May 11, 2021

Google rate and Tobin rate, Government will approve them today

Google rate and Tobin rate, Government will approve them today


The Government plans to approve this Friday in the Council of Ministers the bills for the creation of new taxes on digital services and financial transactions, which are expected to raise 1,200 and 850 million euros, respectively, and that they will initiate later their parliamentary procedure in the Congress, according to have confirmed to Europe Press in sources of the Ministry of Property.

The Executive will give the green light in the Council of Ministers to each tax after having submitted the draft laws, approved last October, to public consultation process to gather the opinion of citizens, organizations and associations before the development of the regulatory project

The new Tax on Certain Digital Services, known as 'Google rate', It will tax those companies with total annual revenues of at least 750 million euros and with revenues in Spain of more than 3 million euros.

In particular, in line with the proposal of the European Commission, will tax 3% of online advertising services, online brokerage services and the sale of data generated from information provided by the user during its activity or sale of metadata. The Government expects to collect 1,200 million euros with this tax.

From the Executive it is argued that this tax is created because there is income obtained in Spain by large international companies from certain digital activities that escape the current fiscal framework.

The sale of goods or services between the users in the framework of an online intermediation service are excluded from the levy; and sales of goods or services contracted online through the web of the supplier of those goods or services in which the supplier does not act as an intermediary. In addition, certain financial services are excluded from the tax.

FINANCIAL TRANSACTIONS

Likewise, the Council of Ministers will approve the bill that creates the Tax on Financial Transactionsknown as 'Tobin tax', that will tax with 0.2% the operations of purchase of Spanish shares executed by operators of the financial sector.

Only operations of acquisition of shares issued in Spain by listed companies whose market capitalization exceeds 1,000 million euros will be subject to taxation at 0.2%. The purchase of shares of SMEs and unlisted companies will not be taxed. The taxpayer is the financial intermediary that transmits or executes the purchase order, and must file an annual tax return.

The debt, both public and private, and derivatives are outside the scope of the 'Tobin tax'. The Government calculates that it will enter about 850 million for this new tax figure, which will be used to finance pensions and the Social Security protection system.

What will not be approved by the Council of Ministers this Friday is the bill of Measures for the Prevention and Fight against Tax Fraud, which included a wide range of measures, pointed sources from the Treasury.

Among others, it will include the limitation of cash payments to 1,000 euros among professionals, the reinforcement of the list of defaulters with those responsible and the appearance of debtors from 600,000 euros (now it is one million), the prohibition of amnesties prosecutors and the adoption of international measures to combat fraud. With all these measures, plans to raise 500 million euros extra.

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