Spain Extends Indefinitely Its Windfall Tax on Banks, Utilities

Spain’s parliament voted Jan. 10 to extend indefinitely a windfall profit tax on banks and energy companies that was originally introduced as a temporary measure in 2022.

The windfall profit tax imposes a 1.2% levy on energy companies’ domestic sales. It also requires banks to pay a 4.8% charge on money they make in interest plus commission.

• Last month, Prime Minister Pedro Sánchez said the tax on energy companies will be amended later this year to allow companies to deduct investments linked to the clean energy transition from January 2024.
• The decree also extended a tax on high-wealth payors, ...