The Tax Agency has published its second report Country by country, document in which it reveals that 22 large Spanish multinationals barely paid 313 million euros in Corporation Tax despite the fact that his earnings rose above 23,500 million. That is, the average effective rate on benefits paid in financial year 2107, which is the one referred to in the document, was 1.3%.
However, the combined figure of the 112 large companies with their almost 15,000 subsidiaries shows that the average effective rate paid was 17%. This involves several things. On the one hand, that the average 17% would be above the effective rate of 15% that the Government wants to impose. At this point, sources from the Tax Agency point out that it is about a figure on the joint profit and not only on the business in Spain, that is, the reasoning is not so simple. On the other hand, from the business sphere it is emphasized that the figure is already in line with what the Government intends, and that for that reason the tax increase that you intend is not supported.
And on the other hand, and in this there is evidence that is difficult to refute, that there is a “great dispersion of effective rates”since” half of the profit is concentrated in 57 multinationals that, however, only contribute 17.6% of the tax paid by the group as a whole. “Or in other words: that there are some companies that pay a rate considerable average cash and others, on the other hand, that pay very small amounts. An example of this second case is the 23 companies that, together, yielded a profit of almost 29,000 million and that paid more than 9,000 million in Companies , which represents an average rate of 31%.
Evolution with respect to the year
The work of the Treasury also shows that there is a notable evolution with respect to the average rate paid: from 12% in 2016 to the aforementioned 17%. But once again, the Tax Agency points out a caveat when carrying out this analysis: that there has been a data purge that distorts the comparison.
Thus, it points out that the total number of multinational companies analyzed has fallen from 134 to 112 “is due to the performance of statistical refinements to resolve errors in the presentation of companies, refinements consisting of excluding both surrogate entities from other filers” .
In total, the work Country by country which is framed within the parameters of the OECD concludes that “the payment of Corporation Tax throughout the world amounted to 15,017 million euros to the 112 Spanish multinationals that in 2017 had an annual turnover of more than 750 million “. Likewise, “the analysis carried out by the Tax Agency indicates that the companies analyzed”added a worldwide turnover of 806,441 million euros”.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
