The plenary session of Congress gave the green light on Thursday to a tax reform that introduces a tax on banks and establishes a minimum global tax of 15% for multinationals with revenues of more than 750 million euros. The approval of this legislation, which is essential for unblocking 7.2 billion euros in European funds, was achieved with the backing of the PSOE, Sumar, ERC, Junts, Bildu, PNV, Podemos, BNG and Coalición Canaria. PP, Vox and UPN voted against.
However, some of the government's proposals were left out of the final text. Among them, the proposals to tighten the regulation of socimis and the elimination of tax exemptions on private health insurance. Likewise, the elimination of the tax rebate on diesel versus petrol, the imposition of new taxes on private jets and luxury yachts, and the introduction of a 21% VAT for tourist flats did not prosper.
Among the most relevant measures is the transformation of the bank levy, initially introduced as a temporary property benefit in the context of the war in Ukraine. From now on, this tax will become a progressive tax, managed by the autonomous communities and regional treasuries.
The tax will apply different rates according to institutions' interest margins and commissions: 1% up to 750 million euros, 3.5% up to 1.5 billion, 4.8% up to 3 billion, 6% up to 5 billion and 7% above this last figure. The revenue will be distributed among the autonomous communities according to their GDP, following the regional funding agreements previously negotiated by the PSOE with ERC.
The reform also introduces specific measures to combat tax fraud in the hydrocarbons sector, especially against the activity of the so-called missing traders, who evade VAT in the intermediation of fuel supply. Taxation on tobacco and vapers is also increased, and VAT on short-term tourist rentals is harmonised at European level.
In the area of corporate income tax, the reform seeks to limit the deductions applicable to large companies in order to bring the effective rate closer to the nominal rate. On the other hand, small companies with income of less than one million euros will benefit from a progressive reduction in taxation, which will particularly affect the first 50,000 euros of taxable income, taxed at 17%.
The approved text includes an amendment that will allow people with absolute permanent incapacity or severe disability to maintain their pension if they take up employment and are subsequently unable to continue working. It also provides for bonuses for hiring in non-profit non-professional sports organisations and specific deductions for artistic activities of an exceptional nature.
With regard to the Reserve for Investments in the Canary Islands (RIC), it will be possible to allocate these funds to the refurbishment of subsidised housing intended for renting, provided that the beneficiaries are registered as applicants for subsidised housing.