Friday, 16 December 2016

Spain introduces measures to raise corporate income tax revenue and tackle VAT fraud

A tax package approved by Spain’s Council of Ministers on 2 December 2016 and published in the official gazette on 3 December 2016 aims to achieve deficit reduction goals by raising tax revenue through measures to increase the corporate income tax liability of taxpayers operating in Spain (e.g. by limiting the use of losses and tax credits and eliminating certain deductions); some of the measures apply retroactively for fiscal years beginning on or after 1 January 2016. Also on 2 December, the council also approved a royal decree that includes measures to modernize the administration of VAT and prevent VAT fraud, basically by introducing a new electronic VAT reporting system (SII).
In addition, as indicated in the press conference following the Council of Ministers meeting, the council will send a draft bill to parliament with other tax measures (including a measure on environmental taxation). The royal decree on VAT and the draft bill have not yet been published, so there is limited information available on their content.

Source & more info: Deloitte