The Spanish Tax Administration has published prior public consultation on the transposition into Spanish law of Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union (Pilar 2).
Directive (EU) 2022/2523 establishes a top-up tax for multinational groups with consolidated income of more than 750 million euros through two interlocked rules, (i) the Income Inclusion Rule (IIR) and ( ii) Undertaxed Profit Rule (UTPR), in support of the former, which guarantee that the income obtained by said multinational groups located in Member States of the European Union or by multinational groups whose parent company is located in a Member State of the European Union (in the latter case, whether the group companies are located in the European Union or outside it) effectively pay a global minimum rate of 15%.
Regarding subsidiaries in Spain of this type of groups, it must be noted that if the UTPR rule applies to its group because it is located in a non-EU country that does not apply an admissible IIR, or in a country with low taxation, they will be taxed by said top-up tax.
In principle, it is proposed that the transposition of Directive (EU) 2022/2523 be carried out through its own standard of legal rank, and it must be in force on December 31, 2023 for it to be applied to the tax periods that begin on or after that date, in practice in 2024, although the UTPR rule will apply for tax periods that begin on or after December 31, 2024, in practice on January 1, 2025 .
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