The reconfiguration of the bank tax, the new tax on large energy companies, still pending validation by Parliament, the return of VAT on electricity and food to its pre-inflationary crisis levels, and the minimum rate of 15% in the Corporate Income Tax for large corporations will mark this 2025 in tax matters.
The tax reform is one of the projects that has been most difficult for the Government to move forward in this legislature, as it has had to face tough negotiations with the parliamentary groups from the very beginning. In fact, the law managed to get through its passage through Congress, but renouncing measures that the Government wanted, such as raising the tax on diesel -which is still being negotiated-, regulating the regime of the socimis or taxing luxury cars, airplanes and yachts. Apart from the application of the minimum rate of 15% to large multinationals, one of the most relevant aspects of this reform, on which a disbursement of 7,200 million Euros of European funds depended, a reconfiguration of the tax on banking is also contemplated. This will change from being a patrimonial benefit to a tax, which means that the regional treasuries and the autonomous communities will be able to manage it. The tax will have a progressive rate on the interest and commission margins of each entity, which will be 1% up to 750 million, 3.5% up to 1,500 million, 4.8% up to 3,000 million, 6% up to 5,000 million and 7% from 5,000 million onwards.
Energy rate
Although still pending validation in the Cortes, an approval that is not assured, given the opposition of groups such as the PNV or Junts, during 2025 the new temporary tax on energy would come into force, which will have a maximum bonus of 60% for companies that invest in decarbonization activities and with the commitment to convert it into a tax that can be managed by the regional treasuries. Investments that are “essential” for the ecological transition and decarbonization and that, due to their magnitude, contribute to economic growth and employment, whether they are made in fixed or technological assets committed to industrial projects, will be considered as such. Such investments can range from the production of renewable hydrogen to transforming waste into products that have a second life or into renewable gases, such as biogas. The initial idea of the Ministry of Finance was to extend the tax that was in force until December 31 this year, a commitment made with ERC, Bildu and BNG. But that tax was repealed last Saturday with the entry into force of the tax reform, which included a provision for that purpose that managed to prosper in the Cortes by the support of PP, PNV and Junts, which forced the Government to approve last Monday a decree to reinstate the tax, still pending validation.
VAT on food and electricity
The measure that is certain to lapse as of January 1 is the reduction of VAT on basic foodstuffs, olive oil and pasta and seed oils. Throughout 2024, the rate of this tax has been recovering its level and it is expected that this Wednesday it will already register its usual percentages. From October 2024 until December 31, the rate for basic foodstuffs — bread, eggs, vegetables or fruit — and olive oil is 2%, while the VAT for pasta and seed oils reaches 7.5%. With the new year, and in view of the significant moderation of prices after the inflationary crisis, VAT on basic foodstuffs will return to 4% -the super-reduced rate-, while that on pasta and seed oils will return to 10% -the reduced rate applied to foodstuffs-. In addition, the VAT on olive oil will be 4% -the super-reduced rate- as from January 1, instead of the 10% it had been charged in the past. The tax reform also included lowering the VAT on milk products to 4%. As far as electricity is concerned, the main novelty that the consumer’s pocket will notice as from Wednesday will be the now permanent return to 21% in the Value Added Tax (VAT) levied on electricity bills.
Electronic cigarettes
For its part, a new tax on liquids for electronic cigarettes and other tobacco-related products, which was included in the tax reform, will come into force on April 1, 2025. In addition, the deduction for works to improve the energy efficiency of housing has been extended until December 31, 2025, which allows taxpayers a deduction in the IRPF of 20%, 40% and even 60% of such works. For its part, the deduction for the acquisition of plug-in electric and fuel cell vehicles and recharging points is extended until December 31, 2025. In this case, the deduction reaches 15% of the acquisition value of the vehicle or of the installation of the recharging points. In corporate income tax, the decree extends to 2025 the freedom of amortization for those investments that use energy from renewable sources. It also raises from 1,500 to 2,500 euros the total amount of the total income from work coming from the second and other payers who are obliged to file the income tax return. That is to say, those taxpayers with incomes of up to 22,000 Euros who have more than one payer will not be obliged to file the Income Tax Return as long as the sum of the incomes of the second or remaining payers does not exceed 2,500 Euros (up to now it was 1,500 Euros). LIMITS FOR SELF-EMPLOYED PERSONS On the other hand, the quantitative limits that delimit the scope of application of the objective estimation method for self-employed persons are extended for one more year, during 2025, with the exception of agricultural, livestock and forestry activities, which have their own quantitative limit by volume of income. Likewise, the limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing, in VAT, are also extended for the 2025 tax period.
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