On 1 October 2020, the Finance Committee of the Spanish Senate passed the draft bills regarding digital services tax (DST) and financial transactions tax (FTT). The bill was approved by the Spanish Lower House of Parliament on 30 July 2020. Under the bill, 3% tax to be levied on digital services including online advertising, online intermediation services, and the sale of user data generated through a digital interface. The tax will be limited to companies with annual worldwide revenue exceeding EUR 750 million and revenue from digital service activities in Spain exceeding EUR 3 million.
The includes a 0.2% tax under the financial transactions tax (FTT) on the purchase of shares of Spanish companies with a market capitalization of more than €1 billion; that is 34 of the 35 companies, listed in the Spanish stock exchange index IBEX.
The provisions of bill are to take effect from January 2021 if approved by the Senate.
