Tax advisor: The minimum tax rate of 15% that the Treasury will apply to corporations is appealed

The global minimum tax of 15% for multinationals and large national groups, which the Treasury plans to approve at the end of this year in compliance with a European directive, has been appealed before the General Court of the European Union (GCEU). This measure will apply from 2024 and will affect companies with an annual turnover of more than 750 million euros.

The objective of this tax is twofold. On the one hand, it seeks to prevent subsidiaries of foreign groups that pay less tax in Spain for this concept from compensating this deficit in their country of origin instead of doing so in our country, where the global minimum tax will be implemented. On the other hand, it will make it possible to require subsidiaries located in Spain, whose parent companies are located in countries with low taxation, to pay a higher tax burden for profits insufficiently taxed in the country of origin.

It is important to note that this obligation applies only to large companies that have obtained a turnover of more than 750 million euros in two of the last four years, with the aim of ensuring that they pay at least 15% in corporate income tax in all the countries in which they operate. If the country where a subsidiary is located does not apply this tax, the tax deficit of the subsidiary will be assumed by the country where the parent company is located.

Although experts indicate that the corporate income tax rate in Spain is already higher than 15% (the general rate is 25%), they point out that there are exceptions that can lead a company to pay less tax. For example, if the company is located in the Canary Islands, the tax rate is 4%; in Ceuta or Melilla, allowances of up to 50% apply. In addition, companies investing in R&D can benefit from deductions of up to 100%. Another case is the sale of participations in a company, where the profits obtained can be taxed at less than 2% if a relevant participation in the capital of the company in which it is disinvested is maintained.

B Law & Tax International Tax & Legal Advisors.

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