Banks will inform the Treasury of all payments received by entrepreneurs via Bizum, no matter how small, to avoid tax fraud. The Ministry headed by María Jesús Montero is preparing a new Royal Decree that will eliminate the limit of 3,000 euros per year from which banks are obliged to inform the Treasury of any payment received by professionals and the self-employed.

The text, submitted from this Wednesday to public information until 26 December, will oblige banks, but also, as a novelty, payment institutions, electronic money, as well as any foreign financial company operating in our country to report each month, and for the first time in history, payments by Bizum, as well as those made by card.

‘Obtaining monthly information on card payments will improve the control of possible concealment of business or professional activities, since the financial flows generated with these payments will be known in a much more consistent way with the VAT declaration deadlines’, justifies the Ministry of Finance in the explanatory report of the new regulation.

Control over cards

This Royal Decree will also bring another novelty in terms of the information that banks must provide to the tax authorities. For the first time, they will have to report every year the movements that citizens make with their cards, whether credit, debit, prepaid or virtual, provided that the charges and payments made in the year exceed 25,000 euros. Any type of institution, whether credit, payment, electronic money or foreign, will be obliged to send this information, provided that it has customers residing in Spain.

Account information

In addition, the Royal Decree, once approved, also modifies the period in which these entities must send information to the Treasury on current accounts, which will change from annual to monthly. In other words, banks and new virtual entities will have to send the Tax Agency information on accounts opened by Spanish residents in our territory, who is the actual holder of the account, and on an annual basis, the balance in the account at the end of the year and the average balance in the last quarter.

Loans and cash

Finally, although banks were already obliged to report data on loans, credits and cash movements of citizens and companies every year, now payment institutions, electronic money institutions and those that, although foreign, provide services in Spain must also report this information.

In this case, the obligation to report any cash inflow or withdrawal of more than 3,000 euros is maintained.

A catch-all

This new Draft Royal Decree is a catch-all used by the Treasury to include several pending regulations. Thus, the regulation will also develop the regulation so that large companies and multinationals earning more than 750 million euros a year can apply the new minimum supplementary corporate tax, so that they and their subsidiaries abroad are taxed at a rate of at least 15%. The Regulation clarifies a series of highly technical aspects for the calculation of the tax base of the parent company and subsidiaries, as well as the adjustments that can be made.

In addition, the text will reform the Personal Income Tax Law to make it easier for mothers to deduct 1,000 euros for childcare expenses.

Source: El Economista