Spanish Tax Scheme For Foreign Acquisitions Is Incompatible, Says EU
The European Commission has reported that a new interpretation of a Spanish tax scheme benefiting companies acquiring foreign shareholdings is incompatible with European state aid rules. Spanish current scheme allows companies to deduct the
See MoreSpain: Budget Minister Presents 2015 Budget
Budget Minister Cristobal Montoro presents the Spain’s budget 2015, on September 31, 2014. There are a number of measures containing in this budget that aimed at stimulating economic growth, including reduction in the corporate and personal income
See MoreSpain plans to impose penalty on VAT fraud
In order to reduce rising fraud, Spain is planning to introduce a range of penalty measures on VAT in 2015. These include; EU Rapid Mechanism is to be activated to introduce the reverse charge on the domestic supplies of phones, games, tablets and
See MoreSpain: Planning To Change VAT Compliance 2015
The Spanish Government is planning to change the Spanish Value Added Tax regime and this will be effective from 1 January 2015. The changes are as follows; Transaction of barter must be included in the agreement by both sides in terms
See MoreSpain: Releases modified tax laws by the Spanish Government
On 23 June 2014, draft bills modifying the most important Spanish tax laws were released. The Spanish Government released the second draft bill on 1 August 2014, which will now be discussed and voted on by the Spanish Parliament. It is intended that
See MoreSpain: Supreme Court rules certain provisions of the transfer pricing regulations
The Spanish Supreme Court issued its final judgment regarding challenges the constitutionality of specific provisions of the transfer pricing regulations on 14 July, 2014. The Supreme Court focused the following areas; Secondary adjustment: The
See MoreSpain: Denies to IMF to VAT hike
The Spanish government does not think to increase indirect taxation, despite advice to boost value-added tax revenues from the International Monetary Fund. On July 10, 2014, a report of IMF urged the Spanish government to increase excise duties and
See MoreSpain: Plans to introduce bank deposit tax
The government of Spain is planning to levy a 0.03 percent tax on banking deposits, in a move aimed at harmonizing regional tax regimes and generating revenues for the country’s cash-strapped autonomous communities. Spain's Deputy Prime Minister
See MoreSpain and Dominican Republic treaty enters into force
The income tax treaty between Dominican Republic and Spain will enter into force from 25 July 2014. The treaty was signed on 16 November 2011, which generally follows the OECD provision and concluded Spanish language. Under treaty, the maximum
See MoreSpain: Cabinet approves reduction to income tax rates
The Spanish Cabinet on June 20, 2014, approved the downsizing the corporate and individual income tax rates to encourage investment and employment. Under the revised plans, the corporate tax rate will fall from 30% to 28% in 2015 and to 25 percent
See MoreTax Treaty Between Cyprus And Spain Enters Into Force
The Income Tax Treaty between Cyprus and Spain entered into force on 28 May 2014 and its provisions will come into effect on 1 January 2015. Under the treaty, the following withholding taxes will apply: Dividends: 0% if the beneficial owner is a
See MoreUK – Spain DTA to Enter into Force
The UK’s tax authority has confirmed that the double taxation agreement (DTA) signed with Spain in 14 March 2013 will enter into force on June 12, 2014. The agreement will apply to corporation tax in the UK from 1 April 2015; to
See MoreSpain Fined Over State Aid in Basque Provinces
Spain has been ordered by the European Court of Justice to pay a penalty amounting to EUR 30 million for failing to recover state aid granted by three Basque Provinces and ruled to be contrary to EU law. The state aid provisions of EU law are
See MoreSpain Adopts Stability Program Confirming Future Tax Reform
Spain is to publish its plans for reform of the individual income tax system in June 2014. The reform would aim to simplify the tax system to reduce the amount of compliance costs currently incurred by Spanish companies. The reforms are likely to
See MoreOman – Spain DTA
Oman and Spain signed a double taxation agreement (DTA) on April 30, 2014. No further details of this agreement are currently
See MoreSpain Introduces New Tax Measures
Tax reforms published in Spain include a number of changes intended to boost employment and growth. The changes announced on 25 February 2014 include an increase in family allowances and the allowances for older people; an exemption from income tax
See MoreUK – Spain DTA to Enter into Force
HM Revenue and Customs (HMRC) has announced that the new convention for the avoidance of double taxation (DTA) signed between the United Kingdom and Spain will enter into force on June 12, 2014. The agreement provides for a 10 percent maximum
See MoreSpanish Tax Cuts to Favor Low Income Workers
The Spanish government has emphasized its intention to lower the personal income tax for all individuals and in particular for lower income groups. The Spanish government is to raise the tax incentives in respect of savings and investment and will
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