We’re all back to work after the summer holidays and there is fresh news to share: the Spanish Official Gazette published an Order on 30 August adopting Form 232, an informative statement for related-party transactions and transactions or situations involving tax havens.
As we already informed you in the article posted on our blog at the end of June, this new statement includes the duty to inform the Tax Administration of some details regarding related parties and related-party transactions for the tax periods starting after 1 January 2016. Before this Order, such information was provided in several sections of Form 200 for Corporate Income Tax.
The Spanish Tax Administration has also expressed in this Order its will to control those transactions carried out with related parties which would otherwise be difficult to report if those transactions are not analyzed in detail.
Who must file Form 232?
Any legal persons meeting the following requirements must complete and file the new informative statement:
Companies which have conducted one or more transactions with the same related person or party within the tax period exceeding € 250,000 in aggregate terms.
Companies which have conducted one of the following transactions (provided the aggregate amount of each type of transaction exceeds Euros 100,000 at market value):
transfer of business,
transfer of real estate,
transactions involving intangible assets,
transactions conducted by Personal Income Tax payers for conducting an economic activity to which the objective assessment system applies with organizations in which such payers or their spouses, children or parents, individually or jointly, hold at least 25% of the share or equity capital.
Companies which, regardless of the consideration amount of all transactions conducted with the same related person or organization, must inform about transactions of the same nature and using the same valuation method, provided the aggregate amount of such transactions exceeds 50% of the organization's turnover.
Companies conducting transactions with countries or territories considered tax havens, regardless of the amount.
Companies transferring intangible assets to related persons or organizations and applying the tax reduction stipulated in article 23 of the Spanish Corporate Income Tax Law.
This new form must be filed within the month after the ten months following the end of the tax period to which the information to be submitted refers. So, for example, for tax periods ended 31 December 2016, Form 232 must be filed from 1 to 30 November 2017.
Given that the failure to complete the Form thoroughly may lead to sanctions, IVC will be pleased to help you to analyze any related-party transactions and provide assistance to complete and file Form 232.