The General State Budgets approved this Thursday in the Council of Ministers contemplate an increase in collection of 8.1% in 2022 compared to the data provided for the end of this academic year. It will be done, however, trusting in the improvement of economic activity since few tax reforms are contemplated that affect the collection of the main fiscal figures. The minimum rate of 15% for large companies in Societies remains the only major change.
The Treasury will apply the minimum rate of 15% of Companies on the tax base, which reduces its impact
Specifically, the Budgets trust that this measure for large companies will represent an additional 400 million euros in revenue. The Minister of Finance, María Jesús Montero, has acknowledged that it is a “small adjustment” since it will affect just a thousand companies. This measure has been carried out after intense negotiation between the Government partners and it has been advocated to recover the wording that was already included in the 2019 budget project, which declined and caused the electoral cycle during that year.
The proposal, however, has had a lower impact than some anticipated, since it will be applied on the tax base and not on the accounting results of the companies, which significantly reduces its impact. Montero has justified that it be so to avoid making major changes in the tax system until the report of the expert committee arrives in 2022 that is addressing the possible tax reform.
This argument is the one that justifies that in the 2020 accounts hardly any changes have been made in fiscal matters. Montero has ensured that, depending on what the experts and the pending European directive on Corporation tax mark, new changes in Corporation tax can be addressed, opening the door to reconsider certain deduction programs that may be eligible taxpayers. Until then, it has been preferred not to make major changes.
It should be remembered that in 2021 another reform was added that limited the bonus that companies could apply for dividends received abroad, from 100% to 95%. However, Montero has refused to include a new reduction for next year’s accounts, pending the aforementioned committee of experts. The minister has recognized that there is a low performance in this tax in this fiscal figure.
The Government is waiting for the European Union to agree in a directive on a common corporate tax reform to implement the agreements reached within the G7, the G20 or the OECD of the global minimum rate. When this reform arrives, the so-called Google Tax, which taxes the activity of large technology companies in Spain, will have to be eliminated. The Treasury recognizes that this fiscal figure, which came into force this year, and the Tobin Tax, also new in 2021, is having less collection than expected in the current budgets and has attributed it to being a pandemic year and the amendments which were applied in Congress, “which have reduced their collection.” Montero has not set a date for the elimination of these figures.
Beyond Companies, Montero has highlighted in tax matters only the maintenance of the module system for the self-employed and the reduction of bonuses in private individual pension systems, while improving company plans, “in line with the agreement of the Toledo Pact “.
The Minister of Finance has once again vindicated the importance that the fiscal reform that the Government will develop next year based on the conclusions of the group of experts, which has been working since last spring and whose recommendations will be known in February next year. “It is about adapting the tax reform to the 21st century”, Montero assured, recalling the problems of tax pressure that Spain has in relation to other European countries. “We are between six and eight points below the tax burden and four points in terms of taxation of companies,” he stressed.