Friday, March 1, 2024

Brussels files Spain with a new global minimum of 15% in corporate tax

This Thursday, the European Commission opened the infringement file against Spain and eight other countries for not announcing the steps they will take to incorporate into their national legislation the new European directive that requires setting a minimum 15% corporate tax for large companies.

Specifically, the Community Executive sent a letter of formal notification to the Spanish Government to inform it within two months of what steps are necessary to transfer the new legislation, since the time to do so has expired on December 31 and the rule is effective starting January 1 of this year.

Brussels wants to know within two months what steps are needed to pass the new law

The government approved the draft bill to implement this measure in the Council of Ministers in December, but its parliamentary processing is still pending.

If Spain does not respond within the deadline or the response does not satisfy the Commission, the latter may send it a reasoned opinion, the second step in an infringement procedure that ultimately allows Brussels to take countries before the European Court for failure to comply with the law.

Minimum 15%

The directive, approved in December 2022, introduces the EU to the global agreement reached by 140 OECD countries to ensure that large companies pay a minimum effective rate of 15% in corporation tax in all the territories where they operate, and thus they are discouraged. transfer their profits to tax havens or countries with very low tax levels.

The rules apply to multinationals and large national companies with an annual turnover of more than €750 million that have a parent company or subsidiary in the EU.

The rules apply to multinationals and large national companies

It includes rules for calculating the tax burden of companies so that if they pay a rate lower than 15% in any jurisdiction, the country where they have their headquarters can apply a complementary tax so that the effective contribution reaches that rate.

In addition to Spain, the European Commission opened a file against Estonia, Greece, Cyprus, Latvia, Lithuania, Malta, Poland, and Portugal for not announcing their enforcement measures.

World Nation News Desk
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