Tax Updates
Personal Income Tax exemption for work carried out abroad by directors and board members
The judgment focuses on determining the scope of the expression “employment income received for work effectively carried out abroad” provided for in Article 7.p) of the Personal Income Tax Act in order to determine whether it can be applied to all employment income or only to some, in particular, to employment income derived from […]
Remote work as a potential permanent establishment risk
Globalisation and technology have brought about a radical change in the international business model to, among other things, divert profits to countries with low or no taxation. This has been significantly aggravated by the pandemic, and remote work has come to our day, but is it here to stay? It seems to be so. After […]
Financial penalties for failure to register the Annual Accounts with the Commercial Registry in due time
Since the entry into force of Royal Decree 2/2021, of 12 January, approving the Regulation for the implementation of Act 22/2015, of 20 July, on the Auditing of Accounts, commercial companies that fail to register their Annual Accounts in due time with the Commercial Registry may be subject to financial penalties. Until the regulation came […]
Sales tax: the tax for companies making online sales to US end-customers
European online sellers selling goods to final consumers in the US should be aware of the Sales Tax obligations. Sales Tax generally applies to the sale of goods to final customers (B2C sales). It does not apply to sales carried out between businesses. Hence B2B sales fall out of the scope of Sales Tax. Each […]
Company directors: application of the exemption relating to earned income received for work effectively carried out abroad
Company directors: application of the exemption relating to earned income received for work effectively carried out abroad Article 7.p) of the Spanish Personal Income Tax Act On 4 November 2021, the High Court of Justice of Catalonia issued an interesting ruling, which we will comment on briefly as, without doubt, it is a […]
The CJEU condemns Spain for Form 720
The CJEU condemns Spain for Form 720 The Court of Justice of the European Union has just published its ruling on the Declaration on assets and rights located abroad (Form 720). With this ruling, the CJEU condemns Spain for failing to fulfil its obligations with regard to the free movement of capital. […]
Extemporaneous offsetting of NOLs
Extemporaneous offsetting of NOLs Authors: Andreu Bové (Partner of Bové Montero y Asociados) and Jorge Bonilla (Tax department of Bové Montero y Asociados) The Spanish Supreme Court confirms through two judgments that the offsetting of Net Operating Losses (NOLs) is a right and not a tax option. With these rulings, the High […]
Newsletter: Unconstitutionality of Municipal Capital Gains
The Constitutional Court has advanced, by means of an informative note, the content of a judgement declaring the unconstitutionality of the Tax on the Increase in Value of Urban Land (IIVTNU), the well-known “plusvalía municipal”. In particular, the Supreme Court declares the unconstitutionality and nullity of Articles 107.1, 107.2 (a) and 107.4 of […]
New law on measures to prevent and combat tax fraud
New law on measures to prevent and combat tax fraud The recently published Anti-fraud Act transposes the European Union (EU) law on tax avoidance practices and, in addition, introduces changes designed to establish the parameters for tax justice, and to facilitate actions aimed at preventing and combating fraud by strengthening tax […]
New VAT for E-commerce. Are you ready for changes starting 1st July?
Author: Andreu Bové, Partner of Bové Montero y Asociados On 1 July, the scope of the so-called “”One Stop Shop” for VAT will be extended. Currently this “one-stop” tax collection system is already being used for certain telecommunication services. The implementation of this new “One Stop Shop (OSS)” system has as its main […]
Digital Services Tax
In light of the recent approval and entry into force of the Digital Services Tax Act and its implementing regulations, affected companies must file their first tax return during the month of July 2021. In this update we will briefly outline the international tax situation and the practical application of this new tax in Spain. […]
Tax updates for 2021
The Spanish General Budget Act for 2021 has introduced several tax changes that aim to increase tax revenues. The national regulation was passed at the last minute, having been published on 30 December 2020 to be applied with immediate effect from 1 January 2021. Some of the main tax measures are: Personal Income […]
RDL 19/2020: main commercial and tax changes
RDL 19/2020: main commercial and tax changes At Bové Montero y Asociados we summarise and analyse the main tax and commercial changes adopted in Royal Decree-law 19/2020, of 26 May 2020. These include changes to: Deadlines for preparing and approving annual accounts Filing annual accounts with the Commercial Register Deferring tax liabilities Filing […]
New COVID-19 tax measures
We highlight some of the latest tax measures introduced by the government, with effect from 23 April 2020: 1. Reduced 0% VAT rate for specific medical equipment. Zero-rate VAT will be applied to supplies of goods, imports, and intra-EU acquisitions of goods when the recipients are hospitals, clinics, public bodies, or private centres that […]
Reduced VAT rate for electronic books, newspapers, and magazines
From 23 April 2020, electronic books, newspapers, and magazines will be taxed at 4% VAT. Until now, the Spanish Tax Agency had repeatedly responded to queries by applying a higher VAT rate compared to goods supplied in printed format, only allowing the 4% VAT rate for books that had been transferred to reading […]