WITH the so-called Google Tax due to be introduced in Spain in April of 2021 despite threats of further tariff increases of Spanish goods into the USA, some social media companies are already settling previous year’s debts so that they don’t get penalised with higher future taxes.
The most recent example is Facebook Spain which following a formal inspection of its books by the Spanish Tax Agency has agreed to pay €34.4 million back tax to cover 2013 – 2018 but this is a tiny amount when compared to 2019 turnover in Spain of more than €260 million.
With a new US President due to takeover from Donald Trump in January it seems less likely that America will use tariff increases to protect its major social media companies so having seen the ‘writing on the wall’ the Facebook European head office based in Ireland is making sure that taxes are up to date.
In the long run, when coupled with the Tobin Tax which charges 0.2 per cent tax on all share transactions on company’s worth more than €1 billion which takes effect in January, the Spanish Government expects to earn around €960 million (down from its original estimate of €1.2 billion).
Thank you for taking the time to read this news article “New Spanish taxes on large companies confirmed for 2021”.