Tax Newsletter - July 2019

Spain - 07 / 30 / 2019

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A complete tax adjustment needs to cover statute-barred years also

Madrid High Court argues that a complete tax adjustment requires the tax authorities to include statute-barred years also, to avoid double taxation.

Corporate income tax.- Meaning of “final loss” defined for offsetting losses generated by the subsidiaries of other member states
Corporate income tax.- A waiver of preemptive subscription rights for no consideration entails the obtaining of income
Personal income tax.- A taxpayer may prove full use of the vehicle in their economic activities
Taxes on advertising and other sectoral taxes.- The establishment of a progressive system does not amount to prohibited state aid
Administrative procedure.- Liability for taking part in the concealment of assets to prevent the payment of tax debts only exists where the unlawful acts took place after the debts arose
Collection procedure.- Applications for a stay and deferred payment of tax debts are compatible

Administrative procedure.- TEAC continues adding flexibility to the definition of “tax option”
Audit procedure.- The taxpayer’s own appraisal is not an option when the comparable uncontrolled price method is used
Review procedure.- AEAT cannot introduce new arguments in appeals brought against regional economic-administrative tribunals’ decisions
Enforcement procedure.- If a stay is not requested, late-payment interest accrues in respect of the length of time taken over and above a year to settle the claims

Corporate income tax.- An exemption is not claimable for transfers of holding companies even if operating companies take part
Corporate income tax.- Professional services provided free of charge by a shareholder to a company in non-statute barred years are shareholder contributions
Corporate income tax.- Clarification of various issues regarding the tax credit for hiring disabled workers
Corporate income tax.- Nondeductible VAT is a deductible expense for corporate income tax purposes
Personal income tax.- Subsistence expenses are deductible from income from economic activities
Personal income tax.- The tax credit for international double taxation cannot be claimed until the return has been filed in the other country
Nonresident income tax.- The sale of bitcoins is taxed in Spain if the company providing the storage service is located in Spain
Transfer and stamp tax.- Clarification as to who the taxable person is for the purposes of stamp tax on mortgage loans after the recent amendments

Amendment of a number of rules on keeping personal income tax records
Publication of the annual equivalent rate for the third calendar quarter of 2019, for the purpose of characterizing certain financial assets for tax purposes

The Ministry of Finance has published various exchanges of letters and agreements in relation to a few tax treaties signed by Spain
AEAT publishes the draft legislative instruments to transpose the tax intermediaries directive (DAC 6)