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Spain: Spain gets tough in tax reform

01 June 2012



Vicente Bootello
José Ignacio Ripoll

On March 30 2012, the Spanish government approved Royal Decree-Law 12/2012, introducing a raft of tax measures (some temporary – for 2012 and 2013 – and others set to be permanent) aimed at reducing the budget deficit and, in doing so, complying with Spain's agreements with the EU. In this way, the new government is attempting to unblock the situation of economic crisis that the country has been experiencing since 2009.

The key changes are as follows:

Goodwill

Effective for the 2012 and 2013 tax periods, the annual ceiling on the deductible amount for intangible assets relating to goodwill, on both acquisitions of entities and corporate restructurings, has been brought down from 5% to 1%. The annual ceiling is now in line with the ceiling placed in the 2011 Royal Decree on financial goodwill and applies to other types of goodwill with tax effects.

Unrestricted depreciation...



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