The Treasury is preparing a new Royal Decree that will oblige banks to inform the Ministry of all payments, however small, received by businesses and the self-employed. The current threshold of 3,000 euros per year above which banks must report to the Treasury will be eliminated.

The draft Royal Decree, which was submitted for public information last week until 26 December to establish a minimum tax rate of 15% for companies and their subsidiaries abroad that earn more than 750 million euros a year, also includes a greater requirement for banks to report all payments received by businesses and the self-employed, even if they do not exceed the current limit of 3,000 euros per year.

According to the text of the draft presented by the Ministry of Finance: ‘To add certain additional information to be provided and to modify the frequency of presentation of the information, which will become monthly, with the net annual threshold of 3,000 euros no longer applicable’.

This new regulation would not only apply to large banks but also to other electronic money payment institutions, as well as to any foreign financial company operating in Spain. In addition, as a novelty, card payments and those made by Bizum or any other method will have to be reported, clearly differentiating between revenues according to the payment method.

In this way, the Ministry aims to align tax regulations with those on the prevention of money laundering to avoid tax fraud: “Obtaining monthly information on card payments will improve the control of possible concealment of business or professional activities, given that the financial flows generated with these payments will be better known by the VAT declaration deadlines”, the entity points out in the explanatory report on the new regulation.

Other new features of the Royal Decree

For their part, issuers of ‘all types of cards’ will have to declare annually the transactions carried out with this means of payment, provided that the total amount exceeds 25,000 euros per year, with a breakdown of charges, credits and cash withdrawals. This also includes foreign institutions, provided that they have customers residing in Spain.

In addition, the period in which these institutions must send information on current accounts to the Tax Agency has also been modified, changing from annual to monthly. Similarly, the balance at the end of the year and the average balance in the last quarter must be included.

On the other hand, the Tax Agency will make it easier for parents to benefit from the deduction of up to 1,000 euros for childcare expenses. By allowing the Tax Office to automatically include this deduction for childcare expenses in the annual tax return, thus avoiding the need to enter this data manually.

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