New regulations for 2014

Royal Decree-Law 1/2014, dated 24 January, on improvement works in infrastructures and transport, and other economic measures

The tenth article of this Royal Decree-Law modifies the rewritten text of the Corporation Tax Act, passed by Legislative Royal Decree 4/2004, dated 5 March, with the aim of matching the percentage of withholding or on-account payment applicable for this Tax, to the percentage for Income Tax, for the financial year 2014.

The proposed measure regarding the scheme of withholding and on-account payment for Corporation Tax, tries to match the current withholding rate for Income Tax (21%) to that of Corporation Tax (19%). This equalisation should have taken place through the General State Budget Act for the year 2014, with the aim of its taking effect on 1 January 2014. As it has not taken place, it is absolutely necessary to modify withholding in the Corporation Tax, with the aim of preventing the affected organisations from having to modify their computer systems to establish a distinction between physical and legal people, an issue that is very complicated.

de reforma en materia de infraestructuras y transporte, y otras medidas económicas.(BOE, 25-enero-2014)