Iberdrola assumes that it will be able to offset the energy tax through the deductions promoted by the Government and the PNV. The electricity company chaired by Ignacio Sánchez Galán presented the results report for the first quarter this Wednesday and only refers – in its more than 90 pages – to the fact that the tax item fell compared to the same period last year, mainly due to the lower tax on the sales, without specifying the quantity. However, it is included in a footer of the presentation also sent to the National Securities Market Commission (CNMV) that the extra fee will be 157 million euros.
“The 1.2% sales tax in Spain is included in Corporation while, for presentation purposes, it appears in Electricity Production and Customers in Spain (-157 M Eur) because it only affects the Energy Production and Customers business “, justifies the company in the document. However, Sánchez Galán was asked in a conference with analysts about the possible deductions to the strategic investments that the Executive announced as a way to mitigate the impact of the tax and the manager responded as follows: “We have no news, but we think that Investments can be deductible as announced by the Government. This tax is already deductible for us because we have our tax headquarters in the Basque Country.
Specifically, the Executive opened a way to modify the tax within the General State Budget Law (PGE) of 2024 by introducing an incentive that would be applicable to strategic investments made since January 1, 2024, although Budgets have been extended. It also agreed with the PNV to integrate both the energy and banking taxes into the regional regime of the Basque and Navarrese communities.
Companies work with parties.
In this sense, and despite the fact that the Government renounced the PGE and continues studying the legal formula to approve the deductions, Iberdrola would already be counting on the deductions since their application – when it comes into force – from January 1 of this year . . The Information has evidence from sector sources that companies are working with the parties to implement their application. Government sources assure that the objective is to comply with the modifications announced for the tax.
The Government could use the same formula that has allowed the Corporate Tax Law to be modified with an amendment to the Draft Law that originates in RDL 8/2023. That is, the Executive can do it through another law as long as it has sufficient parliamentary support to approve it. Sumar, a government partner of the PSOE, has criticized that the socialist party and the PNV intend to soften the extraordinary tax on the sector.
Iberdrola’s tax item drops 11% in the quarter
Continuing with the electricity company based in Bilbao, the results report corresponding to the first quarter of this year reflects that the tax item stood at 1,053.2 million euros between January and March, 10.7% less than in the same period The exercise. precedent, especially due to the lower tax on sales as mentioned at the beginning and the end of the reduction in remuneration for the price of gas, which was introduced by Royal Decree-Law 17/2021 and which has ceased to be in force since on January 1 of this year.
The energy tax is levied at 1.2% on the import turnover of companies in the industry that invoiced more than 1,000 million in 2019. In this way, the tax does not affect those incomes where the supply is at a regulated price, as is the case of the PVPC for electricity, the last resort rate (TUR) for gas, bottled LPG and piped LPG. Iberdrola, Endesa, Naturgy, Repsol and Cepsa have appealed. The most affected has been Repsol, which due to its size in Spain recorded an accounting impact of 444 million in the last liquidation. It is followed by Cepsa, with 323 million, and Naturgy, which has calculated some 300 million -between the two years that it would be in force initially-, while Iberdrola, with 216 million, and Endesa, with 208 million, have been the least harmed.
The extraordinary tax on energy companies was approved at the end of 2022 for a period of two years to increase the fiscal contribution of the sector at a time when, according to the Government, the high prices of electricity and gas generated extraordinary benefits. which the companies denied. The CEO of Endesa, José Bogas, also mentioned the tax yesterday at the general meeting of shareholders. “I want to emphasize that maintaining an extraordinary tax detracts from our ability to invest and to successfully face the demands imposed by the energy transition. In addition to being a comparative and competitive grievance within the framework of European law,” he stressed.
