Frequently asked questions about the temporary tax on credit institutions and financial institutions

These concepts are included in the accounting standards applicable to these entities (Circular 4/2017, of November 27, of the Bank of Spain, to credit institutions, on public and reserved financial information standards, and financial statement models). Specifically, in number 1 of Rule 55 of the aforementioned Circular 4/2017, certain concepts are included in the following letters: a) interest income, b) interest expenses, f) commission income and g) commission expenses.

On the other hand, the concept of "interest margin" is included in the profit and loss account of these entities and is reflected in the regulations in Annex 1 of the aforementioned Circular on Sheet PI 2.

In summary, these concepts are those defined by the accounting regulations applicable to entities that are subject to this patrimonial benefit.

In accordance with the provisions of Law 38/2022, of December 27, in its article 2, section 4, the basis of the benefit is the sum of the interest margin and the income and expenses from commissions derived from the activity carried out in Spain that appear in their profit and loss account corresponding to the calendar year prior to the birth of the payment obligation, determined in accordance with the provisions of the applicable accounting regulations.

In the case of groups:

• When the party liable for payment is part of a tax group that pays taxes under the tax consolidation regime (established as liable for payment of the benefit in the cases described in the second paragraph of article 2.1 of Law 38/2022), the sum of the interest margin and the income and expenses from commissions will be the result of the profit and loss account of said tax group.

• When the party liable for payment is part of a business group (established as liable for payment of the benefit in the cases described in the third paragraph of article 2.1 of Law 38/2022), the sum of the interest margin and the income and expenses from commissions will be the result of the profit and loss accounts of the tax groups, entities and establishments that must be integrated into it.

In order to calculate the amount to which the 4.8% percentage provided for in article 2.4 of Law 38/2022 must be applied, those obliged to make the payment must subtract from the sum of the interest margin and the income and expenses from commissions shown on Sheet PI 2 of Annex 1 of Circular 4/2017 of the Bank of Spain, the amounts comprising these concepts that derive from the activity carried out outside of Spanish territory, since the basis of the benefit must only include the amounts arising from the activity carried out in Spain.

The amount of the benefit will be reduced by the amount of the advance payment that has been made.