The future "Financial Transaction Tax".

WHAT IS THE FINANCIAL TRANSACTION TAX?

It is an indirect tax that is planned to levy 0.2% on acquisitions for consideration of shares representing the share capital of companies of Spanish nationality.

WHAT REQUIREMENTS MUST BE MET TO APPLY IT?

The acquisition of shares will be subject to tax when the following conditions are met:

• When such acquisitions of shares are admitted to trading on a Spanish market or on a market of another Member State of the European Union, which is considered a regulated market
• When the market capitalization value of the company is, as of December 1 of the year prior to the acquisition, greater than 000 million euros.

WHAT ARE YOUR EXEMPTIONS?

The following share acquisitions will be exempt from the tax:

Acquisitions resulting from the issuance of shares.

• Acquisitions resulting from a public offering of shares.
• Acquisitions made for instrumental purposes by placement agents and insurers.
• Acquisitions made by financial intermediaries responsible for price stabilization within the framework of a stabilization mandate, in the context of the admission of shares to the stock exchange
• Acquisitions resulting from purchase or loan transactions and other transactions carried out by a central counterparty or a central securities depository on financial instruments subject to this tax.
• Acquisitions made by financial intermediaries on behalf of the issuer of the shares in the exercise of their functions as liquidity providers.
• Acquisitions made by financial intermediaries within the framework of their market-making activities.
• Acquisitions made by financial intermediaries to cover positions held as a result of their market maker functions in derivative instruments whose underlying asset is shares subject to this tax.
• Acquisitions of shares between entities that are part of the same group.
• Acquisitions to which the special regime for mergers, divisions, and contributions of assets may apply.
• Securities financing operations, referred to in paragraph 11 of Article 3 of Regulation (EU) 2015/2365.
• Acquisitions resulting from the application of resolution measures adopted by the Single Resolution Board, or the competent national resolution authorities, under the terms provided

WHAT WILL BE ITS SCOPE OF APPLICATION?

This tax will be applied extraterritorially, regardless of where the acquisition takes place and the residence of the individuals or entities involved in the transaction. This is intended to prevent financial intermediaries from relocating their operations to evade taxes.

WHEN WILL IT COME INTO FORCE?

The text of the Draft Bill on the Tax on Financial Transactions was published on October 23 , and it is expected to come into force 3 months after its publication in the Official State Gazette.

If you require our assistance to obtain more information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.

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Francisco Romero

Tax and accounting consultant at Àmbit Assessor

With a degree in Business Administration and Finance, he combined his work as a consultant in the tax and accounting department of Gestart Assessores with his studies for ten years, primarily a degree in Business Administration and Management from the University of Barcelona. In March 2017, he joined Àmbit Assessor, SL as a tax and accounting consultant.

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