The state budget bill (the Budget Bill) for fiscal year 2019 was published on 16 January 2019 in the Spanish Parliament Official Gazette. The Budget Bill, which was adopted by the Spanish Council of Ministers on 11 January 2019, will now follow the parliamentary discussion and approval process.

The Budget Bill includes a number of tax measures which are summarized below:

Minimum Tax

The budget 2019 introduced the Minimum Tax as per which CIT taxpayers would be subject to the higher of (i) such Minimum Tax, or (ii) the final tax due under CIT generally applicable rules.

In accordance with the Budget Bill, this minimum tax would only apply to Spanish companies and permanent establishments whose turnover  higher than €20 million during the last 12 months, or to entities or permanent establishments that belong to a consolidated tax group, regardless of their (or the group’s) turnover.

Minimum tax will be calculated over the taxable base, at a rate of 15%. An 18% rate will apply to companies subject to a CIT rate of 30%, namely financial entities and oil and gas companies, and a 10% for newly incorporated entities subject to a CIT rate of 15%.

Decrease tax rate for small companies

The CIT rate for small companies with turnover that does not exceed €1 million is reduced down to 23%.