Mandatory Transfer Pricing documentation

Apr 18, 2024 | Tax Flash

The mandatory transfer pricing documentation is subject to those transactions carried out with a related party that exceed in aggregate terms €250,000 in a single tax year. In this respect, it should be noted that transfer pricing documentation for the tax year 2023 may be required as of the corporate income tax filing date for the tax year 2023 (25 July 2023).

  • The purpose of the documentation is to defend that the prices established in the related transactions are consistent with the arm’s length (or market) principle, through the preparation of a “Local File” or, if applicable, a “Master File”, in compliance with Art. 18 of the LIS and Art. 15 and 16.4 of the RIS.
  • On the other hand, we could also support you in the definition of the transfer pricing policy, in which the transactions are documented according to their nature and the market value is determined, considering the support with the preparation of contracts between related parties.

Currently, the Spanish tax administration has increased its transfer pricing inspections, concentrating its efforts on a new automated transfer pricing risk analysis system, reviewing compliance with this documentation obligation, as well as the maintenance of existing transfer pricing policies.  In the event of non-compliance with this obligation, the amount of the penalty could be significant.

In this sense, we would like to inform you that Audiconsultores ETL GLOBAL has the experience to support companies with the preparation of the required documentation, as well as with the determination of transfer pricing policies, with Arely Almaguer as head of the Transfer Pricing Department, whom you can contact directly for any advice or consultation in the application of a diagnosis and budget.

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