Álava approves the regulations for the Supplementary Tax for multinationals and large groups

The Foral Government Council of the Provincial Council of Álava approved on October 27 Foral Decree 37/2026, which approves the Regulations of the Supplementary Tax to ensure a global minimum level of taxation for multinational groups and large-scale national groups of the Historical Territory of Álava. The regulation is published in the Official Gazette of the Historical Territory of Álava (BOTHA) no. 127, of November 4, 2026, with the official reference 2026-03115. The foral decree enters into force the day following its publication, and the annexed regulation shall apply to tax periods beginning from January 1, 2025.

The regulation completes the development of the concerted tax created by Foral Rule 16/2025, of December 12, which responds to the obligation to transpose Council Directive (EU) 2022/2523, of December 15, 2022, on ensuring a global minimum level of taxation of 15% for multinational enterprise groups and large-scale national groups in the Union. Previously, Fiscal Urgency Normative Decree 3/2024, of December 27, incorporated the directive into the Alavese tax system, and Fiscal Urgency Normative Decree 2/2025, of December 23, adjusted the foral rule to the corrections of errors of the directive.

The approved text is structured into a single article and two final provisions—entry into force and normative authorization for the deputy of the Department of Treasury, Finance and Budgets—while the annexed regulation consists of 32 articles, six titles, and three transitional provisions. Its dual function is to develop the parameters of the foral rule and clarify its interpretation in accordance with the Model Rules of the OECD and the European Union, within the framework of article 11.1 of Foral Rule 6/2005, General Taxation of Álava. The file incorporates the abbreviated regulatory impact report from the Tax Regulation Service and the opinion of the Consultative Commission, which considers the decree to be in accordance with the legal system.

Structure of the regulation by titles

• Title I. Subjective scope: clarifies when an entity performing auxiliary activities for a non-profit organization is an excluded entity (with the threshold of 750 million euros or 25% of the group’s turnover) and regulates the option for the regulated insurance mutual.
• Title II. Tax base and adjusted covered taxes: adjustments for financial years, adjustments for net investment coverage and write-offs, exclusion of income linked to economic substance, and treatment of refundable tax credits.
• Title III. Calculation: rule for the inclusion of income when an entity is included in and excluded from a group within the same period.
• Title IV. Informative return: content, communication by the reporting entity, and information by jurisdiction and by constituent entity.
• Title V. Infringements and sanctions and Title VI. Self-assessment.

Reporting and payment deadlines

The informative return and other communications must be submitted electronically to the Provincial Council of Álava by the last day of the fifteenth month following the close of the tax period, in accordance with article 18 of the regulation. The self-assessment, regardless of whether the quota is positive or zero, shall be submitted and paid within 25 calendar days following the fifteenth month after the conclusion of the tax period, and its quota cannot be negative, with no right to a refund.

For the first financial year in which a group enters the scope of the tax, the informative return shall be submitted within the two months prior to the last day of the eighteenth month after the close, and the self-assessment within the 25 calendar days following that eighteenth month. No self-assessment may be submitted before June 30, 2026. In multinational groups, the exchange of information will be channeled through the multilateral convention or the bilateral conventions signed by the Kingdom of Spain.

Sanctions, options, and transitional regime

Article 31 develops the sanctioning regime of article 50 of the provincial law and defines what constitutes each “set of data,” with ten scenarios referring to specific sections of articles 20 to 30 of the regulation. There will be as many sets of data as there are affected constituent entities, and each piece of information will be counted only once for the purpose of calculating the sanction.

Among the planned options, the possibility of not applying the exclusion of capital gains or losses for a minimum of five tax periods stands out, in order to avoid distortions in the effective tax rate. The transitional provisions establish the five-year non-enforceability period starting from the first period in which the rule for insufficiently taxed profits becomes applicable, allow for simplified informative declarations in certain jurisdictions for periods ending before July 1, 2030, and set the deadlines for the first declaration and first self-assessment.

The regulation directly affects groups with constituent entities located in Álava that exceed the consolidated turnover thresholds, which from now on have a homogeneous interpretative framework to calculate the effective tax rate per jurisdiction, fulfill their reporting obligations, and avoid sanctions for incomplete data sets.

Source: Official Gazette of the Historical Territory of Álava, no. 127, of November 4, 2026, section I (General Assemblies of Álava and Foral Administration of the Historical Territory of Álava), p. 1 (official reference: 2026-03115).