Experts close to the Generalitat stir up the debate on the decentralization of Corporate Tax

The imposition on companies, whose decentralization appeared in principle to be the most remote due to the academic consensus regarding what inadvisable of its fractionationhas now remained the only way to gain fiscal autonomy and its potential transfer is beginning to appear in debates about the future of regional financing.

«The report of the experts for the reform of regional financing of 2017 I didn’t talk about corporate tax.but it is a tax that could be perfectly decentralized as in fact already happens in other federal countries, such as Germany,” he said in a recent debate on the future of regional financing organized by Funcas Nuria Bosch, professor of Economics at the University of Barcelona. and one of the experts who advised the Generalitat of Catalonia in the negotiation of the last reform of regional financing in 2009, in which the transfer of Companies was not addressed either.

The agreement signed between PSC and ERC, and assumed by the Government of Spain, has already de facto broken that border, by providing for the transfer of 100% of the taxes collected in Catalonia. Some of the main experts on regional financing in the country such as Ángel de la Fuentes, Santiago Lago Peñas or Jesús Ruiz Huerta, coordinator of the white paper for tax reform and one of the experts recruited by the Generalitat to outline the unique financing of Catalonia, are have shown opposed to this transfer.

For Maite Vilalta, professor of Public Finance at the University of Barcelona and another of the experts recruited by the Generalitat to design the Catalan financing model, there is room, as she said in a debate organized by CC.OO., for give up more fiscal capacity in the Corporate Tax “via deductions for business activity, as in Switzerland or the United States, or via modification of rates within each territory.”