The regulation and control of transactions between related persons and entities have been the subject of special monitoring and analysis by Spanish legislators and European control bodies in recent years. For this reason, within the scope of the OECD (Organization for Economic Cooperation and Development) a series of measures framed within the BEPS (Base Erosion and Profit Shifting) Action Plan Moscow, 2013 were consolidated.

As a result of the above, the new informative model 232 is created in Spain by Order HFP/816/2017, dated August 28th, 2017, published in the BOE on August 30th. Said model deals with the annual declaration that obliges companies to inform the Tax Agency (AEAT) about the operations carried out with related entities and/or related entities or persons located in countries or territories qualified as tax havens.

Previously, this type of operations had to be declared in a specific section within the annual corporate income tax return. As from the 2016 tax year, said section is suppressed giving rise to this new additional declaration.

Transactions to be declared

Those who meet the following conditions are obliged to present form 232:

  • Transactions which, as a whole of the same type, exceed 100,000€
  • Transactions with the same person or entities that exceed 250,000€ (market value)
  • Transactions of the same type that exceed in the respective tax year 50% of the sales.

Filing period

The Form 232 return is filed in the month following the ten months after the end of the tax year. That is to say, if the fiscal year ends on 31.12.2020, it must be filed between November 1st and 30th of 2021.

Among the data to be included in Form 232 are:

  • information regarding related persons or entities (physical, legal or other),
  • type of relationship (according to Art. 18.2 LIS),
  • type of transaction (income or payment),
  • the valuation method (according to Art. 18.4 LIS)
  • and the amount.

In the case of transactions with companies in tax havens, in addition to the above information, the country or territory qualified as a tax haven must also be identified.

Peter Spiller

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