Those international groups with business figures over Euros 750 million in the 12 months prior the start of the tax period should inform to the Spanish Tax Authorities with the submission of information country by country by means Form 231, created because of the action plan developed by the OCDE on Base Erosion and Profit Shifting (BEPS).
The deadline for the submission of the Form 231 ends twelve months after the end of the tax period. This means organizations whose financial year is the calendar year must submit this Form before 31 December 2017.
Who is required to submit this Form?
This duty to inform is aimed at multinational groups whose aggregated net turnover exceeds 750 million euros. Once this requirement is met by the group, attention must be paid by the following organizations:
- Companies resident in Spanish territory which have a dominant position within their group and which are not dependent on another company.
- Companies resident in Spanish territory which are directly or indirectly dependent on a non-resident company which is not dependent on another company.
- Permanent establishments of non-resident companies located within Spanish territory.
In any case, if another group entity fills the group information in a foreign country, the Spanish entity should notify the Spanish Tax Authorities regarding some certain limited information in the Form 231.
In addition to the Country by country report (Form 231), and by way of a reminder and in connection to the regulations on transfer pricing, the Corporate Income Tax Regulations lays down two types of obligations which must be met by organizations belonging to a group of companies: transfer pricing documentation (local and master file) and information about related party transactions (Form 232).
If the business figures of the Group in the 12 months prior the actual fiscal year were over Euros 750 million, please do not hesitate to contact us and discover how we can help you.