A minimum of twelve European countries They already apply a certain type of special bank tax. This is how it is collected by European Banking Authority (better known as ABE) in its risk assessment report on the continent’s financial system last Tuesday. This document includes a significant sample of states that apply some type of special taxation to their banks. Besides Spain, the list includes Sweden, Denmark, Holland, Belgium, Italy, Hungary, Austria, Romania, Czech Republic, Poland and Lithuania. Additionally, it does not include countries such as Irelandwhich announced for next year an increase in the tax it charges to entities that received public aid during the previous financial crisis.
The report of the community regulator chaired by the Spaniard Jose Manuel Campa emphasizes that the collection due to banking taxes in Europe increased by 30% between the months of June 2022 and 2023. On the one hand, this is due to the positive impact on the collection of corporate tax of the increase in profits entities caused by the increase in interest rates (explains 91% of the increase). On the other hand, this responds to the existence of other taxes and levies“including taxes on extraordinary profitsfixed according to the significant profits obtained by the sector”.
In this sense, and as also done by the European Central Bank (ECB), the EBA has alert countries which believe that an increase in the level of taxation borne by banks could affect your profitability. “All these measures must be properly evaluated from a point of view cost-benefit perspective. In particular, the introduction of these new measures should examine whether certain characteristics of taxes do not imply a greater uncertainty for the banking sector,” he warned.
He Spanish tax – in fact, a “public ownership benefit of a non-tax nature” in an attempt to overcome legal obstacles – is imposed with a 4.8% interest and commissions obtained in Spain from banks that, in 2019, had income from these two elements equal to or greater than 800 million euros. In principle, this would apply temporarily on the results of 2022 and 2023 (and would be paid in February and September 2023 and 2024 respectively), but the PSOE and add included in their government agreement “rehabilitate and maintain it” -with energy companies- so that the banking sector continues to “contribute to tax justice and the maintenance of the welfare state.
Precisely, the economic vice-president, Nadia Calvinoassured this Friday in an interview on ‘Antena 3’ that “it is the It’s time to review and see if there is adjust some of the parameters of the new scenario in which we find ourselves, in which we there is no such rapid rise in rates “Thus, Euribor – the market rate that most impacts banking income – is falling because the market anticipates a cut in the European Central Bank (ECB) reference rates.
“We must see if these two taxes require make some adjustments or not. We have always said that we were going to analyze these two taxes to see, if you have to keep them looking to the future, with what parameters so that they continue to have the same positive impact from a collection point of view and from an economic point of view, taking into account that the circumstances have changed”, assured Calviño.
The second vice-president, Yolanda Díaz, responded to him in Bilbao. Although Calviño did not speak clearly about his elimination, the Sumar leader expressed her rejection of his comments. “I’m at total disagreement and I would tell Ms. Calviño that ‘pacta sunt servanda’ (what is agreed is binding) and that we have just signed an agreement which gives the presidency to Mr. Sánchezin which clearly, precisely in moments of crisis of unprecedented inflationthose who have the most, the more they have to contribute. The pre-tax profit data for energy companies and financial institutions is absolutely compelling. This is why, more than ever, they must make their contribution. I insist, it is an agreement between the PSOE and Sumar which must be completed and respected“he stated.
Sweden: special tax for banks with more than 15 billion euros in assets, with a rate of between 5 and 6 basis points on their liabilities
Denmark: increase in the corporate tax rate for banks up to 26%
Holland: 30% increase in the special tax on banks and a new tax on share buybacks for all listed companies
Belgium: increase in the contribution to the Deposit Guarantee Fund and elimination of tax deductibility
Spain: 4.8% tax on interest margin and commissions
Italy: tax of 40% on the difference in interest margin between 2021 and 2023, replaceable by a capital increase of an amount of two and a half times that which would have been paid to the State, provided that it is not not subsequently used to pay dividends
Hungary: tax of 0.21% of the balance sheet total, excluding interbank loans and new turnover tax (10% in 2022 and 8% in 2023)
Austria: 0.029% tax on net worth and guaranteed deposits
Romania: additional tax of 1% on turnover
Czech Republic: 60% tax increase on excess profits
Poland: 0.44% of assets, non-performing assets, equity and Treasury bills
Lithuania: tax of 60% on the interest margin, i.e. 50% higher than the average of the last four years