On 30 July 2020, the Spanish Lower House of Parliament approved draft laws for a tax on digital services (DST) and a financial transaction tax (FTT). Accordingly, 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. For companies that are part of a group, the thresholds will apply at the group level.
The bill proposes a 0.2 percent tax under the 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 bill will enter into force three months after they are published in the Official Gazette, as well as transitional provisions for determining if the relevant thresholds are met for the period between the date of entry into force and the following 31 December.
