Firstly, it is important to remember that Law 13/2023 of 24 May introduced the concept of the self-assessment correction which allows taxpayers to rectify an error that may have been made when filing their self-assessment; thus, the self-assessment correction replaces, in taxes so established, the current dual system of supplementary self-assessment and correction request. The…
The deadline for filing the following tax returns is July 22th, 2024: Form 303: Quarterly VAT return. For taxpayers included in the immediate supply of information (SII) system, the deadline is July 30th, 2024. Form 349: (quarterly/monthly) EC sales list. Form 111: (quarterly/monthly, as applicable) withholdings and payments on account of personal income tax on…
The application of the “rule of effective use” in VAT has been an issue of great relevance in recent times, ensuring that certain services are considered to be performed in the country where they are used. This rule has generated great debates. To understand the importance of this rule, it is essential to understand how…
In its ruling of 22 February 2024, the Spanish Central Economic and Administrative Court (TEAC) addressed the issue of late accreditation of deductions in Corporate Income Tax (IS), focusing specifically on research, development, and technological innovation (R&D&I) activities. In the past, the Spanish General Directorate of Taxes (DGT) allowed taxpayers two options for accrediting…
Case C-207/23 before the Court of Justice of the European Union (CJEU) deals with the application of VAT under Directive 2006/112/EC, in relation to the free supply of biogas-generated heat by Y KG to other companies for activities such as wood drying and asparagus field heating. Following an inspection, the German tax administration treated these…
On 25 April, Andreu Bové, Tax Partner, and Francisco Javier Rodríguez, Tax Director, both professionals of Bové Montero, participated in the seminar of the International Association of Young Lawyers in Frankfurt, organised by AIJA. Andreu Bové was also a speaker at the conference entitled “Maximising efficiency – the classic question: Share deals vs. asset deals…
Below we highlight a series of tax obligations to be taken into account in the first quarter of 2024. Please keep in mind, that the deadline for filing the following declarations is April 22nd, 2024: Form 303, quarterly VAT return. Filing deadline for taxpayers included in the Immediate Supply of Information (“SII”) system…
Recently, on 1 February 2024, the Resolution of the Directorate General of International Trade and Investments of 31 January 2024, approving the forms for the processing and declaration of foreign investments in Spain and Spanish investments abroad, entered into force. The changes to the forms concern both their content and the deadlines for submitting them….
We hereby inform you about Form 720, which sets out the statement of the three reporting obligations contained in articles 42 bis, 42 ter and 54 bis of Royal Decree (RD) 1065/2007, of July 27 on “assets and rights held abroad“. The declaration corresponding to fiscal year 2023 must be filed between January 1 and…
Below we highlight a series of tax obligations to be taken into account during the month of December, which, in short, are the following: Corporate Income Tax Advance Payments 2023. Local business tax (IAE). Immediate Information Supply (IIS). Country by country information (form 231). Please find the corresponding content mentioned below. Corporate Income Tax…
The Assembly of Madrid has presented a Bill to temporarily modify the Wealth Tax (IP) exemption in the Madrid region during the period of validity of the Solidarity Tax on Large Fortunes. Currently, the Madrid region has a 100% exemption on the Wealth Tax quota, which exempts Madrid taxpayers from paying this tax. However, since…
The Supreme Court judgement of 23 October 2023 regarding deductions from previous years in the Corporate Income Tax establishes important precedents that will have a positive impact on taxpayers. In summary, the possibility of including in the base of the deduction for research, development and technological innovation (R&D+i) the expenses incurred in previous undeclared fiscal…
Corporate restructuring (mergers, divisions, exchanges of securities, or contributions from the branches of activity) is a common practice in the business environment. However, these transactions can result in unwanted tax burdens when they involve unrealized capital gains on the transferred assets. In order to ensure that the tax cost does not constitute an obstacle to…
With the entry into force of the new Law 13/2023, from 24 May, several tax changes have been introduced, among which we would like to highlight the new way of rectifying errors made in the self-assessments submitted. As is well known, until the entry into force of this new measure, if a taxpayer wanted…
On 28 July 2023, the AEAT published a note setting out its criteria for the transfer of mixed-use vehicles by companies to their employees. The tax implications for both personal income tax and value added tax have been the subject of debate and controversial interpretation criteria in recent years. The Tax Administration analyses the interpretative…
We hope you find the following information useful. October 20th, 2023, is the deadline for filing the following returns: Form 303, quarterly VAT return. For taxpayers included in the immediate supply of information (SII) system, the deadline is October 30th, 2023. Form 349, (quarterly/monthly) EC sales list. Form 111, (quarterly/monthly, as applicable) withholdings and payments on…
Author: Sandra Sariego, tax team leader The tax deductibility of directors´ remuneration is a topic that everyone has been talking for years. The multidisciplinary nature of the matter which cannot be understood if it is not analysed from a triple commercial, labour and tax perspective, and the fact that both Administration and the Courts have…
The new Government of the Balearic Islands has abolished the Inheritance and Gift Tax (“ISD”) for acquisitions by death or through inheritance agreements (i.e., inheritance, legacy and inheritance in life) made between parents and children, grandchildren and grandparents, and between spouses. The rule provides that only tax residents in Spain can benefit from this elimination….
