New regulations for 2024

Main tax changes introduced by Law 7/2024, of December 20, which establishes a complementary tax to guarantee a minimum global level of taxation for multinational groups and large national groups, a tax on the interest and commission margin of certain financial institutions and a tax on liquids for electronic cigarettes and other tobacco-related products, and modifies other tax rules

CORPORATION TAX

The Eighth Final Provision of Law 7/2024, of December 20, introduces the following modifications to Law 27/2014, of November 27, on Corporate Income Tax:

- Modification of article 15 of Law 27/2014, on Corporate Tax, “Non-deductible expenses”

With effect for tax periods beginning on or after January 1, 2024, letter b) of article 15 of Law 27/2014, of November 27, on Corporate Income Tax, is amended by Section One of the Eighth Final Provision of Law 7/2024, to establish that expenses derived from the accounting of the Complementary Tax will not be considered tax-deductible expenses.

(Article 15.b) of Law 27/2014 is modified by the eighth Final Provision of Law 7/2024)

- Amendment to Article 25 of Law 27/2014 on Corporate Income Tax, “Capitalisation reserve”

With effect for tax periods beginning on or after January 1, 2025, Section 1 of Article 25 of Law 27/2014, of November 27, on Corporate Income Tax, is amended by Section Two of the Eighth Final Provision of Law 7/2024, in order to enhance this tax incentive:

• As a general rule, from 15 to 20 percent of the amount of the increase in its equity, for taxpayers who pay taxes at the tax rate provided for in sections 1 or 6 of article 29 of Law 27/2014, provided that they meet the required conditions.
• Notwithstanding the foregoing, the percentage of reduction in the tax base, as a capitalization reserve, is linked to the increase in the average workforce of the taxpayer . Thus, taxpayers will be entitled to a reduction in the tax base:
  • From 23 percent of the amount of the increase in equity, provided that the total average workforce, in the tax period, has increased, with respect to the total average workforce of the immediately preceding tax period, by a minimum of 2 percent without exceeding 5 percent .
  • From 26.5 percent of the amount of the increase in equity, provided that the average total workforce, in the tax period, has increased, with respect to the average total workforce of the immediately preceding tax period between 5 and 10 percent.
  • When the aforementioned increase is greater than 10 percent, the reduction to which the taxpayer will be entitled will be 30 percent .
• The increase in staff must be maintained for a period of 3 years from the close of the tax period to which the reduction corresponds.
• A limit is established right to reduction of the tax base, as a capitalization reserve, such that may not exceed the following amount:
  • 20 percent of the positive tax base of the tax period prior to this reduction, to the integration referred to in section 12 of article 11 of Law 27/2014, of November 27, on Corporate Income Tax, and to the compensation of negative tax bases.
  • percent of the positive tax base of the tax period prior to this reduction, the integration referred to in section 12 of article 11 of Law 27/2014, of November 27, on Corporate Income Tax, and the offsetting of negative tax bases, in the case of taxpayers whose net turnover is less than 1 million euros during the 12 months prior to the date on which the tax period to which this reduction corresponds begins.

(Article 25.1 of Law 27/2014 is amended by the Eighth Final Provision of Law 7/2024)

- Modification of article 29 of Law 27/2014, on Corporate Tax, “Tax rate”

With effect for tax periods beginning on or after 1 January 2025, sections 1 and 2 of article 29 of Law 27/2014, of 27 November, on Corporate Income Tax, are amended by section Three of the Eighth Final Provision of Law 7/2024, as follows:

