The IEE denounces the excessive tax strain on corporations in Spain | Economy | EUROtoday

Tax assortment in Spain as soon as once more set a historic document in 2023. It already exceeds the figures of 2019, the 12 months earlier than the pandemic, by round 50 billion euros. The Institute of Economic Studies (IEE), the examine heart of the enterprise affiliation CEOE, which this Wednesday introduced its Fiscal Competitiveness 2023 report, has criticized the “harsh” tax burdens on corporations. The doc signifies that the tax strain in Spain has already reached 38.3% in 2022, 3.8 share factors lower than the European Union common, in accordance with Eurostat information, a spot that has been lowering in recent times. “This does not say anything positive about how the economy is evolving in the country,” mentioned Iñigo Fernández de Mesa, president of the IEE, within the presentation.

One of the primary taxes emphasised within the report is the company tax. In Spain it represented 2.7% of the GDP and Social Security contributions 9.5%. For its half, the EU common is 3.3% in taxes on the enterprise sector and seven.1% in social contributions. The doc provides the load of the 2 taxes and concludes that in Spain the burden is 1.8 factors above the European common.

The evaluation carried out by assume tank The employers' affiliation exhibits that in Spain social contributions to Social Security characterize 25.2% of the entire collected, whereas within the EU the common is 17.7%. On the opposite hand, company tax represents 7.2% of the entire, 9 tenths lower than the common for the Twenty-Seven.

The group defends that the fiscal effort – not like the fiscal strain, it takes into consideration the distinction within the relative earnings ranges of the totally different nations – in Spain is nearly 18% increased than the European Union common. Fernández de Mesa has criticized that it is without doubt one of the OECD nations with the best tax burden. “Among the large advanced economies, none present a greater effort than our country,” he mentioned throughout the presentation of the examine.

The Tax Competitiveness Index calculated by the IEE signifies that Spain, in 2023, was among the many OECD economies with the worst tax competitiveness and highlights that there was a robust decline over the last legislature. According to this indicator, Spain was positioned, by way of tax competitiveness, in place 31 of the 38 nations analyzed, three positions above the earlier 12 months, however eight positions decrease than the twenty third place it occupied in 2019. “This signifies a notable lack of fiscal competitiveness in our nation, reflecting the impact of tax will increase on corporations and entrepreneurs, a pattern that the Government appears decided to take care of with steady tax will increase.”

Corporate taxation and asset taxation

The report attacks taxation on companies, ensuring that it is one of the six most burdensome in the OECD, with pressure almost 30% higher than the European Union average. On the other hand, it denounces that property taxation is the second worst in the OECD, only behind Italy, 39.6% less competitive than that of the EU and 37.3% below the average of the club's body. advanced economies. Regarding personal income tax, the most powerful tax in the system, the document indicates that it represents a burden 6.1% higher than the EU average and 2.2% above the OECD average.

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