German Federal Tax Court queries constitutionality of treaty override

The Federal Tax Court has questioned whether the tax treaty override, under which the credit method is substituted for the exemption method provided for under a tax treaty, is in line with the principles of the German constitution.
Source & more info: Deloitte

Resolución del TEAC (15/03/2012) sobre la existencia de EP en España en estructuras centralizadas

Resolución TEAC 15 de marzo de 2012

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Spanish permanent establishment case demonstrates importance of operational reality

The Spanish Central Tax Court (SCTC) published a decision in June of 2012 (originally issued on March 15, 2012) regarding a nonresident company that was deemed to have a PE in Spain.  The nonresident entity was part of a larger related group that included a Spanish subsidiary.  It appears from the facts in the published decision that the taxpayer intended to utilize a principal and commission agent structure and claim that the nonresident company should not be subject to taxation in Spain.  However, the Court's decision relied heavily on the facts and determined that the 'operational reality', i.e., the substance of the activities, was that the nonresident company had a PE in Spain.  This decision demonstrates the Spanish tax authority's keen focus on the underlying substance when analyzing PE issues.
Source & more info: PKN

Dutch Budget 2013

On June 21, 2012, the Dutch Lower Chamber of Parliament adopted the proposed additional interest limitation rules which intend to limit the deduction of interest on the financing of interests in subsidiaries qualifying for the participation exemption (“subsidiaries”). Compared to the initial proposal the adopted version has two important amendments that are in favour of taxpayers:
1. An exclusion of certain group financing activities;
2. A grandfathering rule for subsidiaries which are acquired, expanded or to which contribution were made in a tax year starting before or on January 1, 2006.
Source & more info: Ernst & Young

Aprobadas medidas contra el fraude fiscal

• Se limita a 2.500 euros el pago en efectivo en operaciones en donde participen empresarios o profesionales. Hacienda perdonará la sanción a la parte que denuncie los hechos.
• Todos los contribuyentes deberán informar sobre las cuentas, valores e inmuebles que tengan en el extranjero. Las rentas descubiertas que no hayan sido declaradas se imputarán al último periodo impositivo no prescrito.
• Se excluye del régimen de módulos a aquellos empresarios que facturen menos del 50 por 100 de sus operaciones a particulares y a los que obtengan más de 225.000 euros de otros empresarios o profesionales.
• Hacienda potencia el cobro del IVA en operaciones de entrega de inmuebles, importaciones y declaraciones en concurso.
• El Proyecto de Ley facilita los embargos preventivos y demás medidas cautelares para garantizar el cobro de deudas tributarias.

Embargo de bienes

El Consejo de Ministros ha aprobado la remisión a las Cortes Generales del Proyecto de Ley de modificación de la normativa tributaria y presupuestaria, y de adecuación de la normativa financiera para su adaptación a la intensificación de las actuaciones en la prevención y lucha contra el fraude. El citado Proyecto de Ley, del que fue informado el Consejo de Ministros el pasado 13 de abril, refuerza las actuaciones de prevención contra el fraude fiscal, una de las prioridades de la política económica del Gobierno

.

Tras su fase de información pública, el texto aprobado hoy, para cuya tramitación parlamentaria se ha solicitado el procedimiento de urgencia, incorpora algunas recomendaciones realizadas por expertos en lo referente, entre otros, al régimen de módulos y al control de rentas en el extranjero.

En la norma se combinan medidas novedosas diseñadas para impactar directamente en nichos tradicionales de fraude con otras que refuerzan la seguridad jurídica del sistema tributario y potencian la recaudación. El Proyecto de Ley es un complemento perfecto al plan extraordinario de regularización de rentas ocultas aprobado el 30 de marzo, por el que se pretende la afloración de ingresos procedentes de la economía sumergida y su incorporación a la economía regular antes del 30 de noviembre.

