Spain

Corporate - Significant developments

Last reviewed - 31 December 2019

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

  • On 29 December 2018, Royal Decree-Law (RDL) 27/2018, of 28 December 2018, which passed certain tax and rateable value measures, was published in the Official State Gazette. The main measures contained in this regulation that affect company taxes are:
    • New rules are introduced to consider the effects of the Bank of Spain Circular 4/2017, of 27 November 2017, on credit institutions’ taxable income for corporate income tax (CIT).
    • With a few exceptions, the first application of the adjustments included in Circular 4/2017 will be recorded in accounts retrospectively, and the impacts will be recorded in reserves.
    • Charges and credits to reserve accounts generated as a result of this first application will be taxable in line with general CIT regulations, even if a transitory regime is established to mitigate the tax impacts of the accounting reform.