We hope the following information is of your interest. Please keep in mind, that the deadline for filing the following declarations is April 21st, 2025: Form 303, quarterly VAT return. Filing deadline for taxpayers included in the Immediate Supply of Information (“SII”) system is April 30th, 2025. Form 349, (quarterly/monthly) EC Sales List (Intra-Community…
On 17 March, the Official State Gazette (the “BOE”) published the 2025 Annual Tax and Customs Control Plan, which sets out new tax control guidelines for the coming year. In particular, the transfer pricing control will be intensified, with a focus on improving tax compliance. Automated risk analysis tools, greater specialisation and international cooperation will…
Non-resident taxpayers who move to Spanish territory and who, as a result of this move, acquire tax residence in Spain, may opt to be taxed under the special regime for posted workers, better known as the Beckham Law. Broadly speaking, the regime allows the taxpayer to apply a territorial criterion for tax purposes for…
Pursuant to Royal Decree 1007/2023 and the Ministerial Order published on 10/28/2024, which introduce new obligations regarding invoicing software and the Verifactu system versus non-verifiable systems, we would like to update recent developments confirmed by the Spanish Tax Agency (AEAT) in the informative session of 01/21/2025, detailed in section 4 of this circular. 1. Who…
On 14 November, the Madrid Assembly passed Law 4/2004, which establishes a deduction in Personal Income Tax (PIT) for investments made by new taxpayers from abroad. This new tax incentive, commonly known as the Mbappé Law, has the following features: 1. Deduction in Personal Income Tax (PIT) A new tax incentive is created in…
The following is a summary of the most significant recently approved tax measures that will be effective for fiscal years 2024, 2025 and beyond. 1. GLOBAL MINIMUM TAX. The Global Minimum Complementary Tax (“Pillar 2”), which aims to guarantee a minimum effective taxation of 15% in each jurisdiction in which large groups operate, will…
In the following we summarized some important filing deadlines. We hope this information meets your interest. Please keep in mind that 20th of January 2025 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…
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 2024. Local business tax (IAE). Immediate Information Supply (IIS). Country by country information (form 231). Please find the corresponding content mentioned below. Corporate Income…
The new tax incentive, named after the French football player Kylian Mbappé (one of the many taxpayers who may potentially benefit from it), will entitle non-resident taxpayers (HNWI, investors…) relocating to the Community of Madrid to apply very significant deductions on Personal Income Tax (PIT). With the final approval of the “Mbappé Law”, the…
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…
October 21st 2024, 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. Form 349, (quarterly/monthly) EC sales list. Form 111 (quarterly/monthly, as applicable), withholdings and payments on account of personal income tax on earned income….
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…