• The general tax rate for taxpayers of the Corporate Tax will be 25 percent ( article 29 section 1 )
• whose net turnover amount of the immediately tax is less than 1 million euros will apply the indicated in the following scale, unless, in accordance with the provisions of article 29 of Law 27/2014, of November , on Corporate Tax, they must pay taxes at a rate different from general rate:
  • For the part of taxable base between 0 and 50,000 euros , at the rate of 17 percent .
  • For the remaining portion of tax base , at the rate of 20 percent (Article 29 paragraph 1) .
• Entities that meet the provisions of article 101 of Law 27/2014 , of November 27, on Corporate Tax, (small entities) will pay taxes at the rate of 20 percent , except if they must pay taxes at a rate different from the general rate ( article 29 section 1 )
• The tax rates of 20 percent, 17 percent and 15 percent above, will not apply those entities that are considered to be patrimonial entities, in the terms established in section 2 of article 5 of Law 27/2014, of November 27, on Corporate Income Tax ( article 29 section 1 )
• Fiscally protected cooperative societies shall be taxed at the tax rates resulting from reducing by three percentage points the tax rates provided for in the preceding paragraphs, provided that the resulting rate does not exceed 20 percent, except for non-cooperative results which shall be taxed at the rates provided for in the preceding paragraphs. Credit cooperatives and rural banks shall be taxed at the rates set out in the preceding sections, except for non-cooperative results, which shall be taxed at a rate of 30 percent article 29 paragraph 2 ).

(Article 29, sections 1 and 2 of Law 27/2014 are amended by the Eighth Final Provision of Law 7/2024)

- Amendment to Article 30 bis of Law 27/2014, on Corporate Tax, “Minimum Taxation”

With effect for tax periods beginning on or after January 1, 2025, Section 1 of Article 30 bis of Law 27/2014, of November 27, on Corporate Income Tax, is amended by Section Four of the Eighth Final Provision of Law 7/2024, with the purpose of adapting the determination of the minimum net quota to the tax rates of Article 29, Section 1 of Law 27/2014 , of November 27, on Corporate Income Tax.

Thus, it is established that in the case of entities whose net turnover for the immediately preceding tax period is less than 1 million euros, for the purposes of determining the minimum net quota referred to in the first paragraph of section one of article 30 bis of Law 27/2014, of 27 November, on Corporate Tax, the percentage indicated will be the result of multiplying the scale provided for in section 1 of article 29 of Law 27/2014, of 27 November, on Corporate Tax, by fifteen twenty-fifths, rounded up. In the case of entities that meet the provisions of article 101 of Law 27/2014, of 27 November, on Corporate Tax (small entities) , the percentage indicated will be the result of multiplying the tax rate provided for in section 1 of article 29 of Law 27/2014, of 27 November, on Corporate Tax , by fifteen twenty-fifths, rounded up.

(Article 30 bis, section 1 of Law 27/2014 is amended by the Eighth Final Provision of Law 7/2024)

- Incorporation of the fifteenth Additional Provision in Law 27/2014, on Corporate Tax, “Limits applicable to large companies in tax periods beginning on or after January 1, 2024”

With effect for tax periods beginning on or after January 1, 2024 and not ending on December 22, 2024, the Fifteenth Additional Provision is added to Law 27/2014 , of November 27, on Corporate Tax, by Section Five of the Eighth Final Provision of Law 7/2024, establishing that taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period begins, will apply the following specialties :

• The limits established in section 12 of article 11 of Law 27/2014, in the first paragraph of section 1 of article 26 of Law 27/2014, in letter e) of section 1 of article 62 of Law 27/2014, and in letters d) and e) of article 67 of Law 27/2014, shall be replaced by the following:
  • 50 percent , when in the referred 12 months the net amount of the turnover is at least 20 million euros, but less than 60 million euros .
  • 25 percent , when in the referred 12 months the net amount of the turnover is at least 60 million euros .

• The amount of the deductions to avoid international double taxation provided for in articles 31, 32 and section 10 of article 100 of Law 27/2014, as well as the amount of those deductions to avoid double taxation referred to in the twenty-third transitional provision of Law 27/2014, may not jointly exceed 50 percent of the taxpayer's total tax rate.

(The fifteenth Additional Provision is incorporated into Law 27/2014 by the eighth Final Provision of Law 7/2024)

- Amendment to the Nineteenth Additional Provision of Law 27/2014, on Corporate Tax, “Temporary measures in determining the tax base in the tax consolidation regime”

With effect for tax periods beginning on or after January 1, 2024 and not ending on December 22, 2024, the Nineteenth Additional Provision of Law 27/2014, of November 27, on Corporate Income Tax, is amended by Section Six of the Eighth Final Provision of Law 7/2024, to extend in the years 2024 and 2025, the temporary measures in determining the tax base in the tax consolidation regime, establishing:

