Tax Commentary 1-2013

Law 16/2013, of October 29, 2013, Establishing Certain Measures on Environmental Taxation and Taking other Tax and Financial Measures (Law 16/2013 or the Environmental Taxation Law) was published on October 30, 2013 in the Official State Gazette.

This Law not only regulates environmental taxation-related aspects, such as the creation of a tax on fluorinated greenhouse gases or modifications to the excise tax on oil and gas in the case of natural gas supplies, or to the excise tax on electricity or the tax on nuclear fuel production, but also makes material changes to corporate income tax.

Among these changes, the most widely reported is the elimination of the deductibility of impairment losses on investees and of losses incurred through unincorporated joint ventures or through permanent establishments abroad. Changes have also been made to the informational obligations imposed on entities managing and marketing collective investment undertakings. Lastly, Law 16/2013 also regulates certain specific aspects of the tax regime governing Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria (the company managing the assets of ailing Spanish banks).

We describe all of these measures below.

1. Corporate income tax

2. Collective investment undertakings

3. Tax regime governing ‘SAREB’

4. Tax on fluorinated greenhouse gases

5. Changes affecting other taxes

6. Entry into force