Executive Summary
The year 2022 was one of the most legislatively active in the tax sphere in over a decade. The need to finance anti-crisis measures (fuel subsidies, social shields, energy aid) and the political debate about distributing the tax burden during inflationary times led the government to approve new tax figures and tighten compliance obligations in emerging areas such as cryptocurrencies.
Tax revenue reached a historical record of €255 billion, driven by inflation elevating the nominal taxable bases of VAT, withholdings and personal income tax, alongside strong corporate earnings in the first half. At BMC, the growing complexity of the tax environment reinforced demand for specialised technical advisory services.
Key Highlights
The Tax Fraud Prevention and Control Act (Act 11/2021) entered full force during the year, with its most relevant provisions already operational: limitation of cash payments to €1,000 in business transactions, modification of the penalty regime, tightening of the model 720 for overseas assets (following CJEU rulings) and prohibition of dual-use software for manipulating accounting databases.
The temporary levies on the energy and banking sectors, approved in December 2022 via Act 38/2022, generated intense legal and business debate. Several affected companies announced appeals before the Constitutional Court, questioning the classification as public non-tax pecuniary obligations — a category the legislator chose to avoid the procedural constraints of an ordinary tax act.
Cryptocurrency information obligations materialised with the approval of model 721 for residents with cryptocurrencies abroad and information obligations for exchange platforms operating in Spain (models 172 and 173). This regulatory framework made Spain one of the countries with the highest reporting requirements in relation to digital assets.
Analysis by Tax Category
VAT and inflation: Inflation elevated the taxable base of consumption VAT, automatically increasing revenues without changes to rates. However, the government approved temporary VAT reductions on electricity and gas to counteract the energy crisis impact on consumers. Managing these temporary reduced rates and their application conditions generated considerable administrative complexity.
Corporate Income Tax: Companies with market-price energy supply contracts suffered a substantial increase in costs, depressing second-half results. The deductibility of these higher energy costs in the CIT and the correct temporal allocation of hedging contracts were frequent areas of analysis.
International taxation: The 2021 OECD agreement began to translate into concrete legislation. The EU approved the Pillar Two Directive (Directive 2022/2523), which had to be transposed before 31 December 2023. Companies with presence in multiple jurisdictions started impact analysis, particularly regarding jurisdictions with effective rates below 15%.
Regulatory Changes
The Crea y Crece Act (Act 18/2022) introduced the future obligation of electronic invoicing between companies and regulated deferred payment in commercial transactions. Fiscal planning had to incorporate evaluation of the impact of the new levies and of the roadmap towards mandatory electronic invoicing.
Outlook
The tax horizon for 2023 presented challenges: possible extension of the temporary levies, full force of the Anti-Fraud Law in its pending regulatory development aspects, and preparation for new informational obligations on crypto assets. Companies had to strengthen their tax compliance structures in an environment of growing regulatory demand.
Our tax compliance team accompanied clients in managing these developments, prioritising the prevention of contingencies and optimisation within the applicable legal framework.
