The documentation relating to transfer prices in Spain, as required by the Spanish Tax Agency, will be directly related to net turnover (INCN); the documentation must be produced before the voluntary deadline for submitting corporation tax returns expires.
Documentation – transfer prices in Spain
The documentation relating to transfer prices in Spain, to which the tax payer is subject, is as follows:
- Master File: This file contains information about the transactions carried out between group members.
- Local File: This file contains the particular documentation produced by the local taxpayer.
- Country-by-Country report: This form only needs to be submitted in the event that the net turnover at group level exceeds € 750 million.
As we have previously indicated, the Net Turnover is the indicator that must be taken into consideration in preparing the transfer price documentation in Spain, as detailed below.
- Less than 45 million: Any company whose INCN is less than € 45 million only have to submit a disclosure statement to the Revenue Office, which includes the following information: name and/or company name of the companies with which the transaction is carried out, nature and amount of related party transactions, valuation method chosen and comparability analysis.
- More than 45 million: If the INCN of any company exceeds € 45 million, the particular documentation of related party transactions must be produced in accordance with general rules. This documentation is split into two parts: the Master file which includes information about the group, such as its structure, principal activity, financial and tax-related activity. Secondly, the local file contains information exclusively about the local taxpayer.
Summary – documentation relating to transfer prices in Spain
In short, the documentation relating to transfer prices in Spain, as required by the Spanish Revenue Office, is directly related to net turnover (INCN).