Una de las medidas más ambiciosas incorporadas en el Proyecto de Ley de intensificación de la lucha contra el fraude consiste en la limitación del uso de dinero en efectivo en determinadas operaciones. Se ha tenido en cuenta la experiencia legislativa en países comunitarios del entorno como Francia e Italia. Así, no podrán pagarse en efectivo operaciones iguales o superiores a 2.500 euros en las que intervenga, al menos, un empresario o profesional. La limitación no será aplicable a los pagos e ingresos realizados con entidades de crédito.

Quienes incumplan esta limitación se enfrentarán a multas del 25 por 100 del valor del pago hecho en efectivo. Tanto el pagador como el receptor del pago responderán de forma solidaria de dicha infracción, por lo que la Administración podrá dirigirse contra cualquiera de ellos. Si la denuncia procede de una de las partes que hayan intervenido en la operación, Hacienda no aplicará sanción alguna a esta parte si voluntariamente lo pone en conocimiento de la Agencia Tributaria.

Valores en el extranjero

Por otro lado, la norma fija la obligatoriedad para todos los contribuyentes de suministrar información sobre cuentas y valores situados en el extranjero de los que sean titulares, beneficiarios o figuren como autorizados. Se incluyen todo tipo de títulos, activos y cuentas en entidades financieras, así como valores o seguros de vida. También afecta a bienes inmuebles. Esto último es una novedad respecto al Anteproyecto de Ley que estudió el Gobierno en abril.

El incumplimiento de esta nueva obligación de información llevará aparejado un régimen sancionador propio a razón de cinco mil euros por cada dato o conjunto de datos omitidos, con un mínimo de diez mil euros. Además, las rentas descubiertas que no hayan sido declaradas se imputarán al último periodo impositivo de entre los no prescritos. Su ámbito de aplicación se amplía respecto al texto estudiado en abril. No sólo afectará a la titularidad, sino también a la tenencia y adquisición de bienes o derechos no incluidos en la declaración informativa.

Régimen de módulos

El texto recoge también modificaciones que afectan a los empresarios incluidos en el régimen de módulos. De esta forma, se fija la exclusión del régimen de estimación objetiva para aquellos que facturen menos del 50 por 100 de sus operaciones a particulares. Dicha exclusión sólo operará para empresarios cuyo volumen de rendimientos íntegros sea superior a 50.000 euros al año. Entre estas actividades se encuentran la albañilería, la fontanería, la carpintería y el transporte de mercancías por carretera.

También quedarán excluidos aquellos que obtengan rendimientos procedentes de otros empresarios o profesionales por importe superior a 225.000 euros. Se trata de otra novedad respecto al texto estudiado en abril.

En el caso de los servicios de transporte y mudanzas, la exclusión operará con ingresos superiores a 300.000 euros, tal y como sucede con las operaciones agrícolas o ganaderas.

Mayor capacidad recaudatoria

El Proyecto de Ley incluye también una serie de medidas encaminadas a reforzar la capacidad recaudatoria de la Agencia Tributaria, sobre todo en los casos en donde el contribuyente intenta escapar de sus obligaciones fiscales retrasando el pago de la cuota, interponiendo obstáculos o diluyendo su patrimonio.

Con ello, el texto elimina la posibilidad de aplazamientos o fraccionamientos de créditos en las situaciones de concurso para evitar la postergación artificiosa del crédito público. Asimismo se introduce un nuevo supuesto de responsabilidad subsidiaria contra los administradores de empresas carentes de patrimonio, pero con actividad económica regular, que realizan autoliquidaciones recurrentes sin ingresos por determinados conceptos, con un ánimo defraudatorio. Estos administradores serán responsables de las deudas derivadas de los tributos que deban repercutirse o de las cantidades que deban retenerse a trabajadores o profesionales.

Fraude en el IVA

En su ánimo de reforzar la capacidad recaudatoria, la norma tiene por vocación también reducir al mínimo el fraude en el IVA a través de varias medidas. En primer lugar, la exclusión en el régimen de módulos afectará, igualmente, a este impuesto, además del IRPF.

