Companies with more than 5,000 employees were taxed at an effective rate of 17.08% of the tax base
Large companies, with more than 5,000 employees, paid the lowest average rate in companies in the Spanish business spectrum in 2020. Specifically, and according to the latest statistics from the Tax Authorities, these companies were taxed by Companies at an average rate of 17.08% of the tax base. This figure drops to 3.59% if the effective rate of profit (accounting result) is taken as a reference.
It is true that the figure is higher than the minimum rate of 15% already set by the government in the General State Budgets (PGE) of 2022. But the evolution of the statistics reflects how larger companies (both in terms of number of employees and in terms of invoicing) are taxed at a higher rate. on average lower rate than that of the small one.
For example, the data from the consolidated annual accounts for this tax show that the highest rate is borne by companies that are considered to be micro-enterprises. Specifically, they pay an effective rate on tax base of 23.31% and 14.62% on accounting profit.
The data points to rates of 22.17% and 14.73%, respectively, for medium-sized companies. And even within the big ones, the differences are remarkable. In the year of the pandemic, companies with between 500 and 1,000 employees paid an effective tax base rate of 22.10% and 11.99% on profits, while companies with between 1,000 and 2,500 employees faced rates of 20.56% and 6.70%.
For their part, companies with between 2,501 and 5,000 employees paid corporate income tax at an average rate of 19.41%. Taking profits as the reference instead of the tax base, the figure drops to 6.79%, double that of larger companies, those with more than 5,000 employees.
In total, and on average, Spanish companies paid an effective rate of 21.79% on the tax base in the year of the pandemic. If the result is extrapolated to profit, the percentage is reduced to 10.12%.
The Tax and Customs Administration also compiles a series of statistics per sector. And the data released this Thursday reveals some surprises. In the midst of the debate on the future bank tax, for which the government expects to collect 3,000 million euros in two years, the 195 credit institutions that came to the table paid an effective corporate rate of 23.4% on the tax base and 6.64% on profit.
For insurance companies, the rate on the taxable basis was 22.08%. But the biggest difference from banking is in the accounting profit data, with an industry rate of 15.79%.
In contrast, non-financial corporations paid an average of 21.71% on the taxable basis and 10.14% on the profit. Within this group, social services and leisure are those that paid a higher rate in Business, of 23.5% on the taxable basis.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
