For each of the tax agreed figures, the Economic Agreement lays down the criteria by virtue of which the legislative, inspection and levying competences are distributed In addition, the Economic Agreement sets the rules required to distribute the competences concerning specific, formal or material, issues in relation to each tax figure.
The Economic Agreement regime guarantees a comprehensive tax system, with the exception of the competences the Agreement confers exclusively on the State. In order to do so, the Second Additional Provision of the Agreement states that in the event of a reform of the State tax legal system affecting the taxes object of agreement, or an alteration in the distribution of the regulatory competences affecting the scope of indirect taxation, or new tax figures or payments on account, both Administrations shall by mutual agreement proceed to adapt the Economic Agreement to any modifications made in the aforementioned legal system. This provision guarantees that the agreed tax regime is anytime adapted to the actual situation and structure of the tax system in force in the State and justifies the harmonisation rule imposed on the Historical Territories at the time to establish their tax regime that obliges them to regard for the general taxation structure of the State.
Below you can find a chart of each of the agreed taxes, summarising the allocating factors for the legislation, inspection and levying capacities.
- Individuals Direct Taxation
- Corporate Income Tax.
- Withholding Taxes and Estimated Taxes.
- Tax on Income of non-residents.
- Taxes on the Electricity Sector, on Deposits in Credit Institutions and Tax on the value of Gas, Oil and Condensate Extraction.
- Value Added Tax.
- Transfer Tax and Stamp Duty.
- Excise duties and Tax on Fluorinated Greenhouse Gases.
- Tax on Insurance Premiums.
- Gaming Duties, Fees and Local Taxes.
Finally, the Economic Agreement also establishes the criteria that determine the administration before which taxpayers must fulfill their reporting obligations.
