Spain: Government approves the Bill on the Financial Transaction Tax
At the council of ministers’ meeting held on Friday 18 the Bill on the Financial Transaction Tax (known as the 'Tobin tax') was approved, after undergoing the period for public consultation and comments between October 23, and November 15, 2018.
It is an indirect tax amounting to 0.2%, charged on transactions for purchasing shares in Spanish companies for valuable consideration, regardless of the residence of the participants in the transactions, provided they are listed companies and the company’s market capitalization is above €1,000 million.
The taxable person is generally the financial intermediary that transmits or executes the purchase order. The purchases that will be exempt from this tax notably include transactions on the primary market (initial public offering of shares by a company), transactions needed for the market infrastructure systems to operate, business restructuring transactions (mergers, spin-offs, asset contributions, share exchanges) and intercompany transactions.