domingo, 29 de marzo de 2015

Spain's MoF publishes draft Corporate Income Tax Regulations

On 18 March 2015, Spain's Ministry of Finance (MoF) has published the draft of the new Corporate Income Tax Regulations (CITR) and will receive public comments until 8 April.

The main developments in the Transfer Pricing (TP) area are as follows:


  • Country-by-country reporting:
  • Spanish-resident ultimate parent companies, when the Group's net revenues are equal or higher than 750 million euros, must file the country-by-country report; 
  • The content of the country-by-country reporting is similar to the Annex III of the new Chapter V of the OECD TP Guidelines;
  • Spain's MoF will approve an specific tax filing for this country-by-country reporting;
  • The filing period is within the 12 months following the end of each tax period.
  • Group's Masterfile:
  • Taxpayers belonging to a Group whose net revenues are equal or higher than 45 million euros are obliged to keep a Group's Masterfile at the disposal of the Spanish tax authorities;
  • The contents of the Group's Masterfile is similar to the Annex I of the new Chapter V of the OECD TP Guidelines, what supposes a significant increase in the details and amount of information to be disclosed at group level;
  • The Masterfile should be at the disposal of the tax authorities since the deadline for filing the annual corporate income tax return.

  • Taxpayer's file:
  • Spanish-resident companies and PE's in Spain belonging to a Group whose net revenues are equal or higher than 45 million euros are also obliged to keep a Taxpayer's file at the disposal of the Spanish tax authorities;
  • The contents of the Taxpayer's file is similar to the Annex II of the new Chapter V of the OECD TP Guidelines, which is basically a transfer pricing study of the related-party transactions;
  • The Taxpayer's file should be at the disposal of the tax authorities since the deadline for filing the annual corporate income tax return. 
  • Documentation exclusions: the following related-party transactions are excluded of the documentation requirements
  • Controlled transactions carried out within a tax group;
  • Controlled transactions carried out by Economic Interest Groupings or Temporary Business Associations and their members (or other companies of the same tax group);
  • Controlled transactions carried out in the framework of the Securities' Public Offering;
  • Those controlled transactions carried out with the same counterparty when they are overall worth up to 250,000 euros.
  • SME's simplified documentation requirements:
  • Companies belonging Groups with revenues up to 45 million euros:
  • Description and amount of the controlled transactions;
  • Identification details of taxpayer and the related-parties;
  • Transfer pricing method selected;
  • Comparables employed and the arm's length value/range derived from.

  • Companies belonging Groups with revenues up to 10 million euros should just file a reporting form including:
  • Description and amount of the controlled transactions;
  • Identification details of taxpayer and the related-parties;
  • Transfer pricing method selected;
  • Arm's length value/range derived from.
These new TP documentation requirements would be applicable as from 1 January 2016.

The draft regulations also include the formal requirements for the cost-sharing agreements, the procedure for the relief of the secondary adjustment and the procedural regulations applying to unilateral/bilateral/multilateral APA's.

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