The coalition agreement sealed this Tuesday between PSOE and Sumar, pending a successful investiture of Pedro Sánchez, contains a star measure in terms of income that would allow the Government to have an additional cushion. The document bases the extra expense that the new social initiatives will entail on a reform of the corporate tax to reach a minimum effective rate of 15% on the accounting results of large companies, and not on the tax base as now. The result would be 10,000 million more in revenue each year, when it is fully implemented, according to Sumar. The Ministry of Finance, for its part, refuses to make official estimates until there is a firm proposal on the table.
Reforming the corporate tax is a recommendation that was already raised by the experts that María Jesús Montero turned to in 2022. The committee found that large business groups use a series of adjustments to reduce the consolidated tax base, that is, the taxable income. . For example, compensation for negative impossible bases from previous years or “a broad set of tax or extra-accounting adjustments”, which allow consolidated groups to reduce their tax bill.
In the spirit of ending this “dissociation between tax bases and business profits,” the coalition agreed to this measure in search of “reinforcing fiscal progressivity and reducing the duality between labor and capital income.” Both parties, however, limited themselves to reflecting generic agreements on fiscal matters, aware that their proposal represents only a roadmap that then has to be validated in parliament by “conservative political organizations,” negotiation sources explained this Tuesday. in reference to Junts and PNV.
The coalition pact also contains a generic reference to the temporary levies in force on banks and energy companies, which will not be permanent. Specifically, the document contemplates “reviewing” them, “readapting” them and “maintaining” them. Negotiation sources specify that the taxes as they are in force will decline and, before the end of next year, the future Government must approve a new figure to replace them. Both tax initiatives are being appealed by the affected sectors.
Something similar happens with the temporary solidarity tax on large fortunes. The coalition agreement does not make it permanent because it is not legally possible. The political intention reflected in the agreement is, therefore, that it be extended, but with a new legislative initiative that will also have to pass the parliamentary process. The PNV defended in its electoral program converting the levies into taxes to agree on them with the Basque Country and Navarra.
Regarding measures to address the increase in prices of basic foods, Sumar proposed involving distribution companies in the search for solutions. The agreement was not possible and was limited to establishing a “price monitoring, information and evaluation system” for the shopping basket.