On June 30, the Bill on measures for the prevention and fight against tax fraud was approved, incorporating all the amendments introduced by the Senate. The law is now ready to enter into force the day after its publication in the Official State Gazette, with some exceptions.
We inform you that the Plenary Session of the Congress of Deputies has approved the Draft Law on measures for the prevention and combating of tax fraud, transposing Council Directive (EU) 2016/1164 of 12 July 2016, which establishes rules against tax avoidance practices that directly affect the functioning of the internal market, and amending various tax regulations and gambling regulations. This law regulates tax reforms to prevent and combat tax fraud.
In the plenary session this Wednesday, June 30, the government initiative was approved with the incorporation of all amendments introduced by the Senate. Thus, the law is ready to enter into force the day after its publication in the Official State Gazette (BOE), with some exceptions.
The text outlines the tax penalties in taxes related to real estate, such as Transfers, Inheritances or Wealth.
Furthermore, the measures included in the text include a reduction in the cash payment limit for certain economic transactions, from €2,500 to €1,000, for transactions involving a business or professional. Additionally, the cash payment limit is lowered from €15,000 to €10,000 for individuals with their tax residence outside of Spain.
Furthermore, the new regulation includes a legal prohibition on tax amnesties.
Furthermore, the text lowers the debt threshold for inclusion on the tax debtors list from one million euros to 600,000 euros. The tax authorities will also include jointly liable parties, such as family members or business partners, on this list.
This bill also adapts the term "tax havens" to that of "non-cooperative jurisdictions." In this regard, and once the criteria of fairness and transparency have been approved, the Minister of Finance "will adopt the necessary provisions for the publication of the list of countries and territories, as well as detrimental tax regimes, considered non-cooperative jurisdictions, which must be updated periodically."
Two new reporting obligations are established: regarding the balance held by holders of virtual currencies and regarding the operations on said currencies (acquisition, transmission, exchange, transfer, collections and payments) in which they participate.
Likewise, the taxable base for the Property Transfer Tax and Stamp Duty, as well as the Inheritance and Gift Tax, is modified , replacing the concept of real value with that of "value of assets and rights," the latter being considered, except where special rules apply, to be the "market value." However, if the value declared by the interested parties is higher than the market value, that amount will be taken as the taxable base.
On the other hand, with regard to the Economic Activities Tax (IAE), the regulatory references for considering a group of companies are updated and it is clarified that the rule for calculating the net amount of turnover must be applied regardless of the obligation of accounting consolidation.
Regarding gambling regulation, this bill includes mechanisms for preventing and combating the manipulation of sporting competitions, aiming to address fraud in sports betting. It expands the range of entities to which the gambling regulatory authority can request information, and introduces new types of offenses or modifies existing ones to penalize fraudulent practices by participants, operators, suppliers, and intermediaries, among others.
Senate Amendments
- Following the passage of this initiative through the Senate, an amendment has been approved regarding the subrogation of acquisitions and the transitional regime applicable to transfers of assets made after the entry into force of this law.
- In addition, Congress has given the green light to the Senate amendment on gratuitous transfers due to death arising from contracts or succession agreements with present effects.
- On the other hand, the transitional regime regarding surcharges, reduction of penalties, limitation of cash payments and transfers of certain assets has been approved; and the "Transfer of assets previously acquired by certain succession agreements" is added to "the transfers of assets made after the entry into force of this Law that had been acquired gratuitously due to death by virtue of contracts or succession agreements with present effects.".
- Among the changes introduced in the Senate amendments is the reform of the temporary suspension of the statute of limitations for actions and rights provided for in tax regulations due to Covid. Now, the law limits the effects of this measure to those statutes of limitations that, without taking into account said suspension, end before July 1, 2021.
- Regarding the Special Tax on Certain Means of Transport, and with effect until December 31, 2021, the headings that determine the tax rates applicable to different vehicles are modified.
- Furthermore, a provision is added regarding public employment offers in the State Tax Administration Agency, the State Comptroller General's Office, the Economic-Administrative Courts, and the Directorate General of the Cadastre. This section establishes a six-month period for the Government to issue the necessary regulations so that, within eight years, the ratio of tax administration staff to the number of taxpayers approaches the European average.
- The approved changes also affect the transitional regime on the transfer of assets previously acquired through certain succession agreements.
We will keep you informed of all the new developments approved by this Law, once the regulation is published in the BOE (Official State Gazette).
You can contact this professional office for any questions or clarifications you may have.
Warm regards,
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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