The Spanish Council of Ministers has given the “go ahead” to a draft law to implement the European directive that aims to introduce a global minimum corporate tax rate of 15% for large multinational enterprises (MNE). This decision is in line with the agreements reached by the G20 and the OECD and is a significant step forward in the fight against tax evasion and for fairer tax competition.
The governmental draft provides for a supplementary tax to be levied together with the minimum rate already in force in Spain. Under this new regulation, multinational companies with a turnover of more than EUR 750 million would have to pay at least 15% tax on their profits. The supplementary tax is designed to avoid double taxation, ensuring that companies are not taxed twice for the same concept.
Exceptions are foreseen for certain types of entities, e.g. public institutions, non-profit organisations or pension funds, in view of their vital role and contributions to society.
By applying the minimum rate of 15% Spain intends to make sure that large multinational companies contribute fairly to public finances, expecting the measure to generate additional tax revenue of around EUR 1 billion.
At a global level, the introduction of minimum taxation is estimated to generate between EUR 125 billion and EUR 150 billion – marking a crucial change in the international tax system. In Spain, however, the measure is expected to affect few companies, for which reason, it has sparked a debate about its effectiveness and scope.
While for some this initiative is a step towards a fairer and more balanced tax system, others criticise complexity and constant changes in Spanish tax regulations. Tax experts emphasise the need for a stable framework that not only increases tax revenues but also promotes investment and economic growth.
With the introduction of the minimum tax rate of 15%, Spain joins the group of countries that have committed to tightening tax regulations for large companies, thereby sending a clear message of its commitment to tax fairness and corporate responsibility.