Spain introduces a minimum tax of 15% for companies – MNE Tax



By Ramon Bonell,, Madrid

Spain’s 2022 budget establishes a minimum corporate tax rate of 15% of the tax base for certain taxpayers as of 2022. The tax applies regardless of whether or not the companies are carrying on business. abroad.

For the taxpayers concerned, this means that it will not be possible to reduce the net tax payable below this amount by applying deductions.

The minimum tax will apply to companies with net sales of 20 million euros or more (approximately 23 million US dollars) and those paying tax under the consolidated tax regime (regardless of or the amount of their turnover).

The minimum tax rate will be 10% for newly created entities with a general rate of 15%. The minimum rate will be 18% for credit institutions and for entities engaged in the exploration, research and exploitation of hydrocarbon deposits and underground storage, the general rate of which is 30%.

This measure has a counterpart in the income tax of non-residents for income obtained through a permanent establishment.

Total tax liability is the amount resulting from the application of the tax rate to the tax base.

The appropriate allowances and deductions provided for by tax regulations will apply to the gross tax payable, giving rise to the net tax payable, which may in no case be negative.

The following are deductible from the net tax payable or, where applicable, the minimum tax payable: down payments, down payments and down payments.

When these items exceed the amount of net taxable tax or, where applicable, the amount of minimum net taxable tax, the tax administration automatically reimburses the excess.

Ramon Bonell,, Madrid



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