The introduction of a new tax to tax tech companies has already been announced by the previous executive branch to pay for the increase in pensions. The proposal was to introduce a tax on invoicing, not on profits – there was talk of 3 and 5% – for digital services to technology companies that were in one of these situations: invoice more than 7 million euros, more have more than 100,000 users or have more than 3,000 contracts in a Member State.
The change in the executive crippled the development of the proposal, but did not cast it into oblivion. Current President Pedro Sánchez also announced a whole package of measures to implement tax reform, including the introduction of a tax on banks and technology companies. Neither the amount of the fee nor whether it will be applied in billing has yet been determined.
There is also some uncertainty as to whether Spain will finally be able to apply the digital tariff, also known as the “Google tariff”, unilaterally, i.e. outside the government of the European Union, where member countries have not yet agreed on a common body.
However, in anticipation of the final decision, the announcement has already raised concerns among tech companies, who expect to warn of the possible adverse effects the new rate could cause. “Out of ametic We believe that a sector that creates wealth should not be penalized or taxed. This rate can have dangerous effects such as: B. curbing innovation, investment and job creation. In addition, it has been shown on other occasions that industry tariffs do not work: they create more problems than benefits, affecting the user in general”.
Likewise, they warn and even acknowledge that “it is too early to confirm or materialize the impact of its application” of the risk that this tax will “indirectly affect other Spanish business and consumer sectors given that the tax is expected to will be a brake on job creation, investment and spending in the digital sector, with the consequent increase in the price of digital products and services”. They eventually understand that “the approach the government is giving to the rate introduces some technical flaws, such as imposing a chain tax or taxing income rather than profits”.
With more than 300 members, the Association of Electronics, Information Technology, Telecommunications and Digital Content Companies (AMETIC) represents more than 3,000 companies of all sizes in the information technology, digital technology consulting, electronics industry, consumer electronics, digital content and telecommunications sectors.
For your part Alice RichardDirector General of the Technological Employers Association DigitalES, explained in another medium: “It is very unfair that in order to pay taxes, Google and Facebook have to tax those who are already paying.” Its partners include Telefónica, Indra, Cellnex, Siemens, Vodafone and Cisco, who could be among the major victims.