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What it is

Tax changes for companies, ports, regions and road transport

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 25 November 2005. Introduced by: Gobierno.

Official title: Government bill modifying the tax regime of business reorganizations and the port system, and approving tax measures for health financing and the road transport sector.

Follow this law

Source: Congreso de los Diputados, file 121/000063· updated 11 Nov

Automatic summary, not yet reviewed

  1. Expands the deduction for international double taxation: companies can now deduct taxes paid by subsidiaries at any level, not just up to the third level, if there is a minimum 5% stake held for one year.
  2. Raises the deduction for buying new industrial or commercial road transport vehicles that reduce air pollution from 10% to 12%.
  3. Aligns the special regime for mergers, spin-offs, asset contributions and share exchanges with Directive 2005/19/EC: it covers moving the registered office of a European Company or European Cooperative, adjusts the definition of partial spin-off, and extends tax deferral to partners under income attribution regimes.
  4. Gives the autonomous regions more power to set tax rates on the Special Tax on Certain Means of Transport and on the retail sales tax on certain hydrocarbons, setting the applicable rate bands.
  5. Approves a 75% rebate on the Insurance Premium Tax during 2006 for insurance covering urban and road public transport of goods or passengers.
  6. Sets a 50% rebate on the Economic Activity Tax for road transport for 2006 and 2007, with the State compensating city councils and provincial councils for the lost revenue.

Who it affects

  • Spanish companies with foreign subsidiaries: They can deduct more foreign taxes paid under corporate income tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings..
  • Road transport companies: They benefit from a larger deduction for eco-friendly vehicles, a 75% insurance premium tax rebate in 2006 and a 50% economic activity tax rebate in 2006 and 2007.
  • Autonomous regions: They gain power to set rates on two taxes that fund health care.
  • State ports and Port Authorities: Their corporate income tax rate is set and their port fees are regulated as taxes.
  • Insurers and city councils: They must apply the approved rebates and adjust or be compensated for the affected amounts.

Words worth knowing

Doble imposición internacional (international double taxation)
When the same profit is taxed in two different countries. The law allows deducting part of what was paid abroad.
Fusión y escisión (merger and spin-off)
Transactions where a company merges with another or splits its assets among several.
Canje de valores (share exchange)
Swapping shares in one company for shares in another.
Régimen de atribución de rentas (income attribution regime)
Structures like joint ownership, whose profits are shared among members and taxed on each of them.
Diferimiento fiscal (tax deferral)
Postponing tax payment until what was received in the transaction is sold.
income tax
The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced25 November 2005Someone registers the text in the Congreso.
  2. Admitted29 November 2005The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendments2 December 2005Groups propose changes.
  4. Committee15 February 2006A committee goes through the text in detail.
  5. Plenary15 March 2006All 350 deputies vote.
  6. Senate23 March 2006The Senate can pass it, amend it or veto it.
  7. BOE22 June 2006It is published in the Official State Gazette (BOE) and comes into force.
See the 13 official steps on a timeline
Nov 2005Dec 2005Jan 2006Feb 2006Mar 2006Apr 2006May 200611. 25 November 2005: Presentación22. 29 November 2005: Comisión de Economía y Hacienda Publicación desde 29/11/2005 hasta 02/12/200533. 29 November 2005: Calificación44. 2 December 2005: Comisión de Economía y Hacienda Enmiendas desde 02/12/2005 hasta 15/02/200655. 15 February 2006: Comisión de Economía y Hacienda Mesa - Calificación desde 15/02/2006 hasta 15/02/200666. 15 February 2006: Comisión de Economía y Hacienda Debate de totalidad desde 15/02/2006 hasta 23/02/200677. 23 February 2006: Comisión de Economía y Hacienda Informe desde 23/02/2006 hasta 28/02/200688. 28 February 2006: Comisión de Economía y Hacienda Aprobación con competencia legislativa plena desde 28/02/2006 hasta 14/03/200699. 14 March 2006: Comisión de Economía y Hacienda Dictamen desde 14/03/2006 hasta 15/03/20061010. 15 March 2006: Pleno Aprobación desde 15/03/2006 hasta 23/03/20061111. 23 March 2006: Senado desde 23/03/2006 hasta 24/05/20061212. 24 May 2006: Pleno Enmiendas o veto del Senado desde 24/05/2006 hasta 22/06/20061313. 22 June 2006: Concluido - (Aprobado con modificaciones) desde 22/06/2006 hasta 05/09/2006

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

The same initiative in the other chamber:

Published in the BOE: Act 25/2006, of July 17, amending the tax regime of business reorganizations and the port system and approving tax measures for health financing and the road transport sector.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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