By Gorka Alonso-Cuevillas, Lawyer and Head of the Tax Law Department

1. Minimum taxation in Corporate Tax and Non-Resident Income Tax (permanent establishment)

With effect for tax periods beginning on or after January 1, 2022, a minimum taxation rule of 15% is introduced in the Corporate Tax (IS). The rules of this minimum taxation are the following:

a) Scope of application

This minimum taxation will be applied by the following taxpayers:

Yo. Those whose net turnover (INCN) is at least 20 million euros during the 12 months prior to the date on which the tax period begins.

ii. Those who pay taxes in the tax consolidation regime regardless of their INCN.

However, this minimum taxation will not apply to taxpayers who pay taxes applying the following tax types:

Rate of 10% (article 29.3 of Law 27/2014, of November 27 -IS Law-) and applied by non-profit entities to which Law 49/2002, of December 23, of the regime applies. tax of non-profit entities and tax incentives in patronage.

1% rate (article 29.4 of the IS Law).

0% rate (article 29.5 of the IS Law).

Nor will this minimum taxation apply to listed public limited investment companies in the real estate market (SOCIMIS) and regulated by the provisions of Law 11/2009, of October 29.

b) Practical application of minimum taxation

Yo. Minimum liquid quota

In general, the liquid quota (understood as the result of reducing the full quota in bonuses and deductions, without it being negative) may not be less than the now called minimum liquid quota.

The minimum net amount will be the result of applying the percentage of 15% to the tax base.

To quantify the tax base, it may be reduced by the negative tax bases from previous years and with the current limits established in article 26 of the IS Law. The following reductions or increases may be applied to this tax base:

Reduction in the increase of funds allocated in the concept of level reserve regulated in article 105 of the IS Law and applicable to companies of reduced size.

Minority in the reserve for investments regulated in article 27 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands.

However:

The minimum net amount will be 10% of the tax base in the case of newly created entities that pay taxes at the rate of 15%.

The minimum liquid quota will be 18% of the tax base for taxpayers who are credit institutions, as well as those dedicated to the exploration, research and exploitation of underground hydrocarbon deposits and storage.

In the case of cooperatives, the minimum liquid quota may not be less than the result of applying 60% to the full quota calculated in accordance with the provisions of Law 20/990, of December 19, on the Fiscal Regime of Cooperatives.

For entities in the Canary Islands Special Zone (ZEC), the positive tax base on which the percentage is applied will not include the part derived from operations carried out materially and effectively in the geographical scope of this zone, which is taxed at the regulated special tax rates. in article 43 of Law 19/1994.

ii. Minimum liquid quota in case of applying bonuses and certain deductions

In the event that the taxpayer has the right to apply bonuses (including those established in Law 19/1994), the deduction for investments made by the Port Authorities (article 38 bis of the IS Law) or deductions to avoid double taxation (articles 31, 32, 100 and transitional provision 23 of the IS Law), the minimum liquid quota will be calculated as follows:

If the application of bonuses and said deductions reduce the liquid quota below the minimum liquid quota, the result of reducing the full quota in these bonuses and deductions will be considered the minimum liquid quota.

If, after applying the bonuses and certain deductions, an amount is greater than the minimum liquid quota, the remaining deductions will be applied, with the limits applicable in each case, up to the amount of this minimum liquid quota.

The deductions whose amount is determined in accordance with the provisions of Law 20/1991, of May 7, modifying the fiscal aspects of the Economic Fiscal Regime of the Canary Islands, and Law 19/1994, will be applied respecting the same limits, although the resulting liquid quota is less than the aforementioned minimum liquid quota.

Unapplied deductions may be deducted in subsequent tax periods taking into account their own specific regulations.

Thus, for practical purposes, the practical application of the new minimum net quota will fundamentally affect deductions for R&D and IT (article 35 of the IS Law), deductions for investments in film productions, audiovisual series and live shows. of performing and musical arts (article 36 of the IS Law) as well as deductions for job creation (articles 37 and 38 of the IS Law).

This minimum tax rule will also apply to non-resident income tax payers who obtain income in Spain through a permanent establishment.

2. Special regime for leasing housing in corporate tax: the bonus is reduced to 40%

With effect for tax periods beginning on or after January 1, 2022, the bonus applicable to income derived from the rental of housing obtained by companies whose main economic activity is reduced to 40% (until now 85%) the leasing of homes located in Spain and that are taxed in accordance with the special regime provided for in Chapter III of Title VII of the IS Law.

In this way, these companies will have an effective Corporate Tax rate of 15% with respect to income eligible for a bonus.

3. Reductions in personal income tax for contributions to social security systems are reduced

Yo. The maximum annual amount of contributions and contributions to social security systems with the right to deduction is reduced from 2,000 to 1,500 euros.

ii. This limit will be increased by 8,500 euros (up to a maximum of 10,000 euros) when this increase comes from business contributions or from worker contributions to the same social security instrument, if the worker's contributions equal or are lower than the business contribution. That is, it is necessary that the company's contributions be greater than or equal to those of the worker.

iii. For these purposes, the amounts contributed by the company that derive from a decision by the worker will be considered contributions by the worker.

iv. In the case of collective health insurance contracted by companies to cover pension commitments, an additional limit of 5,000 euros per year is established for the premiums paid by the company.

v. They are modified according to the financial limits of contributions and contributions to social security systems.

Finally, the maximum annual limit is reduced from 2,000 to 1,500 euros for all the reductions made by all people who pay private insurance premiums that exclusively cover the risk of severe dependency or great dependency in favor of the same taxpayer, including those of the taxpayer himself.

4. Extension of the exclusionary limits of the objective estimation method in personal income tax and the simplified and special regimes for agriculture, livestock and fishing in VAT

Starting January 1, 2022:

Yo. The quantitative limits in personal income tax that delimit the scope of application of the objective estimation method are extended based on:

The volume of full returns from all economic activities. In this case, the limit will be: Generally, 250,000 euros 125,000 euros when there is an obligation to issue an invoice and the recipient is a businessman or professional. 250,000 euros with respect to the volume of purchases of goods and services.

With regard to agricultural, livestock and forestry activities, the quantitative limit of 250,000 euros is maintained with respect to the volume of income.

ii. The VAT limits are extended for the application of the simplified regime (150,000 euros) and the special regime for agriculture, livestock and fishing (250,000 euros)

5. A new section is created in the IAE for journalists and other information and communication professionals

With effect for the year 2022 and following, a new heading is created in the IAE Rates to accommodate the activity carried out by journalists and other information and communication professionals and which until now had no classification.

For this reason, section 863 “Journalists and other information and communication professionals” is created, whose fee is 115 euros.

Taxpayers classified in this group will be authorized to obtain, process, interpret and disseminate information or content through any written, oral, visual, digital or graphic means, as well as to provide advice and execute institutional communication plans. or corporate.

6. Various

Yo. Public Indicator of Multiple Effects Income (IPREM) year 2022

Daily IPREM: 19.30 eurosMonthly IPREM: 579.02 eurosAnnual IPREM: 6,948.24 euros

ii. By 2022, the legal interest on money will be 3% and the late payment interest will be 3.75%.