The government partners retain the “temporary” nature of the levy on entities and energy companies, as well as the one that will tax large fortunes
The structure of the new tax on extraordinary profits of banking and energy companies, as well as the tax that will be applied to large fortunes from January 1, maintains its original structure, with some nuances that, in the case of financial entities, will entail bring its application to foreign banks, but with a presence in Spain.
This is evidenced by the amendments tabled by the parliamentary groups supporting the coalition executive (PSOE and United We Can), whose contributions require the tax to also include branches in Spain of foreign credit institutions supervised by the European Central Bank (ECB) ). This novelty, according to the amendment, is explained to try to “avoid distortions of competition in the market between large entities”. It was precisely one of the complaints of the financial sector in Spain against the presence of foreign entities in the national market.
With regard to the tax on energy companies, it will be the large reference operators (oil, electricity, gas and renewables with a turnover of more than 1,000 million euros in 2019) that will be taxed by the new tax. While the amendment specifies that companies “which carry out activities of the production of crude oil or natural gas in Spain, coal mining or oil refining and which in the year preceding the birth of the obligation to pay the benefit, at least 75% of its turnover from economic activities in the field of extraction, mining, oil refining or the manufacture of coke products” referred to in European legislation.
Moreover, the government’s intention is that the tax on large fortunes be “temporary”, despite pressure not only being exerted by other groups, such as EH Bildu, to make it permanent, and even by some members of United We Can. . Finally, this tax – valid for two years – will complement the wealth tax, with the aim of ensuring that assets exceeding 3 million euros are not transferred by the Autonomous Communities. The amendment speaks of “harmonization” so that the tax is deducted where it has already been paid, and applied in the regions where it is almost foreign.
Source: La Verdad
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