Por otro lado, se establece la inversión del sujeto pasivo en los supuestos de renuncia a la exención del IVA vinculada a ciertas operaciones inmobiliarias. Así, el sujeto adquiriente sólo podrá deducirse el IVA soportado si acredita que ha ingresado el IVA repercutido. Se evita con ello el doble perjuicio para la Hacienda por la falta de ingreso del impuesto por el transmitente del inmueble y por la deducción del IVA soportado.

En los supuestos de declaración de concurso, el derecho a la deducción de las cuotas soportadas por IVA con anterioridad a dicha declaración no podrá ejercitarse en liquidaciones posteriores. Las modificaciones del IVA se trasladarán también al Impuesto General Indirecto Canario (IGIC), para dar un trato homogéneo a ambas figuras. En consecuencia con ello, el Consejo de Ministros ha acordado remitir el texto del Proyecto de Ley al Parlamento de Canarias para su dictamen oportuno.

La norma modifica el régimen de embargo de bienes y derechos en entidades de crédito para que éste se pueda extender más allá de la oficina o sucursal a la que se remitió el embargo. Asimismo, se prohíbe la disposición de inmuebles de sociedades en donde han sido embargadas acciones equivalentes a más de la mitad del capital social.

Respecto a las medidas cautelares, se modifica el precepto para permitir su adopción en cualquier momento del procedimiento cuando así se estime oportuno. Se permitirá a la Agencia Tributaria adoptar medidas cautelares en los procesos penales. Por otro lado, para garantizar el cobro de deudas la norma modifica también al alza el importe de la garantía que es necesario depositar para que se suspenda la ejecución de un acto impugnado, a fin de que éste cubra todos los recargos que pudieran ser exigibles.

Fuente: www.lamoncloa.gob.es

Danish Bill amending corporate income tax law enacted

Legislation covers loss limitation, auditor’s reports in loss-making companies, etc., fines for inadequate transfer pricing documentation, liability in joint taxation arrangements, transparency in relation to companies’ tax payments, income from permanent establishments, etc.
Source & more info: Ernst & Young

Danish government initiatives to tighten the grip on multinational enterprises

The Danish Government has enacted the bill to tighten the grip on multinational enterprises (MNEs).

The new legislative changes will become effective from 1 July 2012, however the auditor’s report and the Danish Tax Authorities’ (DTAs) discretion to make public all companies’ taxable income and tax payments will become effective from 1 January 2013. The transfer pricing (TP) related initiatives have retrospective effect for any tax period that remains open for TP tax audits. This means that, from 1 January 2013, the DTA can request an auditor’s report on TP documentation covering the years 2007 – 2011 with 2007 being closed for tax re-assessment as of 2 May 2013.

Source: PKN

Transfer pricing highlights from the 2012 OECD international conference

The annual OECD International Tax Conference sponsored by The United States Council for International Business was held in Washington, D.C., on June 4 and 5, 2012. Representatives from the OECD, U.S. Treasury Department and Internal Revenue Service, other taxing authorities, the business community and professional advisors shared their views on the most recent developments in the international tax arena, with special emphasis on transfer pricing matters.
Source & more info: PKN

OECD issues report on international co-operation in fight against tax/financial crimes

