Much noise, but little collection. The 400 million euros that in a more than generous forecast the Ministry of The Treasury has calculated that it will provide the establishment of a minimum rate of 15% in Corporation Tax pale before the expected evolution of tax benefits in the tribute for the year 2022, which will save Spanish companies 1.8 billion euros in taxes, four times more than the expected impact of this minimum rate of 15% that has become one of the star measures of the General State Budget project for 2022.
After a series of confusing messages, the Treasury has also clarified this Wednesday that the resources that come out of the application of that minimum rate, which the minister has directly described as an “adjustment”, will not enter the State box until the year 2023 and that barely 50 million euros will feed the State’s revenue forecast for 2022. Vice President Calviño did not want any measure to increase the tax bill of companies in 2022 and that is how it will be.
The fiscal balance of the 2022 Budget project will not be as unfavorable as it might appear from the communication apparatus that has accompanied the inclusion in it of the minimum floor in taxes paid by companies. The Treasury has discounted that next year the Tax benefits provided in the Corporation Tax will deduct 5,674 million euros of collection, well above the 3,740 million that are expected to remain in 2021. We are talking about 1,900 million extra tax savings against a planned extra expense of 400 million euros.
The State coffers will only see 50 million euros of the minimum rate of Companies in 2022.
The data is striking because tax benefits to companies will grow next year, at least according to calculations made by the Government, by 51.7%, while income from Corporation Tax will increase only by 11.8% … The Corporation Tax has around thirty tax benefits of different intensity and practically all of them contemplate for 2022 a volume of savings for companies – cost for the State – higher than that of 2021, probably because the Government expects that the next year there will be many more companies that have benefits compared to this year.
Montero acknowledged this Wednesday, at the press conference after the presentation of the 2022 Budget project to Congress, that These tax benefits are one of the main problems of the tax framework domestic and that he hopes that the work of the committee of experts will serve to put an end to this reality, which next year will subtract 5,674 million euros in Corporation Tax, as already indicated, but that as a whole drain about 42,000 million euros to the collection, practically the distance that separates us from the European average in terms of tax collection.
For three years the Ministry of Finance has been flirting with pruning the tax incentives that exist in the Spanish tax system to obtain extra resources with which to finance the spending policies that it prioritizes in its political agenda. The Independent Authority for Fiscal Responsibility has even marked the way forward to start with tax incentives that are currently less efficient. To date, the only thing that has been done has been to minimize the tax aid to individual pension plans, which previously allowed a deduction of up to 8,000 euros and which in 2022 will remain at 1,500 euros – after the snip that this was applied year that reduced the tax-deductible contribution to 2,000 euros -, and has been done more for an ideological approach than for financial reasons, since the saving of the measure has been marginal, basically because taxpayers have stopped contributing.