By Ramon Bonell, EURTAX.com, Madrid
Spain’s budget 2022 establishes a minimum corporate income tax rate of 15% of the tax base for certain taxpayers effective in 2022. The tax applies regardless of whether the companies carry out activities abroad.
For applicable taxpayers, this means that it will not be possible to reduce net tax liability below this amount through the application of deductions.
The minimum tax will apply to corporations with a net turnover of EUR 20 million or more (approximately USD 23 million) and those that pay tax under the consolidated tax regime (regardless of the amount of their turnover).
The minimum tax rate will be 10% for newly created entities whose general rate is 15%. The minimum rate will be 18% for credit institutions and for entities engaged in exploration, research, and exploitation of hydrocarbon deposits and underground storage facilities, whose general rate is 30%.
This measure has a counterpart in non-resident income tax for income obtained through a permanent establishment.
The full tax liability is the amount resulting from applying the tax rate to the tax base.
The appropriate allowances and deductions provided for in the tax regulations shall be applied to the gross tax liability, giving rise to the net tax liability, which may under no circumstances be negative.
The following shall be deductible from the net tax liability or, where applicable, from the minimum tax liability: withholdings on account, payments on account, and payments in installments.
When these items exceed the amount of the net tax liability or, where applicable, the minimum net tax liability, the tax authorities shall automatically refund the excess.
Is this valid for komplette Spain or have the special territory (Canaries, Ceuta, etc.) a special rule?
In the case of the entities of the Canary Islands Special Zone https://canariaszec.com/en/, the positive taxable income to which the percentage determined is applied the percentage determined, will not include the part of the same corresponding to the operations materially and effectively carried out in the geographical area of the said Zone that is taxed at the special 4% Corporate tax rate, regulated in Article 43 Act 19/1994, of July 6, on the modification of the Economic and Fiscal Regime of the Canary Islands.