TRANSFER PRICES IN SPAIN, REGULATIONS AND FORMAL OBLIGATIONS DEMANDED BY THE (AEAT)
The Regulation of the Tax on Companies (Royal Decree 634/2015, on 10 July 2015) establishes detailed rules in matters of documentation, penal procedures, setting procedure of the transfer prices of the fiscal audit, secondary adjustments and a specific procedure of the APA. It also regulates the Mutual Agreement Procedure and the European Union Arbitration Convention (EU/90/436) from a Spanish Internal Perspective. The most relevant change of the Royal Decree 634/2015 with regards to its previous publications is that a new Article 14 has been included to regulate the obligation of information country to country.
• Operations lower than 250.000 euros
According to the Article 13.3.d) of the Regulation of the Tax on Companies (RIS), those operations performed with the same connected person or entity, as long as the amount of the total operations is not higher than 250.000 Euros, are not obliged to present documentation.
• Net amount of the business lower than 45 million euros
The entities with invoicing lower than 45 Million Euros (taking into account all the invoicing of the commercial group), are excluded from the obligation of the documentation related to the group but they will have to present the taxpayer’s simplified documentation.
• Net amount of the business higher than 45 million and lower than 750 million euros
In the terms exposed in the Articles15 and 16 of the RIS. These groups will be obliged to have at the Administration disposition the documentation related to the group the compulsory taxpayer belongs to as well as the compulsory taxpayer’s documentation.
• Operations higher than750 million euros
The groups whose net amount of the business is, at least, 750 million in the 12 months before the tax period, will be obliged, apart from the documentation related to the group and the compulsory taxpayer, to provide information country to country in relation with the connected operations performed. The entity must be a Spanish resident and dominant of the commercial group.
DATE OF PRESENTATION:
• The Model 200 is presented the sixth month after the close of the tax period within 25 calendar days from that moment.
• The Master File and Local File will have to be at disposal of the fiscal authorities on 27 July 2017 for the fiscal year that ends on 31 December 2016.
• The country to country inform must be presented no later than 12 months after the end of the fiscal year it refers to.
(*) The fiscal authorities can ask for documentation at any time after the taxpayer has presented the annual tax on business statement.
INFRACTIONS AND PENALTIES:
A fine of 1,000 Euros for each omitted, inaccurate or false data in the documentation, or 10,000 Euros for a group of omitted, inaccurate or false data. There is a higher limit that consists of the minimal value between 10% of the related transactions subject to the income tax on the business, income tax on the natural person or income tax on the non- resident during the fiscal year and 1% of the company’s income volume.
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