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October 2018 – TPS News Alert

Published in Newsletters



The Filing period for Transfer Pricing Reporting (Form 232) is due in November

Spanish resident companies and permanent establishments in Spain with tax year ending 31 December 2017 must file the Tax Reporting (Form 232) on related-party transactions and transactions/investments in tax havens during the month of November 2018. For those taxpayers with a different tax year closing date, the filing period is the eleventh month after the year-end.
Form 232 must be filed by electronic means through the Tax Agency’s website.

What must be included in Form 232?

Form 232 must be filed when the following transactions/positions should be reported:
1.- As a general rule, related-party transactions subject to transfer pricing documentation requirements, carried out with the same related party when they totaled EUR 250,000 or more. Remember that the following related-party transactions are excluded from the transfer pricing documentation:
  • Those carried out between companies forming the same tax consolidation group (“tax unity”). This exclusion does not apply to the intragroup cessions of intangible assets benefiting from the “patent box” regime.
  • Those carried out between an Economic Interest Grouping (EIG) or Temporary Consortium and its members (or other companies being part of the same “tax unity” of its members). However, this exclusion does not apply to the transactions with permanent establishments abroad of a Temporary Consortium.
  • Those transactions carried out in the framework of a supervised public offering for sale or a buy-out of securities.
2.- The following types of related-party transactions (excluded from the simplified documentation regime) when exceeding of EUR 100,000:
  • Related-party transactions between individuals carrying out business activities taxed under the simplified tax regime (“modules”) in the Personal Income Tax, and entities in which the individuals, their spouses, ancestors or descendants held at least a 25% interest in equity;
  • On-going business transfers;
  • Sales of shares in non-listed companies or companies listed in tax havens;
  • Transactions on real estate;
  • Transactions on intangible assets.
3.- Related-party transactions, regardless of their amount, of the same type and using the same transfer pricing method when they exceed 50% of the reporting entity’s turnover;
4.- Related-party transactions involving the license of intangible assets to related parties or entities and applying the “patent box” regime; and
5.- The transactions carried out or the securities held in tax havens, regardless of their amount.

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