Spain’s Ministry of Finance reveals that it is working on the final legislation for the implementation of the Pillar 2 global minimum tax in accordance with Council Directive (EU) 2022/2523 of 14 December 2022. The current consultation on the legislation will conclude on 19 January 2024.
This legislation includes the introduction of the Pillar 2 income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR) to ensure a minimum corporate tax of 15% for large multinational (MNE) groups with annual consolidated revenue of at least EUR 750 million in at least two of the preceding four fiscal years. The rules apply to all domestic and international groups with a parent company or subsidiary in an EU member state. The bill also proposes implementing a qualified domestic minimum top-up tax (QDMTT) for members of in-scope groups and certain safe harbors. The IIR and QDMTT apply for financial periods beginning on or after 31 December 2023, while the UTPR generally applies for financial periods beginning on or after 31 December 2024.
On 19 December 2023, the Spanish Council of Ministers approved, in the first round, the Draft Law that allows the full transposition of the European Directive relating to the guarantee of a global minimum level of taxation of 15% for groups of multinational companies and groups.
