
We are writing to remind you of the obligation to file Form 232 – “Informative return on related-party transactions and on transactions and situations relating to countries or territories classified as tax havens” – during the current month, November 2024.
Form 232 covers and expands on information previously included in Form 200, the annual Corporate Income Tax return.
The most important aspects of this tax obligation are the following ones:
1. Filing deadlines
Form 232 must be filed during the month after a period of ten months has elapsed, counted from the end of the tax period to which the reporting relates.
For tax periods that match the calendar year, the filing deadline will be during the month of November and will include the related party transactions carried out by the company during fiscal year 2023.
2.Reporting parties
The requirement to file Form 232 – by electronic means only – applies to taxpayers of Corporate Income Tax and Non-Resident Income Tax acting through a permanent establishment, and entities incorporated abroad with a presence in Spain under the income allocation regime, which conduct the following transactions:
a) Transactions conducted with the same related person or entity whenever the total consideration for all transactions in the tax period exceeds EUR 250,000 calculated on an arm’s length basis.
b) “Specific transactions” with related persons or entities, whenever the total amount of this type of transaction in the tax period exceeds EUR 100,000 regardless of whether they were conducted with different related persons or entities. For these purposes, the following are considered as “specific transactions”:
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- Those conducted by personal income taxpayers under the flat-rate calculation method, in the performance of an economic activity, with entities in which they or their spouses, ancestors or descendants, individually or jointly hold a percentage equal to or greater than 25% of share capital or equity
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- Business transfer transactions
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- Transactions involving the transfer of securities or shares representing equity interests in any kind of entity that is not listed on one of the regulated securities markets, or that is listed on a regulated market in a country or territory considered as a tax haven
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- Property transfer transactions
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- Transactions involving intangible assets
c) Regardless of the total amount of consideration for all transactions conducted with the same related person or entity, there is always an obligation to file Form 232 for transactions of the same type, which also use the same valuation method, whenever the total amount of such transactions in the tax period exceeds 50% of the entity’s turnover.
d) Form 232 must be filed also in cases where the taxpayer conducts transactions or holds securities in countries or territories classified as tax havens, regardless of the amount.
e) The obligation to file Form 232 applies to taxpayers who have applied the reduction provided in Article 23 of the Spanish CIT Act for income from the sale of certain intangible assets (Patent Box) to related persons or entities.