Arm’s Length Principle in Transfer Pricing
In transactions between unrelated companies, market forces often determine the terms of commercial and financial relationships, whereas between related companies such forces may not directly affect prices.
Form 123 at Tax Authorities
This is a quarterly form that must be filed electronically or in person by the self-employed, SMEs and Communities of Assets, obliged to withhold or pay on account of Personal Income Tax, Corporation Tax and IRNR, which pay income from movable capital.
Corporate income tax for newly created entities
Newly created entities will have a reduced tax rate of 15% in the first tax period in which their taxable income is positive, and in the following period, provided that the entity is newly created and carries out economic activities.
How VAT is applied in intra-community transactions
When issuing an invoice for an intra-community customer or receiving one from a supplier in another EU country, one type of VAT or another will be applied and will have to be included or not on the invoices.
Form 714: Wealth Tax
Form 714 is the Wealth Tax declaration and those natural persons resident in Spain and non-residents are obliged to present it, depending on whether or not they exceed certain limits in the value of their assets or rights.