This time we would like to inform you of the modifications incorporated into the Corporate Income Tax Regulations. They are as follows:

1. Information and documentation of related-party transactions:

 Regarding the country-by-country information that certain entities must provide when the net amount of the group's turnover is 750 million euros:

• The requirement that they had been designated by their non-resident parent company to prepare the information for entities is eliminated:

1. Residents in Spanish territory dependent on an entity not resident in Spanish territory that is not at the same time dependent on another.
2. Permanent establishments in Spanish territory of non-resident entities of the group.

• There is no obligation to provide information (dependent entities or permanent establishments in Spanish territory):

1. When the multinational group has designated a constituent subsidiary of the group that is resident in an EU Member State to submit the information.
2. When the information has already been submitted in its territory of tax residence by another non-resident entity appointed by the group as a surrogate of the parent entity.

If the subrogee entity has tax residence outside the EU, it must comply with the directive on administrative cooperation in tax matters.

If the non-resident entity refuses to provide all or part of the information, the resident entity or permanent establishment will submit the information they have and notify the Tax Administration of this fact (12 months).

2. New exception to the obligation to withhold (from 01/01/2018).

The amounts paid by open pension funds as a result of the redemption or transfer of shares in investing pension funds or plans.

3. With effect for tax periods beginning on or after 01/01/2018, the party obliged to withhold or pay on account is the insurance entity in operations carried out in Spain domiciled in another Member State of the European Economic Area that operate in Spain under the freedom to provide services regime.

4. For the procedure of compensation and credit of credits required from the Public Treasury, the regulation (art. 69) is adapted for the modifications made in the IS Law of 2016, regarding the conversion of assets for deferred tax.

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Lara Escudé

Tax and accounting consultant at Àmbit Assessor

A graduate in Business Administration from the University of Barcelona, ​​she supplemented her studies with courses in customer service and corporate tax. While working and studying, she worked in sales and teller operations at La Caixa d'Estalvis i Pensions de Barcelona (now Caixabank) in 2007. From 2010, she worked as an advisor and accountant at Fiscalsegur and PKF Asesores. In March 2017, she joined Àmbit Assessor, SL as a tax and accounting consultant.

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