As from the 2016 financial year, Spanish companies have to report related transactions in Spain.
The regulation and control of transactions between related persons and entities has long been the focus of special monitoring and analysis by Spanish lawmakers and European control bodies. A series of measures, consolidated in the area of the OECD (Organization for Economic Cooperation and Development), were set out in the BEPS Action Plan (Base Erosion and Profit Shifting). Moscow, 2013.
In Spain, under the order HFP/816/2017 of 28 August 2017, published in the Official State Gazette on 30 August, the new informative Form 232 was approved, through which transactions undertaken between related-parties (persons and entities) and/or transactions relating to countries or territories classified as tax havens, are to be obligatorily reported each year to the Spanish Tax Agency (AEAT), having retroactive application to the 2016 tax period.
Those who undertake the following in the tax period must submit the Form 232 (related transactions in Spain):
- Transactions of the same kind that in total exceed €100,000.
- Transactions with the same person or entity that exceed €250,000 (market value).
- Transactions of the same kind that exceed 50% of sales in the corresponding tax year.
- The Form 232 submission period is the month after the 10 months following the end of the tax year. If the tax year ends on 31/12/2017, the form must be submitted between 1 and 30 November 2018.
The information that must be provided in Form 232 (related transactions in Spain) includes: the identification of partners and directors, information on related persons and entities, the type of relationship, the type of transaction and payment, and the valuation method.