• With effect for tax periods beginning in 2023, 2024 and 2025 the tax base of the tax group shall be determined in accordance with the provisions of article 62 of Law 27/2014, on Corporate Income Tax, although in relation to the provisions of the first paragraph of letter a) of section 1 of said article, the sum shall refer to the positive tax bases and 50 percent of the individual negative tax bases corresponding to each and every one of the entities comprising the tax group, taking into account the specialities contained in article 63 of Law 27/2014.
  • For tax periods beginning in 2024 and 2025, the limitation on the integration of negative tax bases provided for in the previous paragraph will not apply in the case of individual tax bases corresponding to those foundations that are subject to the general regime of Law 27/2014, on Corporate Income Tax, and are part of the tax group.
• With effect for successive tax periods , the amount of the individual negative tax bases not included in the tax base of the tax group by application of the provisions of the previous paragraph, will be integrated into the tax base of the same in equal parts in each of the first ten tax periods that begin:
  • As of 1 January 2024 , when the provisions of the previous section apply with effect for tax periods beginning in 2023.
  • As of 1 January 2025 , when the provisions of the previous section apply with effect for tax periods beginning in 2024.
  • As of 1 January 2026 , when the provisions of the previous section apply with effect for tax periods beginning in 2025.

The above provisions shall apply even if any of the entities with negative individual tax bases are excluded from the group.

(The nineteenth Additional Provision of Law 27/2014 is modified by the eighth Final Provision of Law 7/2024)

- Amendment to the sixteenth transitional provision of Law 27/2014, on Corporate Tax, “Transitional regime applicable to losses due to impairment of securities representing participation in the capital or equity of entities”

With effect for tax periods beginning on or after January 1, 2024, and not ending on December 22, 2024, the sixteenth transitional provision of Law 27/2014, of November 27, on Corporate Income Tax, is amended by Section Seven of the Eighth Final Provision of Law 7/2024, incorporating a section 3 that establishes:

• The reversal of impairment losses on securities representing equity or share capital of entities that have been tax deductible in the corporate income tax base in tax periods beginning before January 1, 2013, will be integrated, at least, in equal parts into the tax base corresponding to each of the first three tax periods beginning on or after January 1, 2024.
• If a reversal of a higher amount has occurred due to the application of the provisions of sections 1 or 2 of the sixteenth transitional provision of Law 27/2014, the remaining balance will be integrated, at least, in equal parts between the remaining tax periods .
• The limits established in section 1 of the Fifteenth Additional Provision of Law 27/2014 on Corporate Tax, will not apply to the amount of income corresponding to the reversal of impairment losses integrated into the tax base of the aforementioned tax periods, provided that the negative tax bases subject to offset originated in tax periods beginning before January 1, 2021 .
• In the event of transfer of securities representing participation in the capital or equity of entities during the aforementioned tax periods , the amounts pending reversal will be included in the tax base of the tax period in which the transfer occurs, with the limit of the positive income derived from that transfer.

(The sixteenth transitional provision of Law 27/2014 is modified by the eighth Final Provision of Law 7/2024)

- Incorporation of the forty-fourth transitional provision in Law 27/2014, on Corporate Tax, “Transitional application of the general tax rate for micro-enterprises and small entities”.

With effect for tax periods beginning on or after January 1, 2025 , the forty-fourth transitional provision is added to Law 27/2014, of November 27, on Corporate Tax, by Section Eight of the Eighth Final Provision of Law 7/2024, establishing a transitional regime for the purposes of the provisions of article 29.1 of Law 27/2014 , of November 27, on Corporate Tax, in such a way that:

• Effective for tax periods beginning within 2025 :
  • whose net turnover for the immediately preceding tax period is less than million euros will apply the following scale, unless they must pay tax at a rate different from the general rate:
    • For the part of taxable base between 0 and 50,000 euros , at the rate of 21 percent .
    • For the remaining portion of tax base, at the rate of 22 percent .
  • Entities that meet the provisions of article 101 of Law 27/2014, of November 27, on Corporate Tax, (small entities) will pay tax at 24 percent , unless they must pay tax at a rate different from the general rate.

