Spain's Economic Boom vs Tax System Challenges

Spains economy is thriving, growing at three percent, but its tax system faces challenges. Despite ranking high in the Tax Foundations Competitiveness Index, Spain has dropped to thirty-fourth place out of thirty-eight OECD countries. This decline is due to poor performance in five key tax areas, including corporate income tax. Critics argue that offering both a patent box and an R&D credit to encourage innovation can distort economic decisions and create confusion. Additionally, Spains Digital Services Tax and windfall profits tax for sectors like banking and energy raise concerns about legal certainty and potential double taxation. Experts agree that simplifying the tax system and making it easier to comply with should be top priorities, especially with the upcoming implementation of the OECDs global minimum tax.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.