The Treasury activates the procedure to apply to large companies a minimum of 15% in companies

The Ministry of Finance activates the procedure to apply directive 2022/2523 in Spain, which sets a minimum corporate tax rate of 15% for large companies.

Thomas Osborne
Thomas Osborne
07 March 2023 Tuesday 12:36
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The Treasury activates the procedure to apply to large companies a minimum of 15% in companies

The Ministry of Finance activates the procedure to apply directive 2022/2523 in Spain, which sets a minimum corporate tax rate of 15% for large companies. The department of María Jesús Montero opened the public consultation yesterday afternoon to transpose the aforementioned European regulations, which are mandatory. The deadline to apply ends on December 31.

The objective of the regulation is to put a stop to the erosion of tax bases caused by the location or displacement of the income of large multinational companies and national groups of a certain size in the European Union to countries or territories with low tax levels. . Hence, Treasury sources indicate, once this regulation is incorporated into the Spanish legal system, all parent companies and subsidiaries of large companies will have an effective tax rate in the corresponding countries or territories of at least 15%.

The directive, they add from the Treasury, shares the objectives, content and structure of the document approved by the OECD and the G20 in 2021 to limit downward tax competition in corporate tax rates.

The directive contains two coordinated tax rules, the one for the inclusion of income and the one for insufficiently taxed profits, which will guarantee that multinational groups and national groups, with a consolidated income equal to or greater than 750 million euros, effectively pay tax to a minimum rate of 15% on the income they obtain in each of the countries in which they operate. There will be no possible escape.

The ministry recalls that the minimum rate of 15% in the corporate tax base that is in force in Spain is compatible with the European directive. That is, it will remain in force and some technical aspects will be implemented to avoid such erosion by subsidiaries.

The Treasury's decision to launch this procedure coincides in time with the confrontation with Ferrovial over the transfer of its headquarters to the Netherlands. The Government rules out a direct relationship and points out that the directive obliges all the countries of the European Union to implement this minimum of 15% in companies. The multinational chaired by Rafael del Pino will have to settle that fee even if it moves to another country.