Oct 27, 2022 | Tax Flash
According to article 13.4 of the Corporate Income Tax, Corporate Income Tax and Non-Resident Income Tax (IRNR) taxpayers acting through a permanent establishment in Spain, as well as entities under the income attribution regime incorporated abroad with presence in Spanish territory, must file Form 232 within the month of November 2022.
This form considers the information of the intercompany transactions, with special attention to specific operations and their volume. In this sense, our Transfer Pricing Department supports and come along with the taxpayers that consider the obligation to validate and submit the information for its formal presentation.
You can access to the regulation of this form HERE
Nov 9, 2021 | Tax Flash
The DGT, in its binding consultation V1067-21, of April 23, 2021, on the forgiveness of credits between sister entities, fully owned by the same company, establishes that in the absence of a special rule, it is considered that the dependent owner of the credit makes a distribution of reserves in kind to its parent, and that this contributes it to the other subsidiary. Nevertheless, with respect to the parent company, it points out that it obtains a taxable income, without prejudice to the fact that the exemption may be applied, and on the other hand the value of its participation in the entity to which the loan is forgiven is increased.
Given that the exemption on the perception of dividends reaches, from January 1, 2021, 5%, it should be understood that these write-offs within a group have a cost in the IS of the parent / group of 1.25% (5% x 25%).
