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An independent Catalonia would offer tax incentives to companies, says govt

The moves of firms moving HQs out of the country have “no real effects” on the economy, according to the executive

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15 October 2017 12:08 PM

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ACN | Barcelona

The Catalan government proposes a set of measures in an independent Catalonia which would work as tax incentives for companies. Better fiscal arrangements for small and medium-sized businesses, changes in the corporate tax and the creation of an alternative investment market are the main ingredients that the executive is considering to implement in order to attract firms. In the past few days and following the October 1 referendum, some companies and banks have decided to move their headquarters out of Catalonia.

ACN reports that the government has prepared a report with the measures, in which it is stated that independence “is an opportunity in the mid-term to improve the market conditions which companies have faced until now.” Thus, it says that a Catalan state should have a more advantageous fiscal framework for the productive economy so as to create “incentives to new investments, job creation” and small and medium-sized businesses, which contribute with 65% of the overall Catalan GDP. The government also foresees an improvement in the regulation of the electricity market because it is now in Spain “oligopolistic”.

  • "Independence is an opportunity in the mid-term to improve the market conditions which companies have faced until now"

    Catalan government report

According to the report, the measure would take into account the Treaty on the Functioning of the European Union (TFEU), which aims to “avoid discriminations between companies and distortion of the competition.”  The text also states that the government would collect around 24 billion euros more than now in taxes. This figure is way bigger than the 10.5 billion euros of further expense that, also according to the report, it would cost to take over all the powers of a state. 

The document also mentions the recent decision of some companies to move their headquarters out of Catalonia saying that “it has no real effects to the activity, the public funds and the clients of the companies.” According to the government, it is “a pre-emptive operation and a political message which will have almost no economic effect.” Besides, it also reads that “the work places in Catalonia will be the same,” as well as “the VAT and income tax.” 

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