Although the OECD considers transaction-based methods as the most straightforward methods to determine whether or not business relationships between related entities comply with the arm’s length principle, we will use one or the other depending on the type of transaction to be examined.
The increasing globalization and the presence of more and more companies in different countries forces us to know if our company is complying with the regulations established in the Spanish Corporate Tax Law (LIS) regarding Transfer Pricing in Spain.
The Immediate Supply of Information (SII Spain) is an innovative online tool, promoted by the Spanish Tax Administration Agency (AEAT), to improve and facilitate the control of VAT (Value Added Tax).
There is special treatment (called “the Beckham Law in Spain “) on offer for top executives who have moved to Spain with a personal income up to a maximum of € 600,000, which may be applied in the first year of moving and the following 5 years.
Form 232 is an annual informative declaration of transactions carried out with related entities and/or related entities located in countries or territories classified as tax havens.
The use of the electronic signature has been gaining influence since its voluntary implementation until becoming the only way to communicate with Spanish Authorities. It is of crucial importance the electronic mailbox in Spain is checked daily in order to avoid potential fines for not answering such requirements.