Financial crimes, including corruption, tax fraud and money laundering, are a threat to all countries, both developing and developed. The sums are vast. Estimates have put total proceeds from all illicit activities at 3.6% of global GDP. Recognizing the importance of the issue, G20 leaders and Finance Ministers have consistently urged all jurisdictions to work together to control this threat, to adhere to the international tax, prudential and anti-money laundering standards and have mandated OECD to help improve inter-agency co-operation in the fight against illicit activities.
In response to this call, and building on the first global event on tax and crime held in Oslo last year, senior officials from almost 60 countries - tax administrations, finance and justice ministries, financial intelligence units and central banks - as well as the World Bank, the IMF, the FATF and the United Nations; non-governmental organisations, including Transparency International and Global Financial Integrity; and the private sector, have come together in Rome to discuss an ambitious agenda and map out a plan to fight financial crime more effectively using a whole of government approach.
Opening the event OECD Deputy Secretary-General Richard Boucher, said “The crisis has led to a loss of trust and confidence. In occupy wall street, the Arab Spring, and demonstrations in a number of countries people complain that the system protects privilege and lacks transparency. Coherent, co-ordinated and effective action to fight corruption, money laundering, tax crimes and other illicit flows and to promote integrity and transparency is now crucial to restore citizens confidence.”  Read Mr. Boucher's speech.
In support of the discussions in Rome, two reports have been released today. Effective -Agency Co-operation in Fighting Tax Crimes and Other Financial Crimes, is the first in-depth study of domestic inter-agency co-operation in over 30 countries. It identifies current challenges and recommends ways to improve inter-agency co-operation. The Catalogue of Instruments for International Co-operation Against Tax Crimes and other Financial Crimes provides, for the first time, a holistic view across instruments for international co-operation in tax, corruption, supervision, money-laundering, and other areas of mutual legal assistance.
Recognising that not all jurisdictions, particularly developing countries, have the investigative skills necessary for successful criminal tax investigations, participants will also discuss the launch of a pilot training programme with the aim of establishing an international academy on criminal tax investigations.

Source & more info: OECD

Spain and US initial new Protocol to existing tax treaty

The Spanish Secretary of State for Finance announced in a press release dated 4 June 2012, that a new Protocol to the US-Spain Tax Treaty was initialed on 25 May 2012, by the respective countries’ representatives. This new Protocol is the result of several years of negotiation, and still needs to be signed by the relevant authorized Governmental representatives.
Source and more info: Ernst & Young

OECD publishes revised draft of guidance on transfer pricing of intangibles

On 6 June2012, the Organization for Economic Cooperation and Development OECD published its proposals for revised guidance on the transfer pricing of intangibles.
Source & more info: Ernst & Young

US customs adopts new policy accepting transfer pricing adjustments

US Customs and Border Protection (CBP) has adopted a policy first proposed in September, which will accept transfer pricing adjustments, provided that specified conditions are met. The new policy broadens CBP’s interpretation of what constitutes a formula for purposes of using "transaction value."
Source & more info: Ernst & Young

Mapa de rescates a los bancos

Fuente: elpais.com

Subcapitalización y principio de libre competencia

Subcapitalización y principio de libre concurrencia

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Aficionados irlandeses en la Eurocopa: "Merkel cree que estamos trabajando" - EcoDiario.es

Los mitos de la austeridad española

Fuente: Libremercado

Draft legislation with a proposed amendment to the Belgian thin capitalisation rule for certain financing activities

The Program Act of 29 March 2012 introduced a general thin capitalisation ('thin cap') rule into Belgian tax legislation. The new 5:1 debt/equity ratio is applicable to (i) loans whereby the beneficial owner is not subject to income taxes, or, with regard to interest income, is subject to a tax regime which is substantially more advantageous than the Belgian tax regime; and (ii) intra-group loans.
Source & more info: PKN

EU Council comments on CCCTB project issued

The Council Presidency recently made public its comprise proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) as emerged from the deliberations in the Council Working Party on Tax Questions. The paper also includes interesting Presidency comments on the comprise proposal, e.g. on the introduction of a interest limitation rule (Art. 14a), on the arm´s length principle with PEs (Art. 79), and on tightening of anti-abuse rules (e.g. Art. 80 (general anti-abuse rule), Art. 82 (controlled foreign companies and permanent establishments in low tax countries), and Art. 83a (Hybrid mismatch)).
Source & more info: EU Council

Refund claim based on a self-initiated Section 482 adjustment dismissed by the US Claims Court

Intersport Fashions West Inc.’s (Intersport) suit seeking a refund for a self-initiated Section 482 adjustment has been dismissed by the US Court of Federal Claims. The court held that the plain language of Treas. Reg. Section 1.482-1(a)(3) bars refunds on an amended return that decreases taxable income and is filed after the due date of the original return.
Source & more info: Ernst & Young