The deadline for filing the following tax returns is July 20th, 2023: Form 303: Quarterly VAT return. For taxpayers included in the immediate supply of information (SII) system, the deadline is July 31st, 2023. Form 349: (quarterly/monthly) EC sales list. Form 111: (quarterly/monthly, as applicable) withholdings and payments on account of personal income tax on…
Under the exemption of Article 21 of the Corporate Income Tax Act, companies can transfer shares in other entities and benefit from an exemption of up to 95% of the profit. However, if the transferring entity has the status of an “asset-holding entity”, the exemption does not cover unrealised capital gains, resulting in higher taxation…
Are you an employee working abroad and wish to reduce your tax burden? If so, it is essential that you are aware of article 7.p of the Personal Income Tax Act 35/2006. This legal provision establishes that employees who are tax resident in Spain may apply an exemption to income from work carried out abroad….
Authors: Beltrán Sánchez, Transfer Pricing Partner, and Tomás Luciano Ramin, Transfer Pricing Assistant A few months ago, the Eighteenth Additional Provision was published in the Official State Gazette, concerning Temporary Measures in the Determination of the Tax Base in the Tax Consolidation Regime. At first glance, this measure appears to be controversial, at least…
The Income tax return campaign is already underway and this year the Personal Income Tax (“IRPF” 2022) includes new features that must be taken into account, which we will detail in this article. Deadlines for submission The deadlines to submit the Income tax return, corresponding to the fiscal year 2022, began on 11 April 2023…
With the entry into force on 23 December 2022 of Law 28/2022, of 21 December, on the promotion of the start-up ecosystem, for the first time in Spain, the regulatory framework for innovative new technology-based companies with a scalable and stable business model, known as start-ups, is regulated, including a series of incentives which, in…
Author: Montserrat Carol, Tax Lawyer at Bové Montero y Asociados On December 28th, Law 38/2022 of December 27th was published in the Official State Gazette (“BOE”), which, among other things, provides for the Temporary Solidarity Tax on Large Fortunes (hereinafter, “ITSGF”). The main features of the new tax are as follows: It…
The management of the new Excise Tax on Non-Reusable Plastic Packaging is very complex in practice, both for taxpayers and for the Tax Administration itself Author: Pablo Mateos, Tax Lawyer at Bové Montero y Asociados On 1 January 2023, Law 7/2022 of 8 April on Waste and Contaminated Land for a Circular Economy…
As a follow-up to the newsletter on the “Special tax on non-reusable plastic packaging” of last November, we inform you that on 1st January 2023, Order HFP/1314/2022, of 28 December, also came into force. This Order approves Form 592 “Special tax on non-reusable plastic packaging. Self-assessment” and Form A22 “Special tax on non-reusable plastic…
On December 28, Law 38/2022 of December 27 came into force, creating the Temporary Solidarity Tax on Large Fortunes and amending certain tax regulations. The main new features are summarised below. Temporary Solidarity Tax on Large Fortunes (“ITSGF”[1]) On the one hand, the Temporary Solidarity Tax on Large Fortunes is created to complement…
As of 1 January 2023, the new Personal Income Tax Special Regime for workers posted abroad, also known as the “Beckham Law” or the “Beckham Regime”, which has been introduced by Law 28/2022, of 21 December, on the promotion of the start-up ecosystem, will come into force. The main changes included in the new…
In the following we summarized some important filing deadlines. We hope this information meets your interest. Please keep in mind that 20th of January 2023 is the deadline for filing, among others, the following tax returns (quarterly/monthly – as applicable): Form 111: For withholdings and payments on account of Personal Income Tax on earned…
Article written by: Montserrat Carol, Tax Advisor at Bové Montero y Asociados We hereby wish to remind you that on January 1st, 2023, the “Special tax on non-reusable plastic packaging” will come into force. The tax is levied on the use of non-reusable packaging containing plastics, whether it is empty, or whether it is…
On Thursday, the Spanish Government presented a package of tax measures that would come into force as of 2023. These measures include both structural changes and measures of temporary duration during the years 2023 and 2024. Below we summarise some of these measures. Personal Income Tax (“IRPF”) In order to reduce the…
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…
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…
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…
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 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 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 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…
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[1] 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…
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…
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….
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 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…
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…
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…
International Tax – COVID-19: OECD Recommendations The OECD has recently issued recommendations on the implications of the COVID-19 crisis on cross-border workers, permanent establishments and the place of effective management of companies. Although these recommendations should be interpreted as soft law (i.e. not legally binding), they can be used as guidance until the Tax…
March 18 saw the publication in the Official State Gazette of Royal Decree-law 8/2020, of March 17, on urgent measures to tackle the economic and social effects of COVID-19, which is effective from the date of publication. We summarise the most relevant Tax measures of this Royal Decree-Law. Granting of powers for Customs clearance: The…
Royal Decree-law 82020_COVID19_ENG March 18 saw the publication in the Official State Gazette of Royal Decree-law 8/2020, of March 17, on urgent measures to tackle the economic and social effects of COVID-19, which is effective from the date of publication. We summarise the most relevant measures of this Royal Decree-Law affecting the following areas:…
