After the Covid-19 crisis the work and world business will have to reinvent itself to a large extent. From this need for adaptation new market opportunities are born.
Form 231 (Country by Country Declaration in Spain) includes the international transactions carried out between companies of the same group, provided certain requirements are satisfied. The term within which to file said form concludes twelve months after the end of the fiscal year of the group’s companies.
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.
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.