Spain Approves New Corporate Tax Plans

Spanish lawmakers have approved a new tax package that includes a three-year extension of a temporary levy on banks, aiming to ensure that large companies pay a minimum corporate tax of 15% on their profits, in line with EU regulations. This package was developed through negotiations among the ruling Socialist Party, far-left Podemos, and regional parties, amidst a divided parliament. The government has also committed to work on a permanent windfall tax on energy firms. However, plans to extend a temporary levy on energy companies were initially shelved after negotiations with the Catalan separatist party Junts. The approval process remains challenging for Prime Minister Pedro Sanchez's minority government, which relies on a coalition of parties with differing agendas. The tax reforms reflect Spain's commitment to align with OECD guidelines to prevent tax evasion by large corporations.