On 27 December 2022, the Spanish government has issued the “Law 38/2022” which introduces the windfall profit taxes on the energy and banking sectors. Under this, large energy companies will be charged at the rate of 1.2% of net turnover derived from activity in Spain and Banks companies will be levied at the rate of 4.8% of net interest and commission fee income.
The 1.2% tax applies to persons or entities deemed to be “main Operators” in the energy sector, as defined in relevant laws and regulations. However, operators whose turnover for the financial year (FY) 2019 was less than EUR 1 billion or whose turnover for FY 2017, 2018 and 2019 related to activities in the energy sector did not exceed 50% of the total turnover of the relevant FY would not be taken into account under the rules.
The 4.8% tax applies to banks which operate in Spain and had an amount of net interest and commissions for the year 2019 equal to or exceeding Euro 800m. Both windfall “levies” will come into force temporarily for 2023 and 2024.
