Amazon invests million euros Twitch subsidiary Spain, which was born in 2020 and acts as a commission agent for a parent company in Luxembourg.

The Official Gazette of the Mercantile Registry already reported in the middle of last year the birth of Twitch Interactive Spain SL, a subsidiary of the popular streaming platform in Spain, one of its most powerful markets.

Now the Information highlights that Amazon, the owner of the platform, has injected into the subsidiary one million euros for the Spanish company to start. In 2020 it remained without activity.

It has done so through a company in Luxembourg on which this Spanish company depends, Amazon Europe Core SARL. Although Twitch Interactive Spain SL was established in July last year with a share capital of 3,000 euros, the purpose of this injection is to start their work as a commission agent.

The corporate purpose of Twitch Interactive Spain is primarily " advice, assistance, support "and" marketing"," dissemination "or" dissemination "in favor of"group companies". Other technology companies maintain subsidiaries in Spain with the same purpose: they bill the bulk of their income in other markets, such as the Irish market in the case of Facebook or Netflix, or the Luxembourg market in the case of Amazon. The subsidiaries in Spain are responsible for financing the investments in promotion.

Amazon invests million euros Twitch subsidiary Spain

There is abundant information that this injection of one million euros was not made by means of a capital increase, but by means of an extraordinary contribution that was reflected in the company's annual accounts and that have already been presented in the Mercantile Registry.

The economic digital also affects how in recent months Amazon has continued its signings to constitute a team of professionals for the development of the streaming platform in Spain. Most of this team is taking shape in Madrid.

The strength of the Spanish market on Twitch is undeniable. Some of the broadcasts that Spanish influencers or streamers have starred in the platform have achieved records of simultaneous viewers around the world, as was the case of the Murcia TheGrefg, which achieved 2.4 million viewers earlier this year the night he was going to present his skin in Fortnite.

Amazon invests million euros Twitch subsidiary Spain

Also a boxing evening organized by the Ibai Llanos team in which several Spanish streamers participated exceeded a million simultaneous spectators a few days ago, thus achieving more audience than the final of the Europa League itself.

Initially, the launch of this Twitch subsidiary in Spain would not mean any setback for many Spanish streamers who have moved to Andorra to enjoy advantageous taxation, a scandal that reappeared in the media with the departure of El Rubius, one of the most followed Spanish content creators in the world, to the Principality.

Amazon invests million euros Twitch subsidiary Spain: This is because the payment for what streamers generate thanks to their followers ' subscriptions and the distribution of advertising on their channels will continue to be based on Twitch's matrices in Europe and the United States.

The tax agreement between Spain and Andorra determines that a citizen must reside more than half of the year in one of the two states to be taxed there. If that figure is not exceeded, it has to be determined where their relationship of economic interests lies. There the debate became entrenched: although much of the audience of Spanish streamers are also in Latin America, many economic relations and advertising agreements are closed with firms in Spain.

The Spanish Treasury itself launched a series of measures to try to pursue and investigate those streamers who left Spain maintaining their economic relations in the country.

Amazon invests million euros Twitch subsidiary Spain

More news:

The Government recognizes in its Spain 2050 strategy that confinement shot up inequality by 30%: low incomes, women, children under 30 and immigrants, the most affected

The crisis caused by the coronavirus has triggered economic inequality. While big fortunes managed to recover before the end of 2020 large part of the multimillion-dollar losses they suffered during the pandemic, the economic consequences of the measures of restriction of activity and movement continue to weigh on the lowest incomes, temporary jobs, women and youth, who have been the main affected by the increase in unemployment.

This impact has made Spain the European leader in youth and female unemployment and has harmed workers with greater job insecurity and those employed in sectors especially affected by the pandemic, although especially those under 30, who have lost 4 times more income than older workers because they are more present in activities harmed by the coronavirus.

In fact, the Spain 2050 strategy, which the Government presented 2 weeks ago, includes in its study a data that confirms that the measures of confinement and restriction of non-essential activity have harmed 3 times more households with lower incomes than the most affluent, could cause a greater rise in income inequality in the short term, according to Five Days.

Specifically, the document predicts that 2021 will end with 700,000 people below the poverty line and highlights that the coronavirus would have caused the lowest incomes to be reduced by 10% in 2020, while the Gini inequality index would have increased by 1.7 points, which represents a rise of 30%, which would imply an increase in the income gap more pronounced than the one that occurred in 2008, at the beginning of the previous crisis, according to the Prisa Group's economic newspaper.

In addition, the study on the 2050 strategy reveals that the closure of non-essential activities affected 27% and 25% of the 2 lowest deciles of income level and only 7.5% in the highest, a phenomenon that the authors note has been reproduced in almost all sectors, except agriculture, which increased its turnover compared to the previous year, or food distribution, where income fell by 3%, unlike hotels or restaurants, which lost 51%.

The document also reveals that, in addition to households with less income, the youngest, immigrants and women have suffered a greater impact of the closures during the pandemic, highlighting that workers between 20 and 30 years were affected by the stoppages in 32% of the cases among women and in 25% among men, so it calls for measures to prevent inequality from stagnating or increasing by 2050.

However, the paper also acknowledges that the shield social and economic impact of the coronavirus, valued at 20% of GDP, has also served to moderate its effect in the increase in inequality, noting that the measures helped to cut by more than 20 percentage points in the proportion of people without income and in more than 10 of people with low income, slowing down in about 13% of the increase in inequality during the first wave of the coronavirus.