Junts agrees with the Government a tax reduction of 9.000 million for companies

Yesterday, Government reached an agreement Tax Reform with his political allies, establishing a series of Tax benefits for SMEs and micro-SMEs. According to Treasury, this measure could mean a Tax relief of up to 9.000 billion euros over the next five years. This initiative responds to the demands of together, which requested the PSOE introduce modifications to reduce the Corporation tax for small businesses and eliminate the tax burden on energy companies, among other points. Catalan SMEs, in particular, will benefit from a Tax cuts of around 2.500 billion euros.

These amendments provide that Companies with net income less than 1 million euros will see a decrease in the corporate tax rate, currently at 23%. In addition, Companies with a turnover between 1 million and 10 million euros will experience a gradual reduction in corporate tax from 25% in 2025 to 20% in 2029. They will also be able to deduct an additional 20% from your tax base in case of increasing its workforce.

Companies with revenues over 10 million They will also have deductions for staff increases, as a measure to encourage the growth of these companies. The reform establishes that the SMEs with less than 1 million euros in revenue They will be able to obtain a 21% reduction on the first 50.000 euros of profits in 2025, with the rate gradually falling to 17% in 2027, while the rest of their profits will also be taxed progressively downwards.

FOR Those companies with less than 1 million in turnover, a is introduced special deduction for capital reinvestmentIf they increase their workforce by 2-5%, they will enjoy a 23% bonus on their tax base; if the increase in staff is 5-10%, the bonus will be 26,5%, and if it exceeds 10%, they will obtain a 30% deduction, limited to 25% of the tax base. This Tax Reform, which will come into force on January 1, 2025 and will run until December 31, 2029, represents a step towards a Progressive taxation to benefit small business growth.