The new tax measures that will reform the tax system
Last week we had access to the main measures of the tax reform being prepared by the Government which entail an overhaul of various tax concepts, some of which also mean important changes from an employment/labor perspective, so we consider it useful to make a detailed analysis of its scope and implications.
For this reason, we have prepared a document reviewing the main reforms proposed in relation to the following items: personal income tax (IRPF), corporate income tax, nonresident income tax (IRNR), value added tax (VAT) and Canary Island general indirect tax (IGIC), excise and special taxes, General Taxation Law and other provisions in the litigation area.
The four preliminary bills approved by the Council of Ministers on June 20, 2014, which are currently in the public consultation phase, are as follows:
- Preliminary bill amending Personal Income Tax Law 35/2006, of November 28, 2006, the Revised Nonresident Income Tax Law, approved by Legislative Royal Decree 5/2004, of March 5, 2004, and other tax provisions (preliminary bill amending personal income tax and nonresident income tax);
- Preliminary bill amending Value Added Tax Law 37/1992, of December 28, 1992; Law 20/1991, of June 7, 1991, amending the tax aspects of the Canary Islands Economic and Tax Regime, Excise and Special Taxes Law 38/1992, of December 28, 1992, and Law 16/2013, of October 29, 2013, establishing certain measures concerning environmental taxation and adopting other tax and financial measures (preliminary bill amending VAT, the Canary Islands general indirect tax, and excise and special taxes);
- Preliminary bill partially amending General Taxation Law 58/2003 (preliminary bill amending the General Taxation Law).
Once the public consultation phase has ended, the passage through Parliament will begin in order for consultation to be made with labor unions, employers’ organizations and the other political parties, so it is a question of time before we can know the final texts that will constitute the tax reform in Spain and the effects the new measures will have on our economy.
Garrigues Tax Department
