Jul 25, 2024 | Audiconsultores
It has been published, as a transposition of Council Directive (EU) 2022/2523, of December 14, 2022, relating to the guarantee of a global minimum level of taxation for groups of multinational companies and large national groups in the Union, a Draft Law to establish a Complementary Tax to guarantee a global minimum level of taxation of 15% for said entities.
This Draft Law involves following the recommendations of what is known as Pillar 2 of the OECD BEPS program, an initiative that seeks to fight against the erosion of the tax base and the shifting of profits, to which the Member States have adhered and which was integrated into the aforementioned Directive.
This rule will allow the establishment of a global minimum rate of 15% for multinational groups or large national groups. Specifically, it will apply to those with a net amount of their consolidated turnover equal to or greater than 750 million, according to the consolidated financial statements of the ultimate parent entity in at least two of the last four immediately preceding years.
The configuration of the Complementary Tax is based on three expressions:
- The national complementary tax. Its main purpose is to guarantee that entities located in Spanish territory achieve a minimumtax rate of 15% in Spain.
- Primary complementary tax. In this case, the tax will be applied when the parent company of a multinational group located in Spainobtains income from foreign subsidiaries, which are considered entities with a low tax level, as they bear an effective tax rate of less than 15%, when the jurisdictions in which they are located would not have implemented an admissible national complementary tax.
- Secondary complementary tax. It acts as a closure system and is activated when some of the multinational group companies have obtained income abroadthat has not been taxed at 15%. The difference between the primary tax and the secondary tax is that the latter does not fall on the parent company, but on subsidiaries of the group located in Spain.
The tax will come into force retroactively from January 1, 2024, and will accrue the last day of the tax period, coinciding with the fiscal year of the group’s ultimate parent company. However, the first informative declaration on the Complementary Tax and the communications will be presented to the Tax Administration at the latest on June 30, 2026, and the maximum deadline to submit the first tax declaration will be July 25, 2026.
Should you need further information please do not hesitate to contact us.
Access to the full Draft Law HERE
Mar 28, 2023 | Audiconsultores, Legal Flash
The Digital Nomad Visa is available for non-EU citizens (either employed or self-employed) who want to establish themselves in Spain and work remotely for foreign companies. The non-EU citizen who intends to carry out an employment or professional activity at a distance and who can prove any of the following circumstances: graduate or postgraduate from a university or business school of recognized prestige, has professional training and accredits more than 3 years of professional experience.
For the regulation of this visa, the Law differs depending on whether the applicant is an employee or a self-employed person, in this case, the applicant can only work for companies located outside Spain or self-employed workers, the professional can work for foreign companies and for companies located in Spain without exceeding 20% of the total turnover of their professional activity.
Applicant requirements:
– Be over 18 years of age and not to be irregularly present in Spanish territory
– Not to have a criminal record in Spain and in the countries where he/she has resided during the last two years.
– Not to appear as rejectable in the territorial space of countries with which Spain has signed an agreement in such a sense.
– To have a public insurance or a private health insurance arranged with an authorized Company in Spain
– Have sufficient economic means for themselves and their family members during their period of residence in Spain.
Company requirements:
– The existence of a real and continuous business activity for at least one year of the company or group of companies whom the applicant maintains an employment or the professional relationship.
– Documentation proving that the employment or professional relationship can be carried out remotely.
Depending on the employment or professional relationship:
– In the case of an employment relationship, the existence of this relationship between the worker and the company not located in Spain for at least the last three months prior to the submission of the application must be accredited, as well as documentation proving that the company allows the worker to perform the work activity remotely.
– In the case of the existence of a professional relationship, it must be proven that the employee has maintained a professional relationship with one or more companies not located in Spain for the previous three months, as well as documentation proving the terms and conditions under which he/she will carry out the professional activity at a distance.
If you need more information access HERE
Mar 21, 2023 | Audiconsultores, Tax Flash
The Spanish Tax Administration has published prior public consultation on the transposition into Spanish law of Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union (Pilar 2).
Directive (EU) 2022/2523 establishes a top-up tax for multinational groups with consolidated income of more than 750 million euros through two interlocked rules, (i) the Income Inclusion Rule (IIR) and ( ii) Undertaxed Profit Rule (UTPR), in support of the former, which guarantee that the income obtained by said multinational groups located in Member States of the European Union or by multinational groups whose parent company is located in a Member State of the European Union (in the latter case, whether the group companies are located in the European Union or outside it) effectively pay a global minimum rate of 15%.
Regarding subsidiaries in Spain of this type of groups, it must be noted that if the UTPR rule applies to its group because it is located in a non-EU country that does not apply an admissible IIR, or in a country with low taxation, they will be taxed by said top-up tax.
In principle, it is proposed that the transposition of Directive (EU) 2022/2523 be carried out through its own standard of legal rank, and it must be in force on December 31, 2023 for it to be applied to the tax periods that begin on or after that date, in practice in 2024, although the UTPR rule will apply for tax periods that begin on or after December 31, 2024, in practice on January 1, 2025 .
Access the full consultation HERE
Mar 14, 2023 | Audiconsultores, Tax Flash
On February 27th, was published in BOE the resolution of February 6th, 2023, which establishes the general guidelines of Tax and Customs Control Plan of 2023, which includes the reinforcement of the 360º strategy on transfer pricing purposes.
Under this line of action, the Tax Administration will intensify management and control with the identification of tax risks that may affect transactions among related parties, as a result from the incorrect determination of transfer pricing policies in multinational groups.
Access the complete resolution HERE
