fractioned payments and the minimum tax of 12% over the businesses’ mandated accounting profit that exceeded up to twenty-per-cent-points volume of business, as it is pointed out at Cinco Días.

But that huge drop in the corporate tax’s collection was not expected at the Treasury Department because they had foreseen a collection’s increase up to 20%: if in 2015 had been collected 24.868 million euros, in 2016 reaching those figures is honestly a pipe dream. Hence the last days’ announcement of this tax in order to try to collect 6.000 million euros more and to plug the gap.

The government is trying to implement that measure in order to take it into force in October but, as the government is still not in place, they could not implement it until the new government was formed and a new Executive were nominated.

The journalist Jaume Viñas, is noticing at Cinco Dias that “the government’s idea is, at the very least, to come back to the last year’s situation. That would mean to establish increased payments between 20% to 27% over the tax base for businesses owning a volume of business up to six million euros. And for those owning up to 20 million euros it will be required a minimum payment over the since-2015-still-in-force accounting profit up to 12%.

Albeit from the Treasury Department is being pointed out that that measure would only be in force for a year, it cannot be discarded that the term will protract over the time.

If you have any legal doubt on your investments, savings, assets and their affecting taxes, please do not hesitate to contact us for a complimentary review at clerk@delcantochambers.com

Del Canto Chambers’ Newsroom.

 

No Comments

Sorry, the comment form is closed at this time.