[Spain] Introduction of 15 per cent minimum corporate tax rate on multinational firms

On June 4, the Spanish government announced that it would adapt its legislation to introduce a 15 per cent minimum corporate tax rate on multinational firms, Yahoo reports.

The move brings the country in line with an Organisation for Economic Cooperation and Development (OECD) agreement designed to prevent tax avoidance.

Spain reportedly has a headline corporate tax rate of 25 per cent, however, a number of exceptions allow such companies to pay a far lower effective rate.

The 15 per cent minimum rate will be imposed on firms with revenues higher than €750 million.

Speaking to reporters, Maria Jesus Montero - the Spanish Budget Minister - said, "It aims to fight against the distortion of tax bases and the relocation of the profits of large multinational groups to lower taxation locations."

In 2021, more than 130 countries reportedly agreed to an OECD deal that ensured large international companies would pay a minimum tax rate of 15 per cent, to prevent them from trying to avoid imposts by transferring profits to low-tax countries.

Source: Yahoo

(Quotes via original reporting)

On June 4, the Spanish government announced that it would adapt its legislation to introduce a 15 per cent minimum corporate tax rate on multinational firms, Yahoo reports.

The move brings the country in line with an Organisation for Economic Cooperation and Development (OECD) agreement designed to prevent tax avoidance.

Spain reportedly has a headline corporate tax rate of 25 per cent, however, a number of exceptions allow such companies to pay a far lower effective rate.

The 15 per cent minimum rate will be imposed on firms with revenues higher than €750 million.

Speaking to reporters, Maria Jesus Montero - the Spanish Budget Minister - said, "It aims to fight against the distortion of tax bases and the relocation of the profits of large multinational groups to lower taxation locations."

In 2021, more than 130 countries reportedly agreed to an OECD deal that ensured large international companies would pay a minimum tax rate of 15 per cent, to prevent them from trying to avoid imposts by transferring profits to low-tax countries.

Source: Yahoo

(Quotes via original reporting)