03 October 2016 Spain significantly increases corporate income tax interim payments as of October 20 The Spanish Council of Ministers passed Royal - Decree 2/2016 on September 30, that: (i) increases the rate applicable to corporate income tax (CIT) interim payments from 17% to 24% over the taxpayer's CIT base; and (ii) introduces a new mandatory minimum CIT interim payment of 23% over the taxpayer's accounting profits (or 25% for certain taxpayers in the banking or oil & gas industries). These new measures affect "large" companies only (i.e., companies with a turnover exceeding €10 million during the 12 months prior to the beginning of the relevant fiscal year). The objective of this rate change is to increase Spain's public revenues in order to meet the commitments agreed with the European Union (EU), to reassure the credibility of the Spanish public finances and to continue building trust in the Spanish economy. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-1677 |
