The employers’ associations AEB and CECA are contesting before the National Court the treasury tax for which they have to pay 1,000 million euros for the income generated last year
The banks have already made the decision to formally resort to the new extraordinary tax on the financial sector, which the government has introduced to tax unexpected income in the sector due to the interest rate hike in 2022. The decision, taken by the integrated entities in the employer associations AEB and CECA, they launched it after weeks of deliberation and analysis of the tax for which the sector must pay a combined amount of around 1,000 million euros, which corresponds to last year’s settlement.
The financial entities affected by this tax figure – the big ones, fundamentally – have filed two controversial administrative appeals in the national court to challenge the ministerial decision approving the declaration and prepayment models of the new tax on banks, according to what they say industry sources point to this paper.
The standard, which the Minister of Finance, María Jesús Montero, implemented at the end of last year, stipulates that, in the case of banks, a rate of 4.8% will apply to the interest margin and commissions charged by the entities financial institutions in if taken into account, more than 800 million euros would have been received in 2019. In this case, the processing of the congress also included the activity of foreign banks with a presence in Spain. In the case of consolidated groups, the levy is only applied to the business generated in the country. In practice, this change excludes foreign companies, as none of them reach the required 800 million.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
