Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 32

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 3
Chunk 32
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 The Group’s presence in various jurisdictions increases its exposure to regulatory and interpretative changes, which may include (i) increases in the tax rates to which the Group is subject, such as the introduction in Spain of a minimum effective tax rate (18% of the tax base for credit institutions) since 2022 or EU Council Directive 2022/2523 of December 14, 2022, which introduces a global minimum effective rate of corporate taxation (15%) for multinational enterprise and large-scale domestic groups in the EU and that is pending to be transposed into Spanish regulation, (ii) changes in the calculation of tax bases, and exemptions therefrom, such as the introduction of a limitation in Spain since 2021 to the exemption for dividends and capital gains from domestic and foreign subsidiaries to 95%, which means that 5% of the dividends and capital gains of Group companies will be subject in Spain to, and not exempt from, corporate tax or, (iii) the creation of new taxes and/or levies, like the common financial transaction tax (“FTT”) in various jurisdictions or the creation of temporary taxes applicable to credit institutions operating in Spain.
See “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Principal Markets—Spain—Temporary Tax on Credit Institutions in Spain” for information on the new tax on the interest margin and commissions of certain financial entities in Spain.
Increases in the tax burden of the Group could materially and adversely affect the Group’s business, financial condition and results of operations. 
The Group is exposed to compliance risks 
The Group, due to its role in the economy and the nature of its activities, is singularly exposed to certain compliance risks. In particular, the Group must comply with regulations regarding customer conduct, antitrust, market conduct, the prevention of money laundering and the financing of terrorist activities, the protection of personal data, the restrictions established by national or international sanctions programs and anti-corruption laws (including the U.S. Foreign Corrupt Practices Act of 1977 and the UK Bribery Act of 2010), the violations of which could lead to very significant penalties. These anti-corruption laws generally prohibit providing anything of value to government officials for the purposes of obtaining or retaining business or securing any improper business advantage. As part of the Group’s business, the Group directly or indirectly, through third parties, deals with entities whose employees are considered to be government officials. The Group’s activities are also subject to complex customer protection and market integrity regulations.
Generally, these