• With effect for the tax periods beginning within the year 2026 :
  • whose net turnover for the immediately preceding tax period is less than 1 million will apply the following scale, unless they must pay tax at a rate different from the general rate:
    • For the part of taxable base between 0 and 50,000 euros, at the rate of 19 percent .
    • For the remaining portion of tax base, at the rate of 21 percent .
  • Entities that meet the provisions of article 101 of Law 27/2014, of November 27, on Corporate Tax, (small entities) will pay tax at 23 percent , unless they must pay tax at a rate different from the general rate.

• With effect for the tax periods beginning within the year 2027 entities that meet the provisions of article 101 of Law 27/2014, of November 27, on Corporate Income Tax, (small entities) will pay tax at 22 percent , unless they must pay tax at a rate different from the general rate.
• With effect for the tax periods beginning within the year 2028 entities that meet the provisions of article 101 of Law 27/2014, of November 27, on Corporate Income Tax, (small entities) will pay tax at 21 percent , unless they must pay tax at a rate different from the general rate.

(The forty-fourth transitional provision is incorporated into Law 27/2014 by the eighth Final Provision of Law 7/2024)

ECONOMIC AND TAX REGIME OF THE CANARY ISLANDS

The fourth Final Provision of Law 7/2024 introduces the following modifications in sections 4 and 8 of article 27 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, with effect for tax periods starting on or after January 1, 2025 :

- Amendment to section 4 of article 27 of Law 19/94

Section of article 27 of Law 19/94, of July 6, is amended as follows:

• The possibility is incorporated that investments in land be considered as initial investments , for the purposes of materializing the reserve for investments in the Canary Islands, when they are affected the rehabilitation of protected housing, in accordance with the provisions of Law 2/2003, of January 30, on Housing in the Canary Islands, intended for leasing in favor of persons registered in the Public Registry of Applicants for Protected Housing in the Canary Islands, in accordance with the provisions of the Order of September 24, 2009, which regulates the registration regime, operation and structure of said Registry.

• The possibility is incorporated that investments in land that contribute to the improvement and protection of the environment in the Canary Islands may be considered as an acquisition of tangible fixed assets, which cannot be considered as an initial investment, for the purposes of materializing the reserve for investments in the Canary Islands, when it affects the rehabilitation of protected housing, in accordance with the provisions of Law 2/2003, of January 30, on Housing in the Canary Islands, intended for leasing in favor of persons registered in the Public Registry of Applicants for Protected Housing in the Canary Islands, in accordance with the provisions of the Order of September 24, 2009, which regulates the registration regime, operation and structure of said Registry.

• The indication is deleted stating that, for the sole purpose of understanding the value corresponding to the land as included in the amount of the materialization of the reservation, the actions aimed at the renovation, expansion or improvement in the case of tourist establishments will be considered rehabilitation works.

• The possibility is incorporated that the materialization of the reserve for investments in the Canary Islands in the subscription of public debt securities of the Autonomous Community of the Canary Islands, of the Canary Islands Local Corporations or of their public companies or Autonomous Organizations, be destined to finance investments in the rehabilitation of protected housing intended for leasing in favor of persons registered in the Public Registry of Applicants for Protected Housing in the Canary Islands.
• that the materialization of the reserve for investments in the Canary Islands in the subscription of securities issued by public bodies, be destined to the rehabilitation of protected housing intended for leasing in favor of persons registered in the Public Registry of Applicants for Protected Housing in the Canary Islands.

(Article 27.4 of Law 19/94 is amended by the Fourth Final Provision of Law 7/2024)

- Amendment to section 8 of article 27 of Law 19/94

Section of article 27 of Law 19/94, of July 6, is amended as follows:

• The possibility is incorporated that it may be, in the cases of leasing of real estate, of leasing of rehabilitated protected housing in favor of persons registered in the Public Registry of Applicants for Protected Housing in the Canary Islands, for the purposes of materializing the reserve for investments in the Canary Islands.

(Article 27.8 of Law 19/94 is amended by the Fourth Final Provision of Law 7/2024)

por la que se establecen un impuesto complementario para garantizar un nivel mínimo global de imposición para los grupos multinacionales y los grupos nacionales de gran magnitud, un impuesto sobre el margen de intereses y comisiones de determinadas entidades financieras y un impuesto sobre los líquidos para cigarrillos electrónicos y otros productos relacionados con el tabaco, y se modifican otras normas tributarias.(BOE, 21-diciembre-2024)