It proposes taxing the first 50,000 euros at 17% and the rest at 20%, compared to the current general 23%
31 ()
The Government has proposed a legal reform in Congress to progressively reduce the Corporate Tax for companies whose net turnover is less than one million euros.
Compared to the 23% that is currently taxed on these companies, the Executive proposes lowering the tax so that the part of the tax base comprised up to 50,000 euros is taxed at a rate of 17% in 2027, and the remaining 20% in 2029.
His idea is to do it gradually. Thus, for the tax period that begins in 2025, the first 50,000 euros will be taxed at 21% and the rest at 22%; and in 2026 the rates will drop to 19% and 21%, respectively. In 2027, the tax will be 17% for the first 50,000 euros, but from that figure onwards it will be taxed at 22%, a percentage that will be reduced to 21% in 2028.
“This measure aims to reduce the tax burden of microenterprises and small entities,” says the PSOE in an amendment it has registered to the bill to establish a new global minimum tax of 15% for multinational companies.
The amendment, to which Europa Press has had access, only bears the signature of the Socialist Group, but from Junts they are already advancing their support, ensuring that it is one of the measures that have been agreed upon with the majority party of the Government for the processing of the aforementioned law. .
COOPERATIVES ARE PROTECTED
The legal reform also establishes that tax-protected cooperative societies will be taxed at the tax rates resulting from reducing the new rates by three percentage points, except for the non-cooperative results that will be taxed at the rates provided for in the previous section.
Likewise, the Government proposes that credit cooperatives and rural banks also pay taxes at the new rates, compared to the 25% they were taxed before, with the aim of taking into consideration the social nature of cooperative entities and “preventing them from being harmed.” “.
At the legislative level, the PSOE proposes two other amendments to reform the Corporate Tax Law and adapt the minimum tax to the new rates of 17% and 20%.
INCREASES THE DEDUCTION IN THE CAPITALIZATION RESERVE
In another PSOE amendment that Junts also says it has agreed upon, the socialists propose strengthening the capitalization reserve of companies, a tax tool with which companies and businesses can increase their own funds.
Thus, a reform is proposed so that companies can deduct up to 20% of the amount of the increase in their own funds, compared to the current 15%. With this movement, the socialists intend to enhance business capitalization by increasing net worth, and, with this, “encourage the sanitation of companies and their competitiveness.”
THE DEDUCTION INCREASES IF PEOPLE ARE HIRED
But that 20% can increase if the company hires more people. Specifically, the deduction increases up to 23% if the workforce increases between 2% and 5%; up to 26.5% if the number of employees grows between 5% and 10%; and up to 30% if it increases by more than 10%, always with respect to the previous tax period.
Of course, the aforementioned increase in the workforce must be maintained for a period of three years from the close of the tax period to which the tax deduction corresponds.
Add Comment