Dutch Budget 2013 may introduce interest deduction limitations

On June 4, 2012, the Dutch Ministry of Finance released its tax budget proposals for the fiscal year 2013. The proposals contain important changes for Dutch corporate taxpayers financed with net debt that currently generates tax deductible interest. The impact on holding, financing, licensing or principal companies, that generally do not have  such net debt, should be limited. After review and discussion of the proposals by Dutch Parliament, the proposals are envisaged to come into effect as of January 1, 2013, as potentially amended during the legislative process.
Source & more info: Ernst & Young

India introduces a new transfer pricing method

The Indian Tax Administration has issued a notification introducing a new transfer pricing method (TPM) for determining the arm’s length price (ALP). The notification introduces a new Rule 10AB to the Income-tax Rules, 1962 (the Rules) describing the new TPM. As per Rule 10AB, any method that takes into account the price that has been charged or paid, or would have been charged or paid, for the same or similar uncontrolled transaction, with or between non-associated enterprises, under similar circumstances considering all the facts, shall be regarded as one of the recognized methods for determining the ALP.
Source & more info: Ernst & Young

OECD project on intangibles: OECD releases highly anticipated Discussion Draft of Chapter VI of the OECD Guidelines on "Intangibles"

Almost one and a half years ahead of the original timeline on 6 June 2012, the OECD published the first public Discussion Draft, Revision of Chapter VI ("the Intangibles chapter") of the OECD Transfer Pricing Guidelines and Related Provisions. The OECD has made immense progress since the kick off meeting held together with business commentators in November 2010.
Here are the highlights and comments from pwc.

OECD updates Multi-Country Analysis of Existing Transfer Pricing Simplification Measures

The OECD Committee on Fiscal Affairs launched in 2010 a project to improve the administrative aspects of transfer pricing including a review of techniques that may be implemented by countries to optimise the use of taxpayers’ and tax administrations’ resources. A survey was conducted as part of this project. The main findings from the survey were released in June 2011 based on the responses provided by 33 OECD and non-OECD countries.The OECD subsequently invited more countries to participate in this survey. Eight countries responded to this invitation and a total of 41 OECD and non-OECD countries provided detailed responses concerning measures currently existing in their domestic law to simplify the application of their transfer pricing rules. This document presents updated analysis of existing transfer pricing simplification measures as of 1 January 2012.
The survey described in this document focused specifically on simplification measures countries have adopted as part of their transfer pricing regimes. These include not only safe harbours but also measures such as less stringent documentation requirements, alleviated penalties, streamlined procedures, etc. This document contains both an analysis of the key findings from the survey and a compilation of the country responses. Some of the key findings are:

• More than 80% of the respondent countries have transfer pricing simplification measures in place,
• Almost 75% of available simplification measures are directed to SMEs, small transactions and low value added intra-group services,
• Out of 33 respondent countries which have simplification measures, 16 countries have safe harbours, i.e. simplified transfer pricing method, safe harbour arm’s length range/rate, safe harbour interest rate, and exemption from transfer pricing rules/adjustment,
• Of those 16 countries, 10 countries have simplified transfer pricing methods, safe harbour arm’s length range/rate and safe harbour interest rates.

Source: OECD

OECD invites comments on certain transfer pricing timing issues

The OECD Secretariat invites public comments on certain timing issues related to transfer pricing, in connection with the work of Working Party No. 6 on intangibles and other projects. Modifications to the Transfer Pricing Guidelines on these issues have been discussed by Working Party No. 6 delegates. Those modifications are not agreed by all countries. However, they raise certain difficult issues on which comment by the business community is specifically requested by the Secretariat.
The paragraphs under consideration highlight the fact that OECD member countries follow two different approaches in applying the arm’s length principle. The existence of these different approaches to applying the arm’s length principle raises a number of difficult issues. It would be helpful to the Secretariat to have comments on the practical problems caused by the existence of these two different approaches.

