B Law & Tax
09 August 2023

Tax advisor: Treasury postpones to 2024 the new self-assessment model for the Financial Transaction Tax

The Treasury has decided to postpone the implementation of the new self-assessment model for the Financial Transaction Tax until January 1st of next year. Initially scheduled for September 1, this delay is due to “supervening technical circumstances” in order to ensure proper collection by all Administrations involved (State, Basque Country and Navarre).

The period for submitting comments to the draft order establishing this postponement ends this Monday. In addition to the State, the Basque government in Euskadi also collects and inspects this tax, as well as the so-called ‘Google tax’, due to an agreement of the mixed commission of the economic agreement. The same happens in the autonomous community of Navarre.

The so-called ‘Tobin tax’, a tax that began to be applied in 2021, generated revenues totaling 295.7 million euros in that year. In the following fiscal year, 2022, the figure dropped significantly to 195.9 million, representing a drop of more than 33%, well below the 372 million forecast in the State Budget for that period. Up to June of this year, the collection has been 174.5 million, marking a 13.6% decrease compared to the same period of the previous year. For the whole year 2023, the State Budget estimates a collection of 335 million euros.

This tax applies a 0.2% levy on the purchase of shares in Spanish companies through transfers of ownership, whether these shares are listed on a Spanish regulated market or equivalent in a foreign country, provided that their market value exceeds €1 billion as of December 1 of the year prior to the purchase. It also covers other transactions involving share-related instruments.

The draft order of the Ministry of Finance includes a single article detailing the modification in the manner and process for filing the tax using form 604. It also includes a single final provision that establishes the effective date of the order, set for January 1, 2024. This amendment will apply for the first time to self-assessments of the Financial Transaction Tax corresponding to settlement periods beginning on or after January 1, 2024.

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