As we have already informed you, Order HFP/816/2017, of 28 August, was published in the Official State Gazette (BOE) on August 30th, approving the informative tax return form 232 for related-party transactions and transactions and situations related to countries or territories deemed tax havens, entering into effect on the day following its publication, applicable to tax returns corresponding to tax periods commencing from 1 January 2016.
This Order approves a new information and documentation form for entities and related-party transactions envisaged in Article 13.4 of the Corporate Income Tax Regulations (RIS). The form replaces the information included in Form 200 of the Corporate Income Tax Return (IS) on related-party transactions (information that is no longer included in this form since the IS declaration form for the year 2016).
Taxpayers required to submit this form are:
1.- Corporate Income taxpayers and Non-resident taxpayers with permanent establishment (as well as entities under the income allocation system constituted abroad with presence in Spanish territory), which carry out the following transactions with related parties or entities:
- a) Transactions performed with the same related person or entity, where the consideration of all of the transactions involved in the tax period exceeds 250,000 euros, according to market value.
- b) The specific transactions set out in Article 18.3 of the Corporate Income Tax Law (LIS) and Article 16.5 of the RIS, provided that the aggregate amount of each of type of transaction in the tax period exceeds 100,000 euros, regardless of the valuation method used, with the need to be informed in this case of each type of transaction that exceeds the aggregate limit. These transactions are the following:
- Those carried out by Personal Income Taxpayers in the performance of an economic activity in which the objective assessment method is applicable, with entities in which they or their spouses, ascendants or descendants, either individually or jointly between them, hold a percentage equal to or greater than 25% of the share capital or equity.
- Business transfer transactions.
- Transactions involving the transfer of shares or units representing the holding in equity of any type of entities not admitted to trading on any regulated securities markets, or which are admitted for trading on regulated markets in countries or territories classified as tax havens.
- Property transfer transactions.
- Intangible asset transactions.
The Order includes a special rule to prevent the fraudulent splitting of related-party transactions from taking place for the purpose of not reaching the minimum thresholds, so that even when these do not reach the aforementioned totals there is still an obligation to report transactions of the same type and the method used, when the aggregate amount of the same in the tax period is greater than 50% of the entity’s net business turnover.
2.- Taxpayers who have applied the reduction set forth in Article 23 of the LIS and the Twentieth Transitional Provision of the LIS for having obtained income as a result of the transfer of certain intangible assets to related parties or entities (known as the “Patent Box”), and other taxpayers who have carried out transactions or hold securities in countries or territories classified as tax havens, regardless of the amount.
Form 232 must be presented in the month following the ten months after the conclusion of the tax period to which the information to be provided relates. Therefore, taxpayers whose tax period coincides with the calendar year have the obligation to present this form in the month of November.
In this month, ARRABE INTEGRA will proceed to present the corresponding Form 232 for those taxpayers who are required to file and whose tax management is handled by this office. For other taxpayers who require information in our tax area in order to comply with the presentation of this form, we remain at your disposal.
Arrabe Integra
Tax Department
