Fernando González Urbaneja | The sequence of events is relevant to the outcome and has to do with the electoral confrontation. Behind and at the bottom of this debate or storm there is no doctrine or theory, there are no documents with well-founded proposals, it is just a matter of brushstrokes with ideological pretensions of little flight and quite a lot of trickery.The opposition party, with Núñez Feijóo at the…
J.P. Marín-Arrese | The Socialist-run regional governments in Spain face dire prospects in the coming elections next year. High inflation, low growth and rising unemployment weigh heavy on voters’ sentiments against the left-wing coalition governing Spain. So they resort to promising tax cuts as the best recipe to cushion their dwindling support. The Valencia Chairman, Mr Puig, has announced a cut in personal income tax, mirroring the national Opposition leader’s…
The president of the Junta de Andalucía, Juanma Moreno, yesterday joined the trail blazed by the president of Madrid by announcing he will grant a 100% rebate on wealth tax. He will also deflate personal income tax, with effect from the 2022 tax return, which is the one that will have to be accounted for to the Treasury next year. According to calculations made by the Andalusian government, this tax…
Luis Alcaide | In the wake of his meeting with Prime Minister Pedro Sánchez, the main opposition candidate Alberto Nuñez Feijóo, recently elected president of the Partido Popular, complained that he had not been heard on his proposals on taxation: a reduction in personal income tax for taxpayers with lower incomes in order to compensate for the greater frequency of the effects of inflation. This is neither a pro-vo¬lu¬tionary nor…
The maximum marginal rate of Personal Income Tax (IRPF) now exceeds 50% in three autonomous communities: Valencia (54%), Navarra (52%) and La Rioja (51.5%), which impose a tax on high incomes that exceeds half of the income. And four others have a tax rate of 50%: Asturias (50%), Cantabria (50%), Canary Islands (50.5%), Catalonia (50%), In contrast, the Community of Madrid has established the lowest regional tax bracket in Spain….
Up to six European countries have already announced that they will abandon the Digital Services Tax (DST) (known as the Google tax) after its failure to raise revenue. They have expressed their intention to eliminate this tax and transfer their tax policy to the new international project, led by the US, on which the Organisation for Economic Co-operation and Development (OECD) is already working. These countries will wait for the OECD’s new tax rules to be approved before eliminating their Google taxes.
This figure means 24.5% of the €850 M expected to be collected by the government for the whole year, i.e. a quarter of the estimate for the whole of 2021, reported agency Europa Press. On the other hand, in the first half of the year, Spain has received 93 million euros from the first settlement of the Tax on Certain Digital Services, known as the ‘Google tax’, of the 968 million euros expected for this year.
Intermoney | The Spanish government’s collection capacity, given that the basic economic scenario is likely to be worse than it has projected, must be questioned. In fact, even taking into account the tax hikes included in the 2021 budget bill, we estimate tax revenues will be around 211 billion euros in 2021. So almost 11 billion euros below budget and this would be equivalent to just under 1% of next year’s GDP. This figure does not include the capacity to fight tax fraud, which is expected to generate 828 million euros.
J.P. Marín- Arrese | The Spanish government has tabled a proposal for a Google tax but will refrain from applying it till the year-end. They boasted not so long ago that nothing could deter it from taxing the tech companies. When confronted with the task of delivering its promise, courage seems to falter even if Washington has issued no explicit warning. Presumably, the French discomfiture conveyed a stern lesson of what happens to anyone defying the US.
At its cabinet meeting on Tuesday, the government gave the green light to the implementation of new taxes on digital business and stock market transactions, following similar steps by other European countries. The agreement reached between Spain’s PSOE and Podemos coalition government included the approval of the two taxes, with which the Administration expects to collect about 2.050 billion euros (€1.200 Bn with the digital tax and €850 M with the financial transactions tax).