Spanish parliament has approved the comprehensive tax reforms plans on 24 November 2014, which will be published shortly in the Official Gazette. The legislation will enter into force from January 1, 2015 and followings changes have been taken place;
Corporate Income Tax
- Reduce corporate income tax rate from 30 % to 28 % from next year, which will be further reduced to 25 percent in 2016.
- A reduced rate of 15 percent will apply to companies formed in 2013 or 2014, for two years.
Personal Income Tax
- The minimum individual income tax rate will also reduce to 24.75% in 2015 and to 19% in 2016. The top marginal tax rate will fall to 47 % in 2015 and to 45% in 2016 and will be levied on income in excess of EUR60,000 (USD74,500), down significantly from EUR300,000 currently.
- The tax-exempt threshold will rise to EUR12,000.
- Tax on savings income of up to EUR6,000 will fall from 21 percent to 20 percent in 2015 and to 19 percent in 2016. Savings income of up to EUR50,000 will be taxed at a 22 percent rate in 2015 and a 21 percent rate in 2016.
