Spain: Amendments to proposed windfall profits tax on banks
Draft legislation proposes a 4.8% levy
Draft legislation proposes a 4.8% levy on banks
The government proposed amendments on 10 November 2022 to draft legislation submitted to Parliament in July 2022 proposing a temporary windfall profit tax on credit entities and credit financial establishments.
The draft legislation proposes a 4.8% levy (an annual public contribution and not a tax) on the interest margin and the commissions earned by credit entities and credit financial establishments whose earnings from such income (on a tax group-wide basis, if applicable) equal or exceed €800 million in 2019. The levy would not be deductible for corporate tax purposes, and taxpayers would not be able to charge or pass on the levy, directly or indirectly. Read an August 2022 report prepared by the KPMG EU Tax Centre.
The government has now proposed amendments to the draft legislation that seek to apply the levy to credit entities subject to direct supervision by the European Central Bank (ECB), and the Spanish branches of such banks when foreign, even if the gross interest and commissions derived by these entities or branches in 2019 did not reach the €800 million threshold.
The draft legislation is currently being discussed by the Parliament, and additional amendments may be proposed.
Read a November 2022 report [PDF 542 KB] prepared by the KPMG member firm in Spain that discusses the implications of the new regime
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