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  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/28/2013

Spain - Changes to corporate income tax, VAT, individual taxation 

January 28: New laws in Spain include various tax measures aimed at consolidating public finances and promoting economic activity. Among the tax provisions enacted are measures affecting almost all taxes in Spain—including the corporate income tax, individual income tax, net wealth tax, non-resident income tax, value added tax (VAT), transfer tax, stamp tax, excise taxes, and local taxes.

The changes are provided by Law 16/2012 (27 December 2012) and Law 17/2012 (27 December 2012).


Some of the provisions concern revaluation of corporate assets that may affect a company’s financial statements.

Corporate income tax measures

Among the provisions concerning Spain’s corporate income tax are the following measures:


  • A temporary limit on tax-deductible depreciation for “large” companies (i.e., net sales for the 12-month period prior to the subject tax year of €10 million or more) in the tax periods beginning during 2013 and 2014
  • Limit on deductibility of expenses derived from terminating employment or mercantile relationships
  • Reduced corporate income tax rate for “small” companies with respect to job creation or staff-level maintenance (extended through 2013)
  • Expense and investment deductions for employee training and communication technology (extended through 2013)

Value added tax (VAT) measures

The following are some of the VAT changes contained in the new legislation:


  • Real estate distributed by a partnership to partners, in proportion to their partnership interests, is a VAT-able delivery of goods
  • VAT accrued prior to a declaration of bankruptcy cannot be modified after bankruptcy filing
  • Rules for VAT accrual for certain intra-EU operations are modified
  • New invoicing requirements
  • VAT-exemption rules for entities providing certain social services
  • Modifications in the VAT exemption relative to financial lease contracts

Individual (personal) income tax measures

  • Capital gains / losses derived from transfer of assets, held by the taxpayer for one year or less, no longer part of "savings taxable base" and to be added to general individual income tax base
  • Changes to the rules for valuing in-kind remuneration of housing
  • Change of tax residence requires individuals to include amounts in income from pending imputation of gain
  • Changes to income rules concerning pension commitments
  • Changes to the net wealth tax

Read a January 2013 report [PDF 193 KB] prepared by the KPMG member firm in Spain: New Tax measures introduced by Laws 16/2012 and 17/2012, dated 27 December



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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.
 

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