The Treasury studies to apply a minimum rate of 18% to the banking

The Treasury studies to apply a minimum rate of 18% to the banking

The financial entities and the oil companies, now taxed with 30% in the Corporation Tax, would pay more than other companies because the minister believes that it is "fair" to maintain the "progressivity"

  Shortly after starting in office, Finance Minister María Jesús Montero revolutionized the Ministry by announcing a battery of new taxes for large technological , environmental or banking companies, as well as remodeling existing ones. Montero raised a minimum "real" rate of 15% for large companies, which despite having set the tax rate at 25% for Corporate Tax, thanks to deductions actually pay "around 7%" of their profits , the minister said then.

  Months later they begin to specify a little more these measures -criticated by practically all those affected- and the Ministry has confirmed on Wednesday that they analyze a minimum rate in the Corporation Tax of approximately 18% for companies that are currently taxed with the 30 % , which are the banks and oil companies. The step from 15% to 18% is given to "maintain the progressivity of the tax", assure the daily Hacienda sources.

In this way, the Executive brings the figure to that required by Unidos Podemos to support the Government in the General Budgets, which put on the table a minimum rate of 20% for banking . If these plans succeed, Spanish companies could not apply deductions that lower the 15% effective rate they pay in their Corporate Tax, and 18% in the case of banks and hydrocarbons companies.

Yes, from the Ministry do not speak yet of what will be the collection that is expected with the rise of this tax for banks and hydrocarbons companies. They say that this is what they are working on right now. Speaking at the Congress, Montero has indicated that the tax package that is being negotiated with Podemos to get its support for the 2019 Budgets could be closed "in a short time".

Double stage

Also, he recalled that the Treasury will not touch the income tax for income below 140,000 euros per year and noted that the Ministry is working right now with two fiscal consolidation paths to prepare the budget draft that must be sent to the EU before October 15, the one of the Government of the PP less flexible and the proposal by the socialist Executive agreed with Brussels.

The idea of ​​the Government is to present the Budgets at the end of November, after sending the basic points of the project to Brussels in mid-October. Precisely the content of this draft will be subject to the progress made in the processing of the new deficit path , and that is why the two scenarios are being managed.

"We work on both possibilities, in different plans depending on whether the processing of the reform of the Stability Law is in advanced course in its parliamentary procedure, or on another path if it was not advanced," Montero assured Congress after confirming that in no case does it shuffle the hypothesis of "not taking the Budgets forward" for an electoral advance.