Corporate Taxpayers as well as non-residents who operate in Spain through a permanent establishment are obliged to report annually on the transactions they carry out with persons or entities considered to be tax related, through Form 232. Corporate Taxpayers, as well as non-residents who operate in Spain through a permanent establishment, are obliged to report annually on the transactions they carry out with persons or entities considered to be tax related, through Form 232.

 

This information was traditionally reported in the annual Corporation tax return and was transferred to this new form last year. In it, not only are the mentioned operations reported but those carried out with countries or territories qualified as tax havens are also mentioned.

 

Although it sought to simplify the obligations of taxpayers, it has resulted in an extension on their obligations.

 

We strongly recommend Spanish taxpayers obliged to its filing, to apply well in the preparation and presentation of this declaration given that its lack of presentation is punishable by the tax administration.

 

    • This statement must be presented when the market value of the operations carried out with the same related person or entity exceeds the threshold of 250,000 euros in the year. With respect to financing operations with related parties, the Spanish General Directorate of Taxes has clarified in various resolutions that, for the purpose of calculating the limit of 250,000 euros, only the consideration of the operation must be computed, which means that, in the case of loan operations, interest must be calculated. Since the order that regulates the form establishes the obligation to inform based on “the consideration of the set of operations in the tax period”, it is understood that it must be informed only when the interest for the year exceeds the limit mentioned above.

 

    • This limit does not operate when the operations are classified as “specific”, in accordance with article 18.3 of the Corporate Income Tax Law, such as business transfer transactions, on real estate or on intangible assets, for example. Although the law does not say so, the Tax Regulation seems to clarify that the “operations” on real estate refer to the transmissions of the same, which would exclude a lease from the consideration as a specific operation. Specific operations must be reported provided that the combined amount of each type of operation in the tax period exceeds 100,000 euros, regardless of the assessment method used.

 

      • Irrespective of the amount of the consideration for all operations carried out with the same related person or entity, there will always be an obligation to present Form 232 and complete the “Information on transactions with related persons or entities (Article 13.4 RIS)” with respect to those operations of the same type that in turn use the same method of valuation, provided that the amount of the set of such operations in the tax period is greater than 50% of the turnover of the entity.
        This limit assumes, for example, that companies with a zero turnover figure must report all the related party transactions of the year.

     

    • Finally, it should be noted that the lack of presentation is punishable by a fixed pecuniary fine of 20 euros for each piece of data or group of data referring to the same person or entity, which should have been included in the declaration, with a minimum of 300 euros and a maximum of 20,000 euros. These limits are reduced by half when the presentation is made after the deadline but without prior request from the administration.

 

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Publicado el 11-2018 por PBS