Source: OECD

OECD Working Party No. 6 releases a discussion draft on the revision of the Safe Harbours section of the Transfer Pricing Guidelines

Working Party No. 6 of the OECD Committee on Fiscal Affairs has released a discussion draft on safe harbours as part of its project to improve the administrative aspects of transfer pricing. This project started with a survey of the transfer pricing simplification measures in existence in OECD and non-OECD countries and led WP6 to review the current guidance on safe harbours in Chapter IV of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (“TPG”).
The current guidance in the TPG has a somewhat negative tone regarding transfer pricing safe harbours. This negative tone does not accurately reflect the practice of OECD member countries, a number of which have adopted transfer pricing safe harbour provisions. Also, the current guidance is largely silent with regard to the possibility of a bilateral agreement establishing a safe harbour, even though some countries have favourable experience with such bilateral agreements.
This discussion draft includes proposed revisions of the section on safe harbours in Chapter IV of the TPG and associated sample memoranda of understanding for competent authorities to establish bilateral safe harbours.

Source: OECD

OECD Working Party No. 6 releases a discussion draft on the Transfer Pricing Aspects of Intangibles

In 2010, the OECD announced the commencement of a project on the transfer pricing aspects of intangibles. A scoping paper was published on the OECD website for public comment. In the interim three public consultations have been held with interested commentators. At the business consultation held in November 2011, representatives of the business community suggested that it would be helpful if the OECD were to release interim drafts of its work as it progresses for further detailed public comment.
This document, prepared by OECD Working Party No. 6, is such an interim draft. It contains: (i) a proposed revision of the provisions of Chapter VI of the OECD Transfer Pricing Guidelines; and (ii) a proposed revision of the Annex to Chapter VI containing examples illustrating the application of the provisions of the revised text of Chapter VI.
Because this is an interim draft it should be recognised that it is not necessarily a consensus document and that the Committee on Fiscal Affairs has not yet considered the draft. One or another country may not be in full agreement with one or more of its provisions. Nevertheless, OECD Working Party No. 6 believes that it will be extremely helpful to its ongoing work on the intangibles project to have detailed business input with regard to the various provisions of this draft.
It should also be recognised that the Discussion Draft does not represent a complete draft of all of the provisions ultimately expected to form a part of the output for this project. In particular, the Working Party still intends to address at least the following topics not currently addressed in this draft: (i) any necessary modifications to Chapter VIII of the OECD Transfer Pricing Guidelines related to cost contribution arrangements that may be necessitated as a result of the modification of Chapter VI; (ii) the transfer pricing consequences of various items treated in this draft as comparability factors rather than intangibles, including market specific advantages, location-based advantages, corporate synergies and workforce issues; and (iii) any additional conforming changes to Chapters I – III and Chapter VII of the OECD Transfer Pricing Guidelines required as a result of the changes to Chapter VI. Discussion drafts of additional proposed changes will be released for comment at a future date.
Written comments on this Discussion Draft are requested to be provided by 14 September 2012. Comments in Word format should be addressed to Joseph L. Andrus, Head of the Transfer Pricing Unit, Centre for Tax Policy and Administration (joe.andrus@oecd.org). Unless otherwise requested at the time of submission, comments received will be posted on the OECD website.
It is anticipated that a public consultation on this Discussion Draft will be held in Paris during the week of 5 November 2012. Participants at the November 2012 public consultation will be drawn primarily from those providing timely written comments on this Discussion Draft.

Source: OECD

Analysis of bill containing proposed retrospective transfer pricing law changes‏

As indicated previously, the proposed "treaty-equivalent" transfer pricing rules announced by the Australian Government in November 2011 and released in draft in March 2012 are now before Parliament. The Bill and Explanatory Memorandum (EM) that were introduced into Parliament have both been significantly reworded from the drafts released in March. The result is much better drafting which has clarified some areas of uncertainty. There are other areas that remain uncertain or contentious, but given that the Bill has now entered Parliament it is unlikely that further substantial changes will be made before enactment, which could be by the end of June 2012.

PwC provides a brief executive summary and a more detailed analysis of key features of the proposed changes in this document.

Will Germany revive its net wealth tax?

