The Government of Navarra has reached a preliminary agreement with the Government of Spain to carry out a modification of the Economic Agreement Law that includes a series of novelties, among which stand out the assumption by the Foral Community of the regulation, management, inspection, and collection of two new tax figures: the Complementary Tax to guarantee a minimum global level of taxation for multinational and large national groups and the Tax on the margin of interests and commissions of certain financial entities.

In this regard, an informative meeting of the Navarran part of the Negotiating Commission of the Economic Agreement was held on Tuesday, where all the details of the preliminary agreement reached were presented. A consensus that, in the words of the Minister of Economy and Finance, José Luis Arasti, represents «a new boost to the self-government of the Foral Community» that once again highlights the fluid communication between the Government of Navarra and the Central Administration. The preliminary agreement reached will result in the seventh modification of the law, of which, Arasti has recalled, the last three were in the years 2022, 2023, and 2025.

The Governments of Spain and Navarra have agreed that this coming Friday, April 11, will be the date of the signing of this agreement, which requires the celebration of both the Negotiating Commission and the Coordinating Commission of the Economic Agreement. Both are two coordination bodies between administrations, with representation from Navarra and the State in both.

Once the agreement is signed, it will have to be endorsed by the Parliament of Navarra before proceeding to its processing in the Cortes Generales, where it must be approved for its definitive entry into force.

Content of the agreement

In total, the agreement reached between the governments of Navarra and Spain contemplates the modification of 22 articles, an additional provision, and three transitory ones. Some of these issues, in addition to the two new tax figures already mentioned, have to do with the expansion of normative competence for Navarra in the Income Tax for non-residents; the increase from 10 to 12 million euros in the volume of operations to be subject to relative figures in the Corporate Income Tax, VAT, and the Gambling Tax, or the application of the deferral regime for the payment of import VAT for Navarran companies.

Meanwhile, in the financial part, the agreement includes a new fiscal adjustment of the Special Tax on the manufacturing of liquids for Electronic Cigarettes and other Tobacco-related products.