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Spain Update
There have been several important tax reforms in the
Spanish legislation in the last few months.
Wealth Tax
The Wealth Tax was approved by Law 19/1991 of 6 June
2011. The Law 4/2008 (September 23) introduced changes
to the Law 19/1991. It eliminated the obligation to
contribute TO Wealth Tax without repeal.
Royal Decree Law 13/2011 effectively restores the obligation
to satisfy the Wealth Tax for years 2011 and 2012.
Tax remains in the 31 December 2011 and 2012 and the
obligation falls on net assets (assets and rights with the
deduction of charges and taxes).
Changes introduced by Royal Decree Law 13/2011 are as
follows:
■ The minimum exemption for residence increases from
EUR 150,253.03 to EUR 300,000.
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Taxpayers non-resident in Spanish territory are obliged
to appoint a representative in Spain to the Treasury. The
responsibility is solidarity. Breaching this obligation is a
punishable act.
The basis of tax assessment exemption increases from
EUE 108,182.18 to EUR 700,000.
It eliminates 100% bonus share integrated.
It restores the obligation to self-assess tax liability.
Forced to filing (once applied tax deductions and credits)
for taxpayers whose assets exceeds EUR 2,000,000.
It also will be mandatory to non-residents (real obligation) in
Spanish territory when their net assets are over EUR
2,000,000.
The legislation states that the Autonomous Governments
may apply to the tax rebates on capital. The Autonomous
regions have the capacity to regulate some parameters of
the Wealth Tax so the limits to declare and the amounts to
pay can vary depend on the Autonomous region where the
assets are located.
Corporate Tax
1. Prepayments tax
The percentage to calculate the prepayments tax to be undertaken
by large companies to taxable persons whose
turnover has exceeded the amount of EUR 6,010,121.04
during the 12 months prior to the start date of the tax years
2011, 2012 or 2013 has been raised.
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The result of multiplying by five sevenths the tax rate
rounded down when in the twelve-month net turnover
of less than EUR 20 million.
The result of multiplying by eight tenths the tax rate
rounded down, whereas in those twelve months, the net
amount of turnover is at least 20 million but less than
EUR 60 million.
The result of multiplying by nine tenths the tax rate
rounded down, whereas in those 12 months, the net
amount of turnover is at least EUR 60 million.
2. Loss tax base
Where turnover has exceeded EUR 6,010,121.04 in 2010,
the offset of brought forward losses against the profits of
2011, 2012 and 2013 is limited to 75% of those profits if
turnover is between EUR 20 million and EUR 60 million
and 50% if the turnover exceeds EUR 60 million. The
maximum period for carrying forward losses is extended
from 15 to 18 years.
Deadline extended to compensate for the effects loss tax
bases for tax periods beginning on or after 1 January 2012
for all types of entities from 15 to 18 years.
3. Goodwill
The losses of the assets with the sole purpose for the tax
periods that start in the years 2011, 2012 and 2013 amending
the annual maximum deductible expense of the financial
goodwill embodied in the acquisition of holdings in equity in
non-residents from 5% of the amount to 1%.
Value Added Tax
The rate of VAT on the supply of new homes is reduced
from 8% to 4% until the end of 2011.
42 // PKF International Tax Alert All Regions
Issue 8 November 2011