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December 8, 2016
2016-2088

Spain introduces new measures to increase tax revenues, including significant changes to corporate income tax

The Spanish Government approved Royal Decree-Law 3/2016 that introduces rules aimed at increasing tax revenues in Spain on December 2. The changes affect a variety of taxes, including corporate income tax, tobacco tax and alcohol tax, as well as other general tax rules, such as those governing the deferral of tax payments. The Government has also announced the start of the parliamentary process to enact a new sugar-sweetened beverages tax bill. The main changes affecting corporate income tax and the deferral of tax payments include restrictions on the utilization of carried forward tax losses and double tax credits, non-deductibility of losses incurred on the transfer of shares in companies qualifying for the participation exemption or not subject to minimum taxation, and recapture of portfolio impairments which were taken for tax purposes in the past.

A Tax Alert prepared by EY's Global Tax Desk Network, attached below, provides additional details.

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Full text of Tax Alert 2016-2088

 

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