The Spanish government announced on Tuesday its intention to introduce a 15% minimum corporate tax rate for multinational companies with revenues exceeding €750 million ($814.58 million). This move is in line with an agreement reached by over 130 countries within the Organisation for Economic Cooperation and Development (OECD) to prevent large international companies from shifting profits to low-tax jurisdictions.
While Spain's headline corporate tax rate stands at 25%, numerous exceptions have allowed some companies to pay significantly lower effective rates. The new minimum rate seeks to address this issue and ensure that large multinational firms contribute their fair share to the country's tax revenue.
Budget Minister Maria Jesus Montero emphasised the importance of this measure in combating the erosion of tax bases and the relocation of profits by multinational groups to countries with lower tax rates.
This policy change reflects a growing global trend towards greater tax transparency and fairness. By aligning with the OECD agreement, Spain joins a growing list of countries committed to ensuring that multinational corporations are held accountable for their tax obligations.
