Regarding the Financial transaction tax (monthly filings) for the months of January and February submissions have been moved to March and with respect to the digital service tax (quarterly filings) payments have also been moved to the next quarter. This should give the companies more time to adapt to the new requirements and implement all necessary changes. Whereas, FATCA has raised a number of issues, including that Spanish financial institutions may not be able to comply with. TAX - The OECD working definition of a tax is a compulsory unrequited payment to the government. The Spanish government released a notice on the postponement of both taxes. TARIFF - In general the term 'tariff' refers to a list (schedule) or system of levies (taxes, duties, charges) imposed by countries on foreign trade transactions (especially importations). The DST is a tax on digital services that places a 3 percent tax on earnings from online ads, deals brokered on digital platforms and sales of user data by tech companies with at least €750 million ($883 million) in total annual worldwide revenues and Spanish revenues of €3 million ($3.53 million). The final Law for the implementation of the Spanish Financial Transaction Tax was published by the Spanish Government in October 2020 and will enter into force on 16 January 2021.The FTT is a 0.2% tax on the purchase of shares of Spanish companies with a market capitalization of more than €1 billion.These taxes are to become effective starting January 2021. These taxes are the Financial transaction tax (FTT) and the digital service tax (DST) and they both were passed last year by Spain’s upper house. In fact, most of them have opted to apply a 7 rate (and even higher rates) to real estate transfers, and a 1.5 rate of Stamp Tax to certain transactions. The statutory FTT rate under the TRC is 0.11 however, it has been exempted under Royal Decree No.240 since 1992 to promote investments in the SET. Spanish taxpayers are to be hit by two major taxes in 2021. What is financial transaction tax Financial transaction tax (FTT) is a specific business tax (SBT) under the Thai Revenue Code (TRC) levied on the sales of securities listed in SET.
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