Please see www.deloitte.com/about to learn more about our global network of member firms. {{ vm.siteSelectorList.flyout.cell1.heading }}, {{ vm.siteSelectorList.flyout.cell1.global.countryLocale }}, {{ vm.flyout.cell1.viewAll.newTabAllow }}, Transactions performed by entities forming part of the same group of companies within the terms of Article 42 of the Spanish Commercial Code, Acquisitions qualifying for the special regime available for mergers, spinoffs, contributions of assets or exchanges of securities, as well as acquisitions arising as a result of mergers or spinoffs of collective investment undertakings or compartments or sub-funds thereof, Other acquisitions specifically included in the draft legislation, and viewed as necessary for proper functioning of the markets. In order to assess the effects that this new tax could have on the different financial intermediaries, the impact on both their business and operational model should be analyzed, identifying the areas or business lines, processes, systems and applications that might be affected and how they should be adapted to the new FTT. However, it would be the taxable person (in the place of the taxpayer) that would have to settle and pay the tax to the Treasury. The following acquisitions will also be liable for the tax: i. Director The main features of the Financial Transaction Tax (FTT) (e.g., taxable base, tax rate) remain almost unchanged from the original draft released on 23 October 2018, but the Bill includes many of the changes identified by the Banking Associations and lobbies during the public consultation. Suite 950 GM Tax Consultancy will advise you with total professionalism and proximity. The taxpayer and the acquirer will be required to keep the supporting documents evidencing the content of the notification and the fact that it was furnished to the tax authorities if necessary. Would you consider telling us more about how we can do better? The issue is currently at a standstill in Council, though the state of this matter has been regularly discussed at the ECOFIN. Click anywhere on the bar, to resend verification email. Among entities that are part of the same group. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. The following transactions will be exempt: i.         Shares of smaller AG’s and companies not listed on the stock exchange are not taxed. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. The French FTT yielded €198 million in tax revenues for August-December 2012, which is considerably less than the initial French government projection of €1.1 billion annually. Background. It should be noted that on account of the observations made during the hearing and public consultation procedure, there is no longer any need for acquisitions and transfers to have been made on the same trading venue. iv. On 16 October 2020, the bill on the Spanish financial transaction tax (FTT) was officially enacted into law and published in the official state gazette (BOE). This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. Cookies  |  ii. {{vm.newUser3}} The different Banking Associations claimed an extension of the “go live” period (for instance, of six months) during the public consultation but this has not been accepted. Given that the Spanish FTT is similar in scope to the French FTT, the IAFR’s revenue estimate seems more realistic. Where the consideration amount is not expressed, the tax base is the closing value that the security had in the most relevant market in terms of liquidity of the relevant security on the day preceding the transaction. Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. In accordance with the provisions of the Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014, on markets in financial instruments. Executive summary. iv. Sign up for tax alert emails    TNU homepage    Tax newsroom    Email this document    Print this document, Spain sends bill on Financial Transaction Tax to Parliament. Lastly, the Bill establishes various situations of joint and several liability. Find out more, Spain issues draft bill on Financial Transaction Tax, European Commission issues new Financial Transaction Tax proposal. For the first year of application, the list will be determined one month before the entry into force of the tax and will also be published on the Spanish tax authorities’ website. At the cabinet meeting in February, the coalition of the socialist PSOE and the left-wing alternative Unidas Podemos decided to introduce a Tobin tax on share purchases and sales. Spain has approved a new Financial Transaction Tax, which will come into force on 16 January 2021. ii. Rather, a reference is made to the general penalty regime of the Spanish General Tax Law. Derived from the issuance of shares and public offerings of sale (IPOs and IPs), as well as the instrumental acquisitions prior to said operations made by placers and insurers. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. Get all the latest global tax news and analysis sent directly to your inbox. DTTL and each of its member firms are legally separate and independent entities. When acquisitions are executed in a trading venue, the accrual occurs upon the trade date, unless the trade is not finally settled. KPMG International and its member firms are legally distinct and separate entities. The name refers to James Tobin, a US economist and Nobel Prize winner, who in the 1970s proposed that all international financial transactions be subject to a tax. Tax Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. This paragraph includes all novations performed by a central counterparty as well as the transactions performed in the context of a repurchase due to a settlement failure. Read text of the legislative proposal (Spanish) [PDF 170 KB]. However, the Spanish tax would not be identical to the French or Italian models, which themselves differ with respect to each other. For instance, it is clarified that the FTT taxpayer is the acquirer of the Spanish shares and that the financial entity is only acting as a substitute when acting on behalf of the acquirer of shares (the financial entity would be the taxable person), meaning that the tax could be charged back to the clients. After receiving several comments from different associations and lobbies, the Spanish Council of Ministers approved the final Bill, which was submitted to the Spanish Parliament for discussion and approval. The tax liability would be calculated and settled by means of a monthly self-assessment. Depending on the type of application, the following must be identified: the issue or IPO, the entity acting as the liquidity supplier, the group of companies, the entities involved in the financing or title transfer collateral transaction, etc. You can change the settings or get more information here. suzievans@deloitte.co.uk Acquisitions arising from the application of resolution measures adopted by the Single Resolution Board or by the competent national resolution authorities in relation to the resolution of credit institutions and certain investment services firms. Deloitte Solutions is a regulated entity with a support PSF status, and a reliable partner for your global financial reporting services. Insert CSS fragment. ➤ acquisitions carried out by financial intermediaries in the framework of a price stabilisation in the context of a stock market flotation. The levies are intended to adapt the tax system to the new economic reality. Their backing means that the European Commission can make a proposal using the mechanism of ‘enhanced co-operation’ – where a minimum of nine countries sign up for European Union legislation. In general, FTTs are levied on the trade in financial instruments such as stocks, bonds, or derivatives. In brief. Spain and Italy today added their support to calls for a tax on financial transactions. However, the tax will not accrue if the acquisition is not ultimately settled. Acquisitions of the shares mentioned above (or the aforementioned depositary receipts) arising from the execution or settlement of fixed income securities convertible into or exchangeable for such shares.

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