Spain

Corporate - Significant developments

Last reviewed - 16 July 2020

Over the past year, the following significant amendments have been made to Spanish law on the taxation of companies:

  • Several temporary measures have been approved in response to the economic impact of COVID-19. The main non-expired measures that affect the taxation of companies are the following:
    • On 24 June 2020, Royal Decree Law (RDL) 23/2020, of 23 June 2020, was published in the Official State Gazette. The main measures contained in this RDL that affect the taxation of companies and, in particular, the automotive industry are the following:
      • Investments made in new fixed material assets (excluding real estate) that involve the sensorisation and monitoring of the production chain, as well as the implementation of manufacturing systems based on modular platforms or that reduce environmental impact, affecting the automotive industrial sector, made available to the taxpayer in 2020 may be freely depreciated with a maximum investment of 500,000 euros (EUR) and conditional on the maintenance of the average workforce for year 2019 during the 24 months following the beginning of the tax period in which the items purchased come into operation.
      • In relation to the tax credit for technological innovation, the rate of tax credit is increased to 25% during tax periods starting in 2020 and 2021 for expenses incurred in obtaining new production processes in the automotive industry value chain or substantial improvements to existing ones.
    • On 27 May 2020, RDL 19/2020, of 26 May 2020, was published in the Official State Gazette. Under this RDL, the deadline for filing of corporate income tax (CIT) returns is maintained, but those companies that, as a result of the COVID-19 situation, have not been able to approve their financial statements will be able to submit a return using the available accounting information and amend the return when the companies’ annual accounts are approved within 30 November 2020, paying late-payment interest but no surcharge.
    • On 6 May 2020, RDL 17/2020, of 5 May 2020, was published in the Official State Gazette. Under this RDL, in order to promote the competitiveness of the Spanish film and audio-visual sector in the national and international environment, tax incentives related to film production are increased with effect from tax periods commencing on or after 1 January 2020.
    • On 18 March 2020, RDL 8/2020, of 17 March 2020, was published in the Official State Gazette. Amongst other measures, it included a stamp duty exemption applicable to certain novations of credits and mortgage loans due to the COVID-19 economic impact.
  • On 5 February 2020, RDL 3/2020, of 4 February 2020, was published in the Official State Gazette. The main measures contained in this regulation that affect the taxation of companies are:
    • The transposition of Council Directive (EU) 2018/1910 of 4 December 2018 amending Directive 2006/112/EC as regards the harmonisation and simplification of certain rules in the value-added tax (VAT) system for the taxation of trade between member states. The main amendments included concern call-off stock arrangements, chain transactions, the role of the VAT identification number in the context of the exemption of intra-Community supplies, and proof of transport for the purposes of the exemption for intra-Community transactions.
    • The transposition of Council Directive (EU) 2017/1852 of 10 October 2017, on mechanisms to resolve disputes between member states when those disputes arise from the interpretation and application of agreements and conventions that provide for the elimination of double taxation of income and, where applicable, capital.