Biscay, Alava, and Guipúzcoa – the three provinces of the Spanish Basque region with the power to issue their own tax rules – have approved major corporate income tax reform legislation. Alava and Biscay published the tax reform law in their Official Gazettes on March 16 and 27, respectively, and Guipúzcoa is expected to publish soon. The amendments generally are effective for tax years beginning on or after January 1, 2018.
Multinational enterprises (MNEs) with operations in the Basque region should consider how they can take advantage of the tax reform legislation, including the reduced tax rate, the enhanced fixed assets tax credit, and the extended NOL carryforward period. Similarly, MNEs should assess the impact of the interest limitation rules, the anti-hybrid rule, and other restrictive rules.
Partner, PwC US