close
Share with your friends

Spain: Tax measures in budget bill for 2021

Spain: Tax measures in budget bill for 2021

The budget bill for 2021 was published in the official gazette on 30 October 2020, thereby initiating the parliamentary process.

1000

Related content

The budget bill is expected to receive preference over other pending legislation, and except for unforeseen circumstances, is expected to be approved by the end of December 2020.

An increase in public spending is proposed in the budget bill that would require an increase in tax revenue of 13%. To realize the required revenue collection, the budget bill proposes the following:

  • An increase to the individual (personal) income tax with a higher rate of tax to be imposed on taxpayers with high incomes and a reduction to the general limit applicable to contributions and contributions to social security system
  • A limit of 95% of the current exemption allowed for dividends and capital gains derived from shares in resident and non-resident entities in Spain
  • An increase to the wealth tax and also a measure to make permanent this tax
  • An increase in the rate of value added tax (VAT) for sugary and sweetened beverages
  • An increase in the tax rate on insurance premiums
  • A reduction of the current discount allowed diesel fuel that in turn would  translate into an increase to the price of diesel

Read a November 2020 report (Spanish) [PDF 287 KB] prepared by the KPMG member firm in Spain

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal