MADRID: Spain’s Secretary of State for Finance, Miguel Ferre, said on August 18, 2015, that tax reforms implemented in July will boost tax revenue by 6.2 percent in 2016.
The reforms included changes to personal income tax rates and thresholds. Since July, the minimum rate was set at 19 percent and the maximum rate at 45 percent. In addition, the number of personal income tax rates was reduced from seven to five. Ferre said that the new rates are expected to increase the disposable income of taxpayers by around EUR9bn (USD10.4bn).
The corporate income tax rate was also lowered from 30 percent to 28 percent, with a further reduction to 25 percent scheduled for 2016. Ferre said that the reforms will increase the country’s gross domestic product (GDP) by three percent next year. He also said that tax revenue is expected to amount to EUR193.5bn in 2016.
