Finance
Fragile majority in Spanish parliament approves additional tax on large companies
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MADRID (Reuters) – A fragile majority in the Spanish lower house’s budget committee late on Monday approved an additional new tax on large companies with revenues exceeding 750 million euros ($790 million).
MADRID (Reuters) – A fragile majority in the Spanish lower house’s budget committee late on Monday approved an additional new tax on large companies with revenues exceeding 750 million euros ($790 million).
The tax on big companies headquartered in Spain or large companies based abroad but operating in Spain will be in addition to existing taxes, ensuring they pay at least 15% of their consolidated profits, the lower house said in a statement.
Spain, like dozens of other countries, has pledged to apply a 2021 recommendation from the Organisation for Economic Cooperation and Development (OECD) to make sure that large international companies pay a minimum 15% corporate tax to prevent them dodging taxes in one country by transferring their profits to others with lower tax rates.
The text for the new tax was approved by the ruling Socialist Party, its far-left ally Sumar, the right-wing Catalan separatist Junts and other small regional parties, and will be submitted to a vote in a plenary session in the lower house on Thursday.
The minority government led by Socialist Prime Minister Pedro Sanchez has struggled to get enough support in the lower house to pass measures such as an extension of windfall taxes on banks and power utilities or the 2025 budget.
To get a majority in parliament, the Sanchez government needs to win over parties with conflicting goals, such as far-left party Podemos and Junts. The conservative People’s Party and far right Vox, staunchly opposed to Sanchez, together control 172 of 350 seats in the lower house.
($1 = 0.9450 euros)
(Reporting by Inti Landauro; Editing by Bernadette Baum)
The Organisation for Economic Co-operation and Development (OECD) is an international organization that promotes policies to improve economic and social well-being worldwide.
Consolidated profits refer to the total profits of a group of companies, including all subsidiaries, combined into one financial statement.
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