Related-party transactions. Changes to the information to be provided to the tax agency

Actualizado: 27 may 2021

The Spanish Ministry of Finance has recently published a Draft Order, introducing a new informative tax statement (Form 232), which will include information on related-party transactions and transactions and circumstances related to tax havens.

The purpose of Form 232 is to gather specific information on related-party transactions, which was included before in the Corporate Income Tax statement (Form 200). Thus, for tax periods beginning after 1 January 2016, the information and documentation on related parties and related-party transactions should not be included in Form 200, but in the new form, which is still pending approval.

Therefore, this new informative statement must be filed separately (Form 232) and its deadlines are different than that applicable to the Corporate Income Tax statement. This new statement will include much of the information taxpayers are already providing in Transfer Pricing documentation (Master-File, Local-File and Country-by-Country reporting), in addition to information on transactions which are otherwise not subject to reporting.

Who is required to submit Form 232?

The following legal persons or related parties must submit and fill out the new informative statement:

  1. Organizations whose transactions with the same related person or organization within a single tax period exceed a €250,000 aggregate transaction value under arm's length conditions.

  2. Organizations whose transactions with the same related person or organization within the tax period exceed a €100,000 aggregate value under arm's length conditions, provided they are the same type and the same valuation method is used.

  3. Organizations conducting specific transactions (business transfer, property transfer, etc.), provided the aggregate amount of each transaction exceeds €100,000. However, in this case it is not mandatory that the same valuation method is used.

  4. Regardless of the consideration amount of all transactions conducted with the same related person or organization, it is also mandatory to inform about transactions of the same nature and using the same valuation method if the aggregate amount of such transactions exceeds 50% of the organization's turnover.

  5. Regarding transactions with related persons or organizations when applying the reduction in income from specific intangible assets, the content required in the Corporate Income Tax statement of 2015 are maintained.

  6. Lastly, as in 2015, information on any transactions and circumstances related to tax havens must also be provided.

Deadline for submission

Regarding the deadline, if the Order is finally approved with its current wording, Form 232 must be submitted from 1 May to 31 May following the tax period the information to be submitted refers to. However, there is a specific deadline for tax periods started in 2016, which is from 1 November to 31 November 2017.

Again, the Spanish Tax Agency has confirmed its desire to control related-party transactions. Therefore, strictly respecting the obligations on this matter prior to the introduction of Form 232 is of paramount importance. If the organization has not analyzed in detail these transactions prior to the submission of the Form, it can barely be properly filled out, which may lead to sanctions from the Spanish Tax Agency.

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