A new information return on related-party transactions and transactions with tax havens is approved
It is well known that the Administration is interested in knowing the type, quantity and valuation of the operations that companies carry out with other economic agents, with whom they may have a related relationship, in order to avoid as far as possible the tax avoidance that could be caused by a "special" valuation of said operations, different from the one that has been defined as market valuation.
In this regard, the various tax regulations include obligations regarding the provision of information in these cases, both generally and more specifically. In the case at hand, it is the Corporate Income Tax Law and its implementing regulations that define and determine the reporting requirements for related-party transactions.
On August 30, Order HFP/816/2017, of August 28, was published, approving model 232 of informative declaration of related operations and of operations and situations related to countries or territories classified as tax havens.
Who is affected by this reporting obligation?
All taxpayers subject to Corporate Income Tax and those subject to Non-Resident Income Tax who act through a permanent establishment, as well as entities under the income attribution regime established abroad with a presence in Spanish territory, who carry out certain operations with related persons or entities (in accordance with the Corporate Income Tax Law) or with territories classified as tax havens, will be obliged.
What operations should be taken into account?
- Related party transactions carried out with the same person or entity whose consideration, at market price, exceed, in the whole of the fiscal year, the figure of 250.00 euros.
- The previous limit will be 100,000 euros If it involves the following operations:
- between an entity and a businessperson who carries out their activity paying taxes under the so-called module system, provided that either they, or their spouses, ascendants or descendants individually or jointly, participate in said entity in a percentage equal to or greater than 25%
- business transmissions
- transfers of securities or shares in unlisted entities or entities listed on markets located in tax havens
- real estate transactions
- transactions involving intangible assets
- No limit applies, that is, any transaction of the same type using the same valuation method must be taken into account when its combined amount in the tax period is greater than 50% of the entity's turnover.
- Income from certain intangibles when the taxpayer applies the reduction provided for in Article 23 of the Corporate Income Tax Law.
- Transactions or holding of securities in countries or territories classified as tax havens, regardless of the amount.
Can the Information Obligation be excluded in any of the above operations for any reason?
Yes, in the case of related-party transactions carried out between entities that are part of a tax consolidation group (without prejudice to the provisions of Article 65.2 of the LIS) or between the members of AIE, UTE and SDIR.
They are also excluded in operations within the scope of public offerings for the sale or acquisition of securities.
What is the deadline for submitting form 232?
It will be submitted in the month following the ten months after the close of the fiscal year, that is, if it coincides with the calendar year, the submission will be made during the month of November in relation to the previous year.
CONCLUSIONS:
The detection and assessment of transactions between related parties takes on particular importance with the creation of this new reporting obligation. This is in addition to the existing documentation requirements for such transactions. The correct assessment of these transactions will determine the tax liability of the parties involved and avoid the potential application of the severe penalties applicable to such transactions.
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A graduate in Business Administration from the University of Barcelona, she has furthered her training in tax and accounting by attending courses and seminars offered by the EAE Business School, the College of Economists, the Bar Association, and the Terrassa Chamber of Commerce.
She combined her studies with work in the family business and as a substitute in the production audit department of Bimbo SA.
She has spent her professional career at Àmbit Assessor, where she joined in 1991 to support the accounting and tax department, becoming a consultant a few years later.
Since 2000, she has been the managing partner of the company.
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