Spain Targets Big Firms with Minimum Tax Hike

Spain's lower house budget committee approved an additional tax on large companies making over 750 million euros. This ensures they pay at least 15% in profit taxes, following an OECD recommendation. The minority government faces challenges in getting parliamentary support for further fiscal measures.

The Spanish lower house's budget committee narrowly approved a new tax measure targeting large firms with revenues exceeding 750 million euros on Monday. This new levy requires these companies, headquartered or operating in Spain, to pay at least 15% of their consolidated profits in taxes.

In alignment with a 2021 OECD recommendation, Spain aims to ensure multinational corporations contribute a minimum corporate tax to prevent profit shifting to lower-tax jurisdictions. Supported by the ruling Socialist Party, Sumar, Catalan separatist Junts, and various regional factions, the proposal now heads to a general vote.

Prime Minister Pedro Sanchez's minority government faces ongoing legislative challenges, needing to negotiate contentious alliances for broader fiscal initiatives. The conservative People's Party and far-right Vox currently maintain strong opposition with significant parliamentary presence.

(With inputs from agencies.)