NEWSLETTER Issue 3/2019 […]
Newsletter 3/2019
Published in Newsletters
Insights
In our Insights section, you can access our free publications, our regular newsletter and more information on transfer pricing and our firm
Functional characterization and expense structure
Published in Transfer pricing news
In transfer pricing projects, both for the preparation of annual documentation and for the definition of a transfer pricing policy or specific valuation criteria, one of the aspects that is most cryptic for clients is the so-called functional analysis or distribution of the functions exercised, assets employed and risks assumed by each of the group […]
The Spanish High Court clarifies the application of the interquartile range in the Transactional Net Margin Method
Published in Transfer pricing news
The ruling of the Spanish High Court (“Audiencia Nacional”) nº 1072/2019, of 6 March, has pronounced on two relevant aspects in the practical application of the Transactional Net Margin Method (TNMM): The use of multi-year averages in both the comparable entities and the tested party; and The most suitable point in the interquartile range at […]
Profit participating loans: an area of transfer pricing risk
Published in Transfer pricing news
Profit Participating Loans enjoy a certain popularity thanks to their enormous flexibility and the advantages provided by their mercantile and accounting regulation in Spain. However, the recent National Court Decisions of 28 June 2018 and 1 February 2019 point to the variable remuneration of profit participating loans as a source of controversy with the Tax […]
Spanish Tax Administration (STA) sends letters to SMEs with “anomalous” margins
Published in Transfer pricing news
According to the Europa Press news agency, the Spanish Tax Administration (STA) has launched for the third consecutive year a letter campaign aimed at small and medium-sized enterprises, in which it informs them of “inconsistencies” between the data declared by them and that collected from other sources of tax information. Among the “inconsistencies” highlighted are […]
OECD issues a discussion paper on taxation of the digital economy
Published in Transfer pricing news
On 13 February 2019, the OECD released a consultation document “Addressing the Tax Challenges of the Digitalization of the Economy”, which follows a policy note issued on 29 January 2019. A significant number of interested parties placed their comments on the discussion document by 6 March, as well as participated in the public consultation meetings […]
Transfer pricing in the 2019 Spain’s Tax Audit Plan
Published in Transfer pricing news
The Spanish Tax Administration has published the guidelines for the tax audit plan for 2019, and the actions affecting the transfer prices of multinational groups will be particularly affected by the practical implementation of the measures approved in the OECD’s BEPS Project. The exchange of tax information (Country by Country Report, aggressive tax planning, etc.), […]
TP Alert – CbCr notification by year end
Published in Newsletters, Transfer pricing news
REMINDER: Spanish resident companies should notice CbCr reporting entity to the Tax Administration before year end Spanish resident subsidiaries belonging to Multinational Groups obliged to file the Country-by-Country Report must notice to the Spanish Tax Administration the identification data of the reporting entity. For companies whose fiscal year coincides with the calendar year, […]