Reduced tax rates are introduced in the corporate income tax for microenterprises and emerging companies.

Starting from January 1, 2023, the General State Budget Law (LPGE) introduced a new reduced tax rate of 23% in the Corporate Income Tax (IS) indefinitely applicable to tax periods beginning from that date.

Who can benefit from this reduction?

Entities whose net turnover for the immediate previous tax period is less than 1 million euros and do not qualify as asset-holding entities can benefit from this reduction.
The determination of the net turnover amount will be governed by the provisions established in sections 2 and 3 of Article 101 of the Corporate Income Tax Law (LIS).

What was the objective of this modification?

The objective of this law is to reduce the tax burden on small businesses, which until now had been taxed at a rate of 25%.