The Spanish Government has finally decided, which would end on 31 December, to abolish the special tax on extraordinary profits for energy companies, as well as to reduce bank profits. It is an amendment to the law that prevents the tax from becoming permanent, while agreeing with the PNV the competence of the foreign treasuries to manage the tax on banks. The PNV announced this Wednesday in a statement that the bill it has drafted with the Government of Sánchez sets a global minimum rate for multinational companies at 15%.

In recent times, the possibility that the tax on large multinational companies, with a turnover of more than EUR 750 million, has become a permanent dispute between the Spanish Government and the parties supporting it, has been strengthened on the last day of amendments to the draft bill. In recent weeks, major energy companies in the Spanish State have placed great pressure and have pointed out that “strategic investments could be at risk”, among others, Repsol President Josu Jon Imaz.

The leftist parties, EH Bildu, ERC and Sumar, have tabled their proposals against the proposed amendments to the whole. However, the PNV and Junts have been sufficient to bring forward with the PSOE legislation that benefits these multinationals.

Junts said that it will not support the perpetuation of the Renewable Energy Tax if this deteriorates the investment of EUR 1.1 billion that Repsol has in Tarragona. For its part, Repsol has also referred to Catalonia’s intentions to put pressure on the Catalan conflict. The PNV has also been in favour of repealing corporation tax, as it was the Jeltzales that reported that the amendment was accepted. In this regard, he explained in a communiqué that the Government of Spain has decided on the basis of factors beyond the activity they carry out. What is more, the Jeltzales have ensured that they would be willing to accept the continuation of the tax on energy companies if it were left to the Basque estates. “This important decision strengthens the Basque self-government,” says Aitor Esteban,

On the contrary, Imanol Pradales, president of the CAV, stated on 22 October that “these taxes are not the best option for a country’s industrial development.” Almost at the same time, the president of the PNV, Andoni Ortuzar, stated that the tax on energy companies “would involve killing the oli with water eggs”.

On the other side there are those who have asked for the perpetuation of this tax, EH Bildu, ERC and Sumar. On Wednesday they stressed that “the benefits that banks and energy companies have announced in recent months have been records”. Two weeks ago, Iberdrola President Ignacio Sánchez Galán said in English, laughing, that the tax “assumes very little in their accounts.” According to Naiz, this year Iberdrola has increased its profits by 50%.

Personal Income Tax until 2028

Several media outlets in Madrid have filtered that the bank tax will soften and not be perpetual, as it will extend until 2028. An amendment to the draft law on the creation of an overall minimum tax of 15% for large multinationals, which involved a non-tax property allowance, will allow the PSO to manage the tax on the part of the Basque estates, as agreed with the PNV.

The tax will be progressive, from 1% to 6% according to the liquidable basis, and will tax the interest and commission margin that credit institutions and credit institutions have obtained from foreign credit institutions in the Spanish State in their activities.

In addition, the Socialist Party has also made changes to eliminate the improvement of diesel versus petrol, which will materialise from 1 April 2025. This will not affect commercial gas oil. Sánchez points out that this is an environmental improvement measure that follows the guidelines of the European Commission. The PSOE has explained that "it makes no sense to promote against gasoline", referring to the environment and health.

All these changes will be put to the vote in the Congress of Deputies over the coming weeks.