After several weeks of information blackout on how the new taxes on energy and banking will be, the Government has finally presented in the Congress of Deputies the bill that will regulate the taxes. Technically they will not be taxes, but non-tax public patrimonial benefits. Tomorrow they will have a meeting with the affected companies to explain how everything will be, which would amount to around twenty.
The argument used by the Executive is that both sectors are having high profits in an environment like the current one and for this reason they must contribute more to financing the fight against the inflation crisis. Thus, each guild will suffer the tax differently.
In the case of energy companies, the net amount of their turnover will be taxed, which is equivalent to their sales of goods and provision of services, at 1.2%. It will be applied from a threshold of 1,000 million on that aspect, taking as a reference the figure of each company in 2019; that year is used as a base since it is the last one for which data is available without distortion due to the Covid-19 pandemic. Another cause of exclusion will be that a company does not have more than 50% of its business linked to the energy sector, since there are companies that are not energy companies but have business in that area and should not be subject to it.
In the case of banking, the tax will fall on the margins of its financial business. That is, on interest and commissions. Specifically, the difference between what the entity receives and what it pays in each of the two concepts. The rate to be applied on this will be 4.8% and the threshold from which it will be applied will be in this case 800 million euros.
As common points are that the tax will be applied on consolidated tax groups; that intra-group operations will be excluded from taxation; operations of subsidiaries abroad are excluded. Likewise, the tax will not be deductible in the Corporation Tax.
As for the payment of the figures, with which it is expected to raise 7,000 million in two years, it will take place in September a year in arrears. That is, for example, the year 2022 will be taxed, the payment obligation will arise on January 1, 2023 and the payment will be made in September 2023. However, a payment on account (an advance) of 50% is also established in the month of February, which will then be deducted from the amount to be disbursed in September; In this way, this February the energy companies and the banks will already have to pay 1,750 million euros to the public coffers.
Beyond this, the bill prohibits companies from passing on taxes to consumers, as the Government has warned these weeks; What has been ruled out outright is including this as a crime in the Penal Code, as United We Can demand. How will that be done? The Executive does not clarify it. The reality is that they entrust the National Commission of Markets and Competition (CNMC) and the Bank of Spain to articulate the way to monitor this aspect and be the ones to impose sanctions of up to 150% on the amount that is transferred to the client.
Once the bill has been presented in Congress, its parliamentary processing will begin after the August break. The intention is that it be given absolute priority in the Lower House to have it approved before the end of the year; and for that the figure of the bill is used, which is more agile since it does not require certain mandatory reports that would delay everything.