Country by Country Declaration in SpainForm 231 (Country by Country Declaration in Spain) includes the international transactions carried out between companies of the same group, provided certain requirements are satisfied. The term within which to file said form concludes twelve months after the end of the fiscal year of the group’s companies.

The obligation to provide information in the Country by Country Declaration in Spain is required for the tax periods that have commenced as of 1 January 2016, provided that the amount of the consolidated turnover of the companies that form part of the group exceeds € 750 million at the close of the previous financial period.

Additionally, Country by Country Information must also be submitted with regard to undertakings residing within Spanish territory, only if they comply with the condition of being the dominant company of the group, and that they are not dependent on any other undertaking, both resident as well as non-resident or that they are specifically assigned as such by the group. In all these cases the tax debtor shall be the undertaking that the group assigns in the pre-declaration of form 231 before the end of the year in progress.

Content of the Country by Country Declaration in Spain

The Country by Country Declaration of Information in Spain, depending on each country or jurisdiction, shall include the following information:

  • The Group’s gross income, differentiating between those obtained from third parties or related undertakings.
  • Profits/(Loss) before Corporate Tax.
  • The Corporate Tax including the taxes withheld.
  • Undistributed capital and profits on the date of the end of the tax period.
  • Average number of employees.
  • Tangible assets and investment property.
  • A list of the resident undertakings, which includes their main activities and the permanent establishments of each one.
  • Any other information that is deemed relevant and/or requires a more detailed explanation.

Filing of the Country by Country Declaration in Spain

The filing of form 231 shall be submitted solely by telematic means via the Internet, while the term within which to file said form shall end twelve months as of the end of the tax period. It is important to mention that this Country by Country Declaration in Spain is solely an instrument used to assess the risks in the transfer price policy of a business group. The Tax Authorities cannot use this information as the basis to carry out price adjustments.

Bettina Náray

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