Tax Newsletter - April 2020
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An expense (or lower amount of income) arising from a rent reduction is deductible for corporate income tax purposes
Stalled economic activity as a result of the health crisis is prompting renegotiations of commercial lease agreements due to force majeure, and reductions or deferrals are similarly being negotiated for many other contracts or activities.
Judgments
- Corporate income tax.- The only requirement to claim the regime for companies of a reduced size was the net revenues threshold (under the former Corporate Income Tax Law)
- Personal income tax.- Directors can claim exemption for work performed abroad
- Personal income tax.- Rejection of exemption for a severance payment must be based on solid and consistent evidence, even if it is indicative
- Personal income tax.- Capital gains derived from awarded proceeding costs have to be reduced by defense costs
- Nonresident income tax.- The income specified in the parent-subsidiary directive does not apply for companies formed in Gibraltar
- Transfer and stamp tax.- A property value included in a mortgage appraisal report cannot be used to identify its actual value
- Transfer and stamp tax.- For the audit of a property value to be valid, the tax authorities have to evidence that they made at least one attempt to visit the property
- Review proceeding - 'res judicata principle'.- A national court is not required to apply internal procedural rules that confer finality under the res judicata principle on a court judgment contrary to European law
Decisions
- Corporate income tax.- The chosen depreciation method for specific assets has to be used until those assets have been depreciated in full, transferred or forfeited
- Personal income tax.- Before December 31, 2015 “minimum amortization” did not exist for the purpose of reducing the acquisition value of intangibles with indefinite useful lives used in an economic activity
- VAT.- Input VAT paid by holding companies is deductible if it relates to activities with billed fees
- Collection procedure.- Failure to notify an attachment order to the co-owners of the attached assets does not render the order null and void
- Audit procedure.- Absence of reasoning and valuation in a report cannot be remedied in the assessment decision
- Enforcement procedure.- Late-payment interest following the suspension of penalties in the judicial review jurisdiction is calculated from the day after the end of the voluntary payment period commenced on notification of the decision
- Requests for preliminary rulings.- Economic-administrative tribunals cannot submit requests for preliminary rulings, but they have an obligation to ensure that EU law is applied
Resolution requests
- Corporate income tax.- Know-how cannot benefit from the patent box
- Nonresident income tax.- Mediation services are business profits
- Personal income tax.- The reported value audited by the tax authorities is the acquisition value for the purposes of a future transfer
- Personal income tax.- Forgiveness of a loan provided by a company to its shareholder is to be treated as a dividend
- VAT.- Treatment of penalties for breach of service level terms
- Transfer and stamp tax.- The delivery of properties to shareholders in a capital reduction is subject to capital tax only
- Tax on economic activities.- Promoting properties to be leased is only taxable in respect of their rental
Legislation
- Approval of lower indexes for the objective assessment method for 2019 personal income tax
- 5.2 Publication of the annual equivalent rate for second calendar quarter of 2020, for the purpose of characterizing certain financial assets for tax purposes
COVID-19 legislation
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Central government and autonomous community legislation
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Local regulations
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Other legislation of interest
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