Royal Decree-Law 2/2016 released on 30 September 2016 focuses on reducing the public deficit by introducing corporate income tax measures that aim at raising revenue.
An increase of the rate applicable to corporate income tax “prepayments” tax payments, with a rate increase from 17% to 24% over the taxpayer’s corporate income tax base (or 29% for certain taxpayers).
A new mandatory minimum corporate income tax prepayment of 23% over the taxpayer’s accounting profits (or 25% for certain taxpayers)—the minimum corporate income tax prepayment implies that holding companies would be requested to make payments on account, even if their total income amounts were tax-exempt.
These new measures affect to companies with a turnover exceeding €10 million during the 12 months prior to the beginning of the tax period, and have an effective date of 30 September 2016.
