Keys to the new government tax that big technology does not like

Keys to the new government tax that big technology does not like

It is still unknown how much will be collected but the law will be processed "imminently", although some multinationals have already complained

Amazon, Facebook, Google or Twitter have in common that their fundamental business is based on the sale of advertising 'online', in the intermediary activities of digital platforms or in the commercialization of data that is generated with information provided with the user.

Therefore, these companies -among others- will pay in Spain the new tax on technological platforms promoted by the Montero cabinet. These are the three assumptions that the finance minister detailed as the bases on which the "imminent" rate for digital services would be based.

Although he placed special emphasis on his first appearance before the Finance Committee in Congress where this newly created tax "will not affect SMEs or medium-sized companies", the lack of specificity regarding the type of tax and the minimum billing on which will be applied is generating concern among these multinationals.

Something that the Treasury sees as a simple "adjustment" to the contribution of large firms to the common good, because tax regulations "have become obsolete". But, as has happened with large companies and banks when they have known the tax reform that plans on them, technology companies have chosen to show their dissatisfaction or silence in response.

This is the case of Facebook, Amazon and Google, which when asked by this newspaper have refused to comment on the matter.

Against

Several large companies have firmly positioned themselves against the tax. The Swedish multinational Ericsson, which employs some 2,500 workers in Spain, has said it will withdraw its R & D centers in Madrid and Malaga if they charge "3%" for the income obtained. The president of the company, José Antonio López, pointed out that a generalized tribute to the technology sector could lead some companies to leave the country.

 «To me tomorrow they charge me 3% for the income and the centers of I + D I close them to take them to Portugal all, I do not doubt nor a day in making the decision», assured elevating the tone of the critics emitted by the technological employer's association DigitalES.

Technological employer

Its general director, Alicia Richart, fears that this new tax will affect all technological companies as those that make up its employer -41 companies with 150,000 employees- already pay more than 8,000 million euros a year in taxes, while digital platforms «They only add 25 million among all». "This is not competition under the same rules of the game," he regrets and then adds that "we need a harmonized tax across the EU" because otherwise there will be countries that lose competitiveness.

Telephone, in favor

There are multinationals that, however, do see the measure with good eyes. The president of Telefónica, José María Álvarez-Pallete, argues that when talking about large companies we must see what tax rate they have and what their individual situation is, while calling for a reflection on whether all companies are taxing "to the extent of the benefits we generate within Spain ». From the company they assure that they pay more than 12,000 million Euros in taxes to the year in the whole world, of which 2,777 are in Spain. "I do not know if it is a lot or a little, but regarding our benefit, it is a relevant amount," he argues.

Treasury

In any case, the Treasury does not have an action plan in mind in case there is a mass disbanding of companies. They see the measure as "a step of the 21st century" and whose sole objective is "that technology companies pay where they generate benefits, like any other." They want to tackle the problem of this type of multinationals generating their profits here but then taking them from the Spanish subsidiary to their parent companies located in other countries.

 Being a measure that the previous Government of Rajoy was already working on, it is advanced and it will be possible to start processing "immediately" in order to be able to approve it "at the beginning of 2019". In theory, there will be no problem in getting the support of Parliament. We can has positioned in favor, Citizens had a similar agreement with the PSOE and the PP was the party in the Government when they began to value the idea of ​​a tax on digital services. In fact, in the Stability Plan that the former Minister Montoro presented in Brussels was already collected.

As for the collection, the Treasury does not want to give specific data yet because it is still to define the limit from which it will be taxed to companies and the fine print of the tax itself that will be applied to make a calculation. In times of Montoro an approximate figure of 600 million euros was established, to which the current Montero cabinet replies that "it will not be less than that figure".

As for the collection, the Treasury does not want to give specific data yet because it is still to define the limit from which it will be taxed to companies and the fine print of the tax itself that will be applied to make a calculation.

In times of Montoro an approximate figure of 600 million euros was established, to which the current Montero cabinet replies that "it will not be less than that figure". As for the collection, the Treasury does not want to give specific data yet because it is still to define the limit from which it will be taxed to companies and the fine print of the tax itself that will be applied to make a calculation. In times of Montoro an approximate figure of 600 million euros was established, to which the current Montero cabinet replies that "it will not be less than that figure".

Experts

The specialists consulted also do not have a joint position regarding the consequences that can be derived from the tax. Josep Francesc Valls, Esade Marketing Professor, explains that technology companies must participate in a "more active" way in improving general taxation and quote under a "unified" model. In his opinion, there are big differences between technological and traditional business models that should not be alleviated by requiring the same, but with what the former pay, then the latter can "reduce their tax burden".

However, Carlos Cruzado, president of Gestha, the main collective of tax experts, already complained when Montoro estimated the collection at around 600 million, according to some estimates, "at least 1 would be needed. 600 million »to adjust pensions to the CPI this year. According to him, the measure is not new because the European Commission proposed on March 21 a draft directive for these large digital companies to tax EU countries with "a surcharge of around 3%" of the profits from their sales in each community partner.

The measure would affect those companies that invoice more than seven million euros per year and that have more than 100,000 users, or have more than 3,000 contracts in a Member State.