precios de transferencia consolidacion

In our previous post we already reported on the general guidelines of the Annual Tax and Customs Control plan for fiscal year 2022. Here, we want to pay attention to two areas of paticular importance in the Spanish Corporate income tax:

 

Transfer pricing and international transactions: the internationalization and integration of the economic activity on a worldwide basis has given rise to the specific importance in the current economy of international tax-related transactions. This fact, together with the tax risk inherent to this type of transactions, has caused this to be an area of special focus for tax audits in fiscal year 2022.

Tax consolidation groups: tax audits on taxpayers subject to this special scheme shall also be extended to groups that are registered in the Tax authorities census but which do not respond to the parameters of large dimension or structure.

✔ The areas which, given their importance or tax risk, will continue to be of major importance in 2022 in the transfer pricing area are:

  1. Business restructuring;
  2. Valuations of transfer or intra group assignments of assets, mainly intangibles; and,
  3. The deduction of expenses that can significantly decrease the taxable base, such as royalty payments derived from the assignment of intangibles, intra group services or recurrent losses.
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✔ Another area of special focus will be verifying the correct declaration of withholding taxes to which big sized companies are particularly obliged when they pay dividends, interest and royalties to nonresidents without a Spanish permanent establishment.

✔ On payments to nonresidents, special attention will also be given to determine whether the nonresident entity is the beneficial owner of the Spanish sourced income, so as to avoid the abuse of the European regulations that pretend to facilitate the freedom of capital movements within the EU territory.

✔ With respect to corporate income tax groups, the existing control on these schemes will be extended to groups with a reduced turnover, a limited number of entities belonging to the group and in which intra-group transactions giving rise to intra-group eliminations inherent to this scheme are limited. The Spanish tax authorities will also focus on pending tax losses carried forward to monitor that they are offset according to the applicable corporate income tax rules.

✔ In light of the above, the correct application of the tax regulations becomes of major importance as well as the consistency of the information that is reflected in the tax returns filed before the Spanish tax authorities.


Publicado el 03-2022 por PBS