The payment of Corporation Tax throughout the world amounted to 15,017 million euros to the 112 Spanish multinationals that in 2017 had an annual turnover of more than 750 million euros. This total amount of tax paid represented 17% of its global profit, which reached 88,398 million euros. Measured in terms of accrual, not cash, the tax reached a total of 14,786 million for these groups, 16.7% of the profit, as reported by the Tax Agency in a statement.
Treasury delays corporate tax changes to after 2021
The data appear in the second edition of the annual analysis prepared by the Tax Agency based on the information provided by the companies through the 231 form of information declaration ‘Country by country’ (‘Country by country report’, CBC for its acronym in English), a statement that aims to collect aggregate data from the group for the exchange of information between tax administrations established in the OECD ‘BEPS’ (‘Erosion of Bases and Transfer of Benefits’) agreements.
The Ministry of Finance delayed one of the proposals of the coalition government agreement due to the impact of the pandemic, which consisted of setting a minimum rate of 15% of Corporation Tax since the real rate of 25% was almost never paid for exemptions and other tax engineering tools. The Executive did include in the General State Budgets of 2021 changes in this tax that taxes the profits of companies with the limitation to 95% of the exemption on dividends and capital gains and subsidiaries, which until now were 100%.
The analysis carried out by the Tax Agency, offers in an aggregated form the information of the 112 largest groups with a Spanish parent company and their 14,996 subsidiaries, of which 9,939 are foreign. These multinationals together added a worldwide turnover of 806,441 million euros in 2017.
The second edition of this statistic once again shows a large dispersion of effective rates on earnings. According to the data provided by the companies themselves in their CBC, the 57 companies with the lowest effective tax rates only represented 17.6% of the tax paid by the group as a whole, despite concentrating 50% of the profit .
In accrual, the tax will be the liquid installment of the fiscal year 2017, formed by the sum of the installment payments and the differential installment of the same fiscal year 2017. On the other hand, the “paid” tax is the combination of the installment payments of 2017 and the differential quota of 2016. This difference means that, for example, the tax credits applied that are included in one or another concept (accrued and paid), are different, according to the Treasury.