Congress endorses the modification of the Economic Agreement


Economic Agreement

Agencies | Eitb Media

The modification will make it possible to adapt the Agreement to the new Community regulations on cross-border trade. The figures of the Tax on Certain Digital Services and the Financial Transaction Tax will be agreed as taxes agreed upon under state regulations.

The Congress of Deputies has endorsed the bill by which It’s changing Law 12/2002 of Economic Agreement to adapt it to new community regulations on cross-border trade and the tax figures approved by the Government. All groups have voted in favor, except Vox and Ciudadanos, who have voted against.

This modification of the Agreement, resolved by the single reading process, was agreed between the General State Administration and the Basque Government and the three provincial councils, at the meeting of the Mixed Commission of the Economic Agreement held on July 29.

Specifically, as determined by the Mixed Commission, the adopted amendment will allow the conclusion of the Tax on Certain Digital Services and the Financial Transactions Tax, as well as the special VAT regimes for cross-border e-commerce, which involve the modernization and simplification of this tax.

Both figures are incorporated into the Concert as Concerted taxes of state regulations, so that the demand for payment of the tax by the provincial councils will be produced by applying the same substantive and formal rules established by the State at a general level.

In both figures, the taxpayers will pay tax to the provincial councils, the State Administration or both administrations. They will do so in proportion to the volume of operations subject to the tax carried out in each territory during the settlement period in the case of the Tax on Financial Transactions, and to the volume of digital services rendered in each territory in the Tax on Certain Digital Services. The inspection competence will be assigned based on the taxpayer’s fiscal domicile.

See also  The US Federal Reserve points to March for the first rise in post-crisis interest rates | Economy

The Minister of Economy and Finance of the Basque Government, Pedro Azpiazu, stressed that the update of the Economic Agreement is a “very relevant” measure, since it will allow Basque farms to start collecting taxes on financial transactions, digital services and VAT on electronic commerce, as “comprehensive” tax entities and “recognized”.

Azpiazu explained that the changes approved in Congress “allow the Economic Agreement to be adapted to the fiscal reality.” As he explained, this reform shows that the financing regime of Basque institutions “is adapting to the new fiscal reality at the international level, not only at the community level, but also at the level of the Organization for Economic Cooperation and Development ( OECD) “.

Related Posts

George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

Leave a Reply

Your email address will not be published.