On December 21, 2024, Law 7/2024 (LIC) was published in the Official State Gazette (BOE), which adapts Spanish legislation to the European Council Directive (EU) 2022/2523. This law implements Pillar 2 of the OECD, which obliges multinationals to be taxed a minimum of 15% in each country where they operate.
What is the main objective?
Limit downward tax competition and the race between countries to reduce corporate tax rates.
Combat base erosion and prevent the shifting of profits to jurisdictions with lower taxes.
Ensure that companies are taxed fairly, promoting a more equitable global tax system.
Who does this law affect?
Large corporate groups: Those with consolidated revenue of at least €750 million in two of the previous four fiscal years.
Scope of application: Companies established in Spanish territory (with some specificities in the regional territories).
Effective date:
The law will apply to tax periods starting from January 1, 2024.
Baker Tilly (España) es un miembro independiente de Baker Tilly International. Baker Tilly International Limited es una sociedad inglesa. Baker Tilly International no presta servicios profesionales a sus clientes.
