Royal Decree 634/2015, of 10 July, approving the Corporate Income Tax Regulation and Act 27/2014, both set out the particular documentation on related party transactions (transfer prices in Spain), which must be provided by tax payer who are obliged to record transactions between related parties.
There are currently various methods to determine transfer pricing in Spain. Depending on the type of operation to be examined, we will use one or the other, although the OECD clearly recommends the use of methods based on transaction analysis.
Given the growing globalisation of the business society and the operations between related companies, it is vital to know whether your company is complying with the regulations established by the OECD regarding transfer pricing in Spain.
As from the 2016 financial year, Spanish companies have to report related transactions in Spain in the informative Form “Modelo 232“.