Spain’s PM Proposes Minimum Corporate Tax Burden
Spanish Prime Minister Pedro Sanchez has pledged to reform Spain’s corporate tax rules so that companies pay an effective rate no lower than 15 percent.
Laying out the new Socialist Government’s two-year economic plan before parliament on July 17, Sanchez proposed that, by restricting the use of deductions, he would attempt to ensure that companies pay effective corporate tax rates closer to the headline rate of 25 percent.
Sanchez also said that the Government intends to crack down on tax avoidance and evasion by legislating to prevent the further use of tax amnesties and by drawing up a new list of jurisdictions considered by the Government to be “tax havens.”
Sanchez became Prime Minister on June 2 following a vote of no-confidence in his predecessor Mariano Rajoy, although the Socialist Party holds just 84 seats in Spain’s 350-seat assembly. Sanchez has promised to dissolve parliament and call fresh elections.