The banking groups based in Spain paid an effective rate of 2.84% of their profits for corporation tax in 2016, According to data published this Tuesday by the Tax Agency. The average effective rate of the financial sector rises to 5.24%. It takes into account non-group entities, credit cooperatives and reciprocal guarantee entities. The 40 taxpayers registered under this heading, credit institutions, declared profits of 14,640 million euros and paid a total of 415.9 million.
The effective rate on accounting results is one of the indicators published by the Tax Agency, which tries to reflect the part of the accounting profits that are destined to the payment of tax. This calculation, carried out by the Treasury, receives a lot of criticism from employers, business organizations and other experts. They consider that they do not really reflect the effort that companies make with the Treasury. Because, they argue, they do not take into account that the dividends contributed by the subsidiaries abroad, which is integrated into the results, have already paid taxes in the country of origin. Neither are the negative tax bases considered, due to the losses of previous years and other tax benefits that, they explain, correct imbalances when calculating the tax.
Actually, the Tax Agency also offers the data on the effective rate on the tax base, which takes into account all these circumstances. In fact, the bank's tax base in 2016 amounted to 1,854 million euros. In this case, the type of the banks amounts to 23.02%, compared to the nominal rate of the tax located at 30% for this sector.
"The objective of the publication is to offer a complete view of the tax, including, among other variables, the consolidated net tax rate of the Corporation Tax, which is the appropriate measure of the contribution of the companies as a whole to the tax revenues of the State," the Treasury in a presentation that explains the new statistics.
The effective rate on profits for the total number of companies is 10.5%, with significant differences between companies: The groups concentrate 51% of the billing and 59% of the profit, but only contribute 34% of the liquid quota .
Treasury offers a thorough explanation of the operation of corporate tax. "The settlement of the tax starts, as in other direct taxes, from the income that gives rise to the tax obligation, in this case, the accounting result, which is the end point of the Profit and Loss Account. apply corrections, both positive and negative, and other adjustments in order to calculate the taxable base of the tax.The most important correction is the decrease in the result derived from the exemption for double taxation of dividends.The result is the tax base. From this point, there are two ways: the companies that are integrated into a group add the positive and negative bases of the companies that make up the group, in the rest of the companies there are only those whose base is positive ".
In the case of groups, some additional adjustments to the sum of bases are still necessary. After these adjustments, the consolidated tax base is obtained, which, if positive, will be the tax on the group. The tax base is multiplied by the corresponding rate, giving rise to the entire tax. This fee can be reduced by discounts and deductions. The result of this reduction is the liquid quota that measures the tax burden borne by the taxpayer.
The Tax Agency has published on Monday a broad remittance of data related to corporate tax. This is an extension of its catalog of publications that has traditionally been compiled through the statistical exploitation of tax information, in order to strengthen "transparency and promote debate" on issues of a socioeconomic nature from the data provided by tax statistics .