The new tax deductions for companies have generated great dust due to their limited scope, since according to the data provided by the Treasury, only 407,384 companies will benefit from the reduction in the nominal rate of Corporate Tax from 25% to 23%, when 1 .5 million SMEs are subject to this tax. In other words, only 25% of SMEs will be able to benefit from the measures and this, to a large extent, is a consequence of the difficult situation that many of them are going through.
In 2019, according to data from the Tax Agency (AET), 1,483,524 companies declared a turnover equal to or less than one million euros, but of these only 460,448 recorded a positive tax base and, according to Government data , at present the situation has been aggravated since only 407,384 would be in this situation .
Regarding Corporate Tax, sources from the Spanish Confederation of Small and Medium-sized Enterprises (Cepyme), confirm to elEconomista.es that “tax relief reaches a very limited number of SMEs and is not focused on those that are going through greater difficulties since these generate negative or positive tax bases of little amount”.
As a whole, the measure adds a scant relief of 717 euros per company (292 million/407,384 companies), which in many cases does not even cover the increase in the energy bill for a month, they say from Cepyme.
The employers confirm in this way that “the fiscal measures announced by the Government, although they represent a reaction with respect to citizens with low incomes affected by inflation, do not take into account the difficult situation that Spanish SMEs are going through .
The decrease of two points in Companies aimed only at a part of SMEs is not in line with the reality that many companies are going through, whose increased costs suffocate their liquidity and is the origin of many cases of solvency problems At Cepyme, we urge the Government to treat to prevent solvency problems, which are incipient at the moment, from weighing down a part of our business fabric”.
Save companies without problems
With these reductions in Corporate Tax, the Government is committed to trying to alleviate the conditions of those companies in a good, or not very bad, economic situation , abandoning companies that are in a more complicated context to their fate. According to Cepyme, “of almost 1.5 million companies that could benefit from declaring a turnover equal to or less than 1 million, more than 1 million of these companies would not have a positive tax base. In other words, the measure is very limited in amount and also leaves out the companies that really have problems with inflation”.
In the same way, these measures, says Cepyme, would undermine the perception of a stable country for investment and companies, which harms companies and their business climate. “At the same time, we urge the Government to make an effort similar to that being made by citizens and companies ,” they conclude.
Mark Phil is a former market analyst and consultant. Mark in his 9-year career as an analyst, worked with top market players like Prodge LLS, Westat Inc. and Precision Opinion Inc. He moved towards writing in the year 2013. In the past, he undertook several freelance projects to begin his writing profession. Mark completed his economics degree from Columbia University. Along with performing sub-editorial duties, he is also writing a book on Market analysis.
