Banks that issue invoices of 5,000 euros will pay taxes of 225 million every year.

The ambitious tax reform agreed between PSOE and Sumar amounted to the approval of a new tax on banking activities.. IN At the top end of the rate scale, financial institutions with revenues of €5 billion will have to pay €225.75 million per year, with amounts above this figure being taxed at a rate of 7% -35 million extra per €500 million of income. Likewise, agreement”Frankenstein» on electricity tax the purpose of which is to satisfy the demands – sometimes antagonistic – of all investment partners. And some other smaller tax reforms, such as increasing the personal income tax for taxpayers earning more than 300,000 euros per year and the tax on vapers. Added to them measure of social order about pensionersas approved this Thursday by Congress.

And the main measures agreed between the two partners of the Sánchez government, imposed by Sumar, were ignored. in exchange for agreeing to PSOE’s demand for no tax on energy companies. So there is a new taxation for SOCIMI, an increase in the diesel tax and the creation of a new luxury tax that will tax goods such as planes, yachts and luxury cars, among others.

Approved measures

Bank tax

A new bank tax has been introduced, which taxes on interest and commission margin received by credit institutions and Spanish bank branches about the activities they carry out in Spain. The tax rate will be progressive, and the tax scale will vary from 1% to 7% depending on the tax base. The new tax will also apply temporarily for three years.

Last Monday PSOE and Sumar have agreed with Junts that the revenues generated from the tax will be transferred entirely to the autonomous communities.. Thus, in those countries where the fiscal regime is subject to a common regime, it will be allocated based on the GDP of each territory for each year. According to the latest INE data, Catalonia will receive 18.95% of tax revenue, but this amount will change every year.

. In addition, an agreement will be concluded with regional communities on the transfer of the tax to them.

Pact with Jants led to an increase in incomeestablishing the fifth tranche, since for 5 billion in income they will pay 225.75 million annually up to this limit and 7% for profits exceeding (35 million for every 500 million in additional income). The PSOE text notes four tranches, the largest of which starts at 3,000 million, of which 105.75 million will be paid, and the remaining 2,000 million at 6%.

However, this is the full amount and not the liquid amount, obtained by subtracting 25% of the liquid amount paid by the bank in corporation tax, although this amount can never be negative. As of January 1 next year, financial institutions must pay the new tax, effective for the 2024 financial year.

The Treasury Department indicates that the temporary tax, levied over two years for 2022 and 2023, did not cause significant negative impacts or reduce the accounts of financial institutions. However, banks have a different opinion and will take the new tax to court.

Energy tax.

The new tax has been delayed by half. The government agreed with Podemos to begin negotiations to promote bill containing a tax on energy companies. To this end, a negotiating commission will be created in the coming days with the participation of all the “necessary” parties to approve this reform. If this consensus is not reached by December 31, the current tax on energy companies will be extended until 2025.

But with a big difference, which allowed Youngster to agree. They will be left without tax investments aimed at decarbonizationThis is stated in a message from the Ministry of Finance published on Monday, November 18. Companies such as Repsol and Cepsa (now Moeve) have announced withdrawals from investments in Spain.

Reduction in the number of SMEs.

A reduction in the corporate tax rate for companies has been approved. SMEs with a turnover of less than a million euros so the tax base up to 50,000 euros will have a tax of 17%, and the rest of the base will be 20%, compared to the current 25%. The tax reduction will be gradual until 2027. From the employers’ association Pimec. welcomed this measure and its president, Antonio Cañete, said this Thursday that the measure was approved “on the proposal of Pimec.”

The rich will pay more personal income tax

Taxation on capital income (derived from investments) of more than €300,000 increases by two points: from 18% to 20% – below the rate that applies to income from work – and from 28% to 30% if the taxpayer does not have a residence in Spain.

New tax on vapers

The Ministry of Finance indicates that the goal is to combat increased use of e-cigarettes, especially among the youngest. This is not a data collection tool but serves as a public health policy to reduce tobacco and e-cigarette consumption. In addition, the tax on tobacco products will be increased.

Tax on large companies

The measure, already approved two years ago, is supplemented by a directive from Brussels. The minimum global corporate tax rate has been set at 15%. multinational corporations with a turnover of more than 750 million euros. The goal is to combat aggressive tax planning by large companies.

Permanent disability pension

At the social level, pensioners due to permanent disability of the two highest degrees – absolute and severe disability – will be allowed to perform work compatible with their injuries. While they are working, they will stop receiving a pension, but once they stop working, they will receive a pension again.

Losers

The biggest losers from this reform bankingwhich will have a new tax for at least three years, agreed with the left partners – Podemos, ERC, EH Bildu and BNG – as well as with Junts per Catalunya and the PNV, which are going to keep a piece of the financial pie. received from the financial sector.

He also loses tobacco and vaping industryGet used to tax increases. Congress approved a new tax on electronic cigarettes (vapers) and an increase in the tobacco tax.

Half the victory

He the energy sector scores a semi-victorybecause while the current “temporary” tax will be extended for another year, he has managed to keep it very reduced, since it will not apply to investments that oil and electricity companies make in the pursuit of the transition to cleaner energy.

holiday rental houses They will have a little more time. The coalition government’s partners agreed to increase VAT on tourist apartments from 10% to 21% to “reduce their profitability and turn them into permanent rental housing.” But in the end, the law approved this Thursday in Congress limited itself to calling for government reform that allows ““VAT tax on tourist rentals in areas where these premises make access to housing difficult”.

Winners

He transport avoids increasing the tax on diesel fuel, equating the current 30 cents per liter to 40 cents per liter for gasoline. The increase was intended to exclude professionals who would continue to receive bonuses; carriers with trucks under 7.5 tons, including all delivery trucks, would see their diesel price increase by 10 cents per liter. Fenadismer estimates that 56,000 carriers would be affected if approved. Sumar opposed this measure. An unfortunate measure that also benefits millions of drivers as diesel continues to be the main fuel in the current passenger car fleet.

Real estate. Finally, the abolition of the tax regime for socimis (listed property investment companies) whose main activity is the acquisition, promotion and rehabilitation of assets for rental, either directly or through shares in the capital, has not been continued. The agreement signed between Sumar and PSOE for reform stated that this type of company “They only pay 1% corporate tax.“

Health insurance. The PSOE-Sumara Pact included the abolition of private health insurance premiums on the grounds that “they are clearly regressive, fundamentally benefiting high-income individuals and families.”

Luxury sector. The special tax will not be imposed on luxury goods (private jets and yachts, luxury cars) “to improve equity in the distribution of income and wealth,” the government’s tax deal says.