At the and of 2014 a global tax reform was implemented in Spain. Corporate income tax legislation was modified too by the approved Act 27/2014 of November 17th regarding Corporate Income Tax.
INTERESTS’ RATE LOWERING.
Spanish legislator decided to reduce a Corporate Income Tax overall rate from 30% to 25%, but not immediately, because during the 2015th the rate is kept at 28%.
CEO’S FEES TAXATION.
From January 1th of 2015, the rate detained in favour of Personal Income Tax for those people occupying the post of CEO was lowered from 42% to 35%. In addition, the fees received by them as a result of activities going beyond of the term “management company” will be able to incorporate to the list of corporate expenses for its deduction unlike that was previously to the reform.
NEW TAX AGENTS.
For the first time Civil Corporations (corporations with no share capital), were included in the list of tax agent for the Corporate Income Tax, as opposed to the previous regulation, where the tax liability of this form of corporation depended on the income component of each participant. There is a reasonable assumption that the new regulation contributes to the rapid disappearance of this form of corporations, because its shareholders have solidary liability before third parties for the company’s with they own patrimony.
NEW EXPENSES’ DEDUCTIBILITY RESTRICTIONS.
From now deduction of expenses to improve the services of remote customer attention cannot exceed 1% of company’s market share. As well as some news having place in regard of the financial expenses tax deduction.