Government plans to cut corporate tax rate and scrap credits

Abstract

On January 20, the Spanish government published the draft of the second piece of the planned tax reform for 2006 (to be in force from January 1 2007). The first piece, which deals with anti-abuse measures, was also made public recently and was analyzed in a previous issue of the magazine. This new piece, which will be discussed in the Spanish parliament over the next months (in parallel with the anti-abuse one), affects not only personal income tax but also corporate income tax and non-resident income tax.