Report by the committee of experts on the reform of the Spanish tax system
Tax Commentary 2-2014
On March 14, 2014, the Spanish cabinet was presented with the report by the committee of experts
on the reform of the Spanish tax system. The report’s stated aim is to set out a number of tax
reforms that will allow for fiscal consolidation and make for a more competitive economy, bring up
savings and raise employment, while keeping the tax system in line with the public debt forecasts at
all times. In keeping with these objectives, it sets a general aim to shift the tax burden from direct
tax and social security contributions to indirect and environmental taxes, by setting out proposals
aimed at rearranging and simplifying the bases of all taxes, currently limited by numerous
exemptions, reductions and tax credits.
After an executive summary and an analysis of the general context of the tax system reform, the
report is divided into various chapters addressing the reform of personal income tax, nonresident
income tax, corporate income tax and taxes on wealth (wealth tax, inheritance and gift tax and
transfer and stamp tax), VAT and special environmental taxes. Followed by a chapter on the reform
of social security contributions and lastly a description of measures to combat fraud and proposals to
foster market unity and tax neutrality.