Spain’s government has brought forward the “solidarity tax” for large fortunes to 2022, hoping to raise $3,000 million within two years.
The Ministry of Finance has progressed to 2022 the entry into force of “solidarity tax” for large fortunes, with which the government of Spain hopes to raise 3,000 million in two years, according to sources from the department led by María Jesús Montero. Until now, the government of Spain had ensured that the tax would come into effect in 2023 and be extended until 2024.
With this change, the new tax will be in effect in the years 2022 and 2023 so that collection will start in 2023 and 2024, coinciding with the abolition of this tax. After these two years, the government will evaluate whether the directive will be maintained or not.
The Independent Authority for Fiscal Responsibility (AIReF) warned yesterday that the tax should come into effect this year, as the budget plan sent to Brussels by the Sánchez government a few weeks ago states that the collection of this new tax and effectively in 2023. Specifically, AIReF predicts a collection for next year of 1,270 million euros and 1,370 million for 2024.
It is therefore the intention of the Treasury to approve the new tax on large fortunes by December 31 of this year so that it can come into effect in 2022, and one of the options it is considering is to introduce it as an amendment to the bill that Congress is currently processing to tax extraordinary income for energy companies and financial entities.
The new tax on large wealth is levied on net assets of more than three million euros, with three tranches: 1.7% on assets between 3 and 5 million; 2.1% on assets between 5 and 10 million, and 3.5% of 10 million.
energy tax
On the other hand, the executive president of Iberdrola, Ignacio Sánchez Galán, has assured that the energy company will fight in court if the Spanish government decides to go ahead with its tax on energy companies, consisting of levying 1.2% tax on the sales of the major companies in the sector.
The director believes that the tax, as proposed by the Spanish government, “goes against European directives, which clearly say that it is a tax related to additional benefits, and it is not the case that occurs in Spain”. “He’s not talking about income, but about extra benefits,” he added.
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Source: EITB
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.
