[World Tax News ] Spain Introduces Draft Bill for Implementing Pillar 2 Global Minimum Tax and More
- Blog|News|International Tax|
- 2 Min Read
- By Taxmann
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- Last Updated on 10 June, 2024
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Editorial Team – [2024] 163 taxmann.com 217 (Article)
World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.
1. Spain introduces draft bill for implementing Pillar 2 Global Minimum Tax
The Council of Ministers, Spain, has sent the Cortes bill to transpose the European directive that guarantees a minimum global taxation of 15% for groups of multinational companies and large national groups in the European Union. The text complies with the agreement reached by the Organization for Economic Cooperation and Development (OECD) – already ratified by more than a hundred countries – to fight against the transfer of the profits of large multinational groups to places of lower taxation.
The bill establishes a global minimum tax rate for multinational business groups or large national groups whose turnover exceeds 750 million euros. The rule seeks to prevent companies from shifting profits to territories with low or no taxation, which harms Member States’ income and leads to a spiral in which countries are forced to reduce their corporate tax rates to attract investments.
The directive states that States may apply a complementary tax that taxes multinationals or large national groups that are located in their territory and do not reach a minimum tax rate of 15% in their jurisdiction. After the approval of the bill, Spain will apply this tax, which may take different configurations, complementary to each other.
2. Russian outlines conditions for reduced corporate tax rate for IT sector
The Russian Ministry of Finance recently issued a Guidance Letter clarifying the conditions for IT companies to apply the reduced corporate tax rate of 0% when using their own computer programs to provide services. This reduced rate is part of the “ultra-low tax regime” for IT companies and was lowered from 3% to 0% between 2022 and 2024, with some conditions relaxed.
The letter specifies the following:
- The reduced rate is available starting from the reporting (tax) period in which the company receives state accreditation as an information technology organization.
- The reduced rate applies if, at the end of the reporting (tax) period, at least 70% of the company’s total revenue comes from its computer programs, databases, transfer of exclusive rights, licensing, etc.
- The relevant proprietary computer programs, databases, or components must be listed in the unified register of Russian programs for computers and databases.
Additionally, the letter clarifies that income from services provided by an IT company using its own computer programs is considered received (accrued) in the tax period when the services are provided, regardless of when payment is actually received.
Source: Guidance Letter by Ministry of Finance of the Russian Federation
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