Spanish anti fraud legislation

The draft Law for the prevention and fight of tax fraud is currently under negotiaton in the Spanish Parliament, after its approval by the Council of Ministers on Oct. 13, 2020.

The text includes several measures affecting different taxes as well as the General tax law. With the new rules, tax amnesties shall be forbidden, the limit to appear in the list of tax debtors shall be decreased to 600,000 euro and the control on virtual currencies will be reinforced by establishing informative obligations on the hoding and transactions of such currencies.

Despite most of the measures will imply strengthening the current regulations, others will imply an improvement in the the taxpayer’s treatment such as the reduction of late payment surcharges or of penalties.

We enhance below some of the most important measures.

✔ The limit on cash payments is tightened as it is reduced from 2,500 to 1,000 euro in transactions between companies, while the limit for private individuals will remain in 1,000 euro, except for those having their fiscal domicile abroad in which case the limit is reduced from 15,000 to 10,000 euro.

✔ The production, holding or comercialitzation of double use software which permits companies hiding part of their activity is forbidden.

2018 Spanish Personal income tax filings: key issues

✔ In the event of filing out of term a tax return with a tax quote payable, withouth any previous Spanish tax authorities request, the current regulations establish surcharges of 5%, 10% and 15% when the tax returns are filed after 3, 6 and up to 12 months, respectively, as from the end of the voluntary filing perid. Such surcharge is of 20% (plus late payment interest) when the delay exceeds 12 months. With the aim of promoting the taxpayers’ voluntary payment, an increasing surcharge shall be approved, of 1% for each complete month of delay without late payment interest. If payment is done after 12 months, the surcharge will be of 15% plus late payment interest.

✔ The percentages of reduction of penalties will be increased from 50% to 65% in cases of tax assessments made in agreement and in the cases when payment is made in due term without interposing any appeal against the tax quote or the penalty, the reduction increases from 25% to 40%. In this way, if we take into account the minimum 50% penalty that would apply on the unpaid tax quote, such penalty will be reduced by 30% in case of agreement (as it is established by the current regulations) and by an additional 40% on the resulting amount, once the 30% has been applied (thus leading to a penalty of 21%).

Spanish tax authorities approve Annual Tax Control Plan 2016

✔ Real estate properties will be valued according to the reference value of the Spanish “Catastro”, for the purposes of Transfer tax, Wealth tax and Inheritance tax. Such value is calculated by the Catastro based on the real estate property sales signed before a public notary and it is different from the Cadastral value, that will keep on being applied for Renta, Local Property tax (“IBI”) and the Local tax on the increase on Urban Land, (“Plusvalía Municipal”).


Publicado el 12-2020 por PBS