Act 27/2014, of November 27, on Corporate Tax

BOE 288, November, 28, 2014

Corporate tax has been reviewed, mainly to bring more neutrality, equality and fairness to this tax, increasing companies’ financial competitiveness, simplifying the process and adapting Spanish regulations to Community law. Most of the provisions in this new act are effective for tax periods starting January 1, 2015. The main new aspects are the following:

  • Taxpayers: for tax periods starting in 2016, civil companies (sociedades civiles) are liable for this tax.
  • Regulation to increase the taxable income for this tax is reviewed.
  • Administrators’ remuneration: it establishes the deductibility of remuneration  for performing duties other than those of the administrator post.
  • Related transactions: it simplifies documentation, restricts related transactions and amends the sanctioning system.
  • Negative taxable income: compensation for 2014 is maintained in 2015; from 2016 onwards, it establishes a single percentage for maximum compensation, with an excess of €1 million.
  • Mechanisms for avoiding double taxation have changed: the treatment of income deriving from resident and non-resident interests will be comparable.
  • Incentives for performing certain activities: deductions for environmental investment and for the reinvestment of extraordinary profit are eliminated, while the regulation for the deduction for investment in cinematographic creations is amended.
  • A tax benefit for capitalization reserves is created.
  • New aspects are included in the tax consolidation system and special system for mergers and spin-offs.