The Ministry of Finance initiated the process. public consultation before approval of the new one minimum tax 15% in corporate tax. According to the European directive approved on 15 December 2022, the new taxation will be much more demanding than what already exists in Spain from 2022 and its main purpose is to ensure that large corporate groups, multinational companies and nationalpay at least 15% Corporation taxeven if the parent company of the group is in another country or even outside the European Union.
The new tax system Tax Administration effective from 1 January 2023.acceptable national surcharge“(According to the term used in the European directive) they reside in the parent company to guarantee that the subsidiaries of parent companies located in another member state of the European Union pay the relevant part of the minimum tax of 15% in Spain and where this does not go.
The Treasury decided to open the public consultation procedure Monday night before adopting the European directive into Spanish legislation. In a full discussion of the possible tax reasons that might be behind the decision to move Ferrovial’s headquarters from Madrid to Amsterdam, the regulation the Treasury has now initiated for public comment and should be in effect on January 1, 2023 comes to underline the so-called finishing purpose tax havens within the European Union. The aim of the European regulation is “the fight against aggressive planning in the domestic market”, as summarized in the Treasury’s public opinion text. The OECD calculates that generalizing this tax would increase world collections by 203,000 million.
With the new arrangement, no multinational will be able to agree to achieve tax below 15% in a given Member State. In order to prevent this, the directive introduces a formula in which the calculation of this minimum 15% is not made by the legislation of each country, but by homogeneous rules on certain licenses of the member states. A minimum of 15% taxation on profits will be determined according to the accounting result after some adjustments, which will be the same in all countries. In addition, each State will be able to ensure that it achieves this minimum taxation. proportional part to the activities of subsidiaries located on its territory.
With the minimum tax of 15% already imposed in Spain since 2022, none of these measures are currently possible. It came in October 2021, although there is no specific date for it to take effect. The European Union has decided to encourage minimum taxation in its territory from 1 January 2023. The current Spanish minimum tax applies to companies with a turnover of more than 20 million Euros and to all company groups. The government should adapt the Spanish tax to the European directive which sets a minimum taxation of 15% for multinational or national groups with a consolidated income of more than 750 million euros. The number of taxpayers required by the directive may be less than the current Spanish tax, but the scope of obligations will be much wider. The current difficulties in imposing minimum taxes on subsidiaries of multinational companies in Spain will be resolved by the new regulation.
The new tribute design is based on two interrelated rules. one hand call ‘income inclusion rule’(RIR) must guarantee that “the parent company of a multinational group or a large national group residing in Spanish territory will be liable to calculate and pay a supplemental tax on income generated by the entities making up the group”. low tax”, that is, below 15%.
Also calluntaxed benefits rule(RBIG) must ensure that any member of a Spain-based group pays tax in the country, “when the parent company of the multinational group is not able to collect the full amount of supplemental tax on low-tax entities through the application of the “income inclusion rule”. The tax corresponding to its subsidiaries will be distributed among the member states of the European Union according to the number of jobs and the value of assets in each region.