A German task force might soon recommend that Germany reintroduce a new wealth tax. This could impact both German and non-German residents. The German net wealth tax was last levied for 1996, and was discontinued after the Federal Constitutional Court held that it breached German constitutional law.  That decision was based mainly on the differences in taxation between real estate and other assets. Taxpayers may wish to consider the following aspects of a potential net wealth tax.

• Tax rate – A 1% effective tax rate would apply to the net assets held by individuals and/or corporations.  This measure is expected to generate approximately Euro 11.5 billion in additional annual tax revenues. 
• Tax base - Taxpayers would calculate the tax base by referring to the assets' fair market values.  The valuation rules in the German Inheritance Tax Act and Valuation Tax Act would likely be used to determine values. Notably, this would require annual valuations of businesses, groups, investments and other assets, thereby creating extra burdens for both taxpayers and the tax administration. 
• Exempt amounts/thresholds - Individuals may receive a Euro 2 million exemption (plus an additional Euro 2 million for spouses).  However the de minimis threshold for corporations may remain at Euro 200,000.  In other words, if the threshold is exceeded, it would provide no benefit to corporations. Individuals holding corporate shares would bear 50% of the net wealth tax; the corporation would bear the other 50%.  

Source & more info: pwc

Spain and United States finalise new agreement to avoid double taxation

The announcement was made on Monday morning at the opening ceremony for a seminar on investment taxation between the two countries organised by the Spanish Confederation of Business Organisations (Spanish acronym: CEOE) at its headquarters in collaboration with the economic affairs team.

Miguel Ferre revealed that, following two years of intense negotiations, the new protocol between the Kingdom of Spain and the United States of America was finalised on 25 May. This new agreement will amend the existing agreement, which dates back to February 1990, in order to avoid double taxation and prevent income tax evasion.

"The importance of this document for both countries goes without saying as we are all aware of the strong economic and investment ties that exist between the two countries", said Miguel Ferre at the opening ceremony of the seminar.

The new protocol will update certain sections of the agreement to adapt it to both the needs arising from current economic and trade relations between Spain and the United States and to the various changes that have been made to the OECD Model Convention on the avoidance of double taxation.

In his speech, Miguel Ferre said that the protocol, which amends up to fourteen sections, will encourage Spanish investment in the United States and US investment in Spain. "I am convinced that the signing of this new agreement will provide definitive backing for American investment in Spain and that our companies will make a firm commitment to growing their business in the United States", he said.

More agreements

With this agreement, Spain has taken another step in its commitment to renegotiate all those agreements that, with the passing of time and the close economic relations Spain has with certain countries, need to be adapted to new circumstances. The aim is not to discriminate against investments made abroad in favour of investments that can be made within a certain country.

Miguel Ferre said that this "fiscal neutrality" target is fundamental for avoiding tax imbalances that impede growth and the internationalisation of companies.

Moreover, Miguel Ferre highlighted that these agreement will foster the creation of a "framework of legal certainty" that foreign investors can use after "clearly defining the rules of the game". This is absolutely essential when discussing investments in excess of a million euros.

FATCA

The State Secretary also highlighted the FATCA Project in which Spain is involved alongside other important players such as the United States, Germany, France, the United Kingdom and Italy.

This project will come into force within a few months and will provide information on the ownership of the banking assets of the financial entities in these countries that it has been possible to keep hidden until now. This will significantly help the tax authorities liquidate these assets.

"Spain is permanently talking with the United States about examining how to integrate the spirit of the FATCA Project into our domestic legislation while fully respecting the framework of EU legislation", added Miguel Ferre. In his opinion, this project "demonstrates the interest of the US in terms of exchanging tax information and thus provides an important stimulus to the development of such transparency at an international level".

As well as the FATCA Project, Miguel Ferre also emphasised how the EU is trying to enhance the application of the savings directive through an amendment proposal that will enable more information to be exchanged between the Member States of the European Union. All these initiatives are aimed at achieving the common goal of generating greater transparency to reduce tax evasion and foster increased international trade and investment.

Coberturas financieras con instrumentos derivados

Coberturas financieras con derivados

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