A new Spanish Budget Law for 2014 was passed on Dec. 23, reminding us that some of the temporary measures undertaken in 2012 and 2013 will continue in force in 2014.
Although there are signs to believe that our economic environment is now in better shape than it was at the beginning of 2013, a big set of tax measures is still expected in 2014. A group of experts is currently working on the reform of the whole Spanish system, which might become public during the first semester of 2014.
We will be happy to carry on working to keep you posted on any new tax matter. In the meantime, let us wish you a very happy new year 2014
✔ The new Spanish Budget Law has extended to 2014 the application of:
- The increased rates in: (i) Personal income tax, affecting the general scale as well as the reduced scale applying on savings income; (ii) the withholding tax rates; and (iii) Non-residents tax.
- Net worth tax: a 100% tax relief is expected for 2015.
- The increased rates applying on the Corporation advanced tax payments.
✔ On the positive side, it has also extended the treatment of expenses and investments made to promote the use of new technologies by employees (not treated as fringe benefit) as well as a reduced Corporation tax rate for micro companies maintaining or creating new jobs.
✔ Although it is a bit too early to know the exact terms of the 2014 reform, since there is not much information available, we expect that it will reduce the number of tax rates sections in the Personal income tax scale, the nominal Spanish Corporation tax rate to align it with those applying in other EU countries or encourage private savings plans.