Spain: Spanish Experts Call For Huge Direct Tax Cut
A report from the Experts Committee on Tax Reform recently submitted to the Finance Minister has recommended that there should be reductions in direct taxes and in the social security contributions. These would be paid for partly by increases in
See MoreSpain to Bill Firms Directly For Social Security Contributions
The Social Security Administration in Spain is to commence directly invoicing employers in respect of monthly social security bills, instead of relying on employers to deduct the contributions from wages on a monthly basis. The invoice will be
See MoreSpain – Refund opportunity for retail sales tax on hydrocarbons
The Court of Justice for the European Union (CJEU) in late February 2014 issued a judgment, finding that Spain’s tax on retail sales of certain hydrocarbons is contrary to EU law. The CJEU rejected a request of the Spanish tax authorities that
See MoreSpain – published social security contributions decrease
The Official Gazette published Royal Decree-Law 3/2014 on 1 March 2014. This law contains urgent measures to promote employment via the contracting of workers for an indefinite period. The Decree-Law sets out the circumstances in which a flat social
See MoreSpain’s opposition leader proposes low-income tax package
In the course of the State of the Nation debate in Congress, Spain's Socialist Party (PSOE) leader proposed that a tax package be introduced to protect low-income earners in Spain, and in particular to protect families. The proposal related to
See MoreSpain – CJEU finds Retail sales tax on diesel contrary to EU law
The Court of Justice of the European Union (CJEU) has issued a judgment in the case of:Transportes Jordi Besora SL v. Generalitat de Catalunya, C-82/12 ruling that the Spanish tax on retail sales of diesel and petrol is contrary to EU law. The CJEU
See MoreSpain Slashes Labor Taxes To Create Jobs
Spain has announced plans to significantly lower social security contributions for employers who recruit permanent members of staff. The Prime Minister has suggested that an upwards revision of the growth forecast for this year and next will enable
See MoreSpain: Tax Reform Package Designed
The tax reform committee in Spain will soon present proposals for a comprehensive tax system reform. It is expected that the committee will recommend simplification of the system and corporate taxation and individual income tax rate reductions,
See MoreSpain: National court decides intra-group debt transaction as fraud of law
The Spanish National Court decides the case of Sabic Innovative against the tax administration (Appeal 367/2010) as fraud of law. The Court ruled that the intra-group debt transaction is usually tax-driven and did not have an economic or business
See MoreOman and Spain sign DTA
The double taxation agreement (DTA) signed between Oman and Spain was submitted to the Economic and Financial Committee of Oman's lower house of parliament on February 11,
See MoreSpain: 2014 Budget is in Effect
The 2014 Budget published by the Spanish government is now in effect as of 1 January 2014. The budget includes a long-term strategy targeting employee training, advance payments regulation and changes to corporate income tax. The main tax changes
See MoreSpanish capital gains tax rules found to be discriminatory by Supreme Court
In a decision on 25 October 2013 in the Brambles France case (appeal No 1374/2011), Spain's Supreme Court ruled that the capital gains tax on non-residents may be discriminatory in some cases. The case involved a French company that sold its shares
See MoreSpain extends latest deadline for cash accounting
The opportunity for Spanish companies to join the new cash reporting VAT scheme has been extend to 31 March 2014. The Spanish VAT cash accounting scheme was announced last year to help small businesses better manage their cash flows. It enables
See MoreSpain – VAT changes effective in 2014
Spain’s value added tax law Changes which made by Law 14/2013, Royal Decree 828/2013, Order 2214/2013, Royal Decree 1042/2013, and Law 22/2013—generally were effective beginning 1 January 2014. In general, the principle change concerns a new VAT
See MoreSpain to review tax system for families
Spain's Finance Minister has announced that the Government will review family tax reliefs ahead of the next tax reform. In a meeting, he has reiterated the Government's commitment to helping Spanish families and promoting equality of opportunities.
See MoreSpain rejects call to raise VAT to 23%
The Spanish Finance Minister has rejected a call by an influential tax committee to increase its standard value added tax (VAT) rate to 23% to help reduce the budget deficit. Spain has already undergone some of the steepest rises in VAT. The Spanish
See MoreSpain: Further VAT Rises Unlikely
The Finance Minister has confirmed that further VAT rises will not take place in the near future. The Advisory Committee for Tax Reform had suggested increases in the headline VAT rate from 10% and 21% to 13% and 23% respectively. External advice
See MoreArgentina-Spain DTA enters into force
On December 23, 2013, Argentina’s embassy in Spain confirmed that Argentina and Spain have exchanged instruments of ratification to bring the double taxation agreement (DTA) signed between the two nations into
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