Spain: Proposed progressive decrease of withholding tax rate

The Spanish government has presented a proposal to amend income and corporate tax, including, among other things, a progressive decrease of the withholding tax rates applied to interest and dividend payments.

If approved, the tax rates will be decreased from the current 21% to 20% in 2015 and from 20% to 19% in 2016.

The proposed reform is expected to be published for public consultation before a final version is submitted to Parliament, who may decide to amend the draft law or to reject it.

We continue to monitor the market and will provide more information as it becomes available.

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.