Tax Newsletter - May 2024
The Supreme Court has confirmed that, where there are no excess distributions, the termination of a number of joint-property entities among the same co-owners (with allocation of separately owned assets to each) is not subject to transfer tax under the transfers for a consideration heading, but rather to stamp tax. The same conclusion was reached by Andalucía High Court in a case where on termination of a condominium one co-owner received absolute ownership of a few properties and a usufruct right in other assets, on the basis, once again, of the absence of any excess distribution.
The statute of limitations for the right to assess is reckoned from date to date, even if the last date is a non-business day
According to the Court, if the period between when submissions are filed with TEAC and notice of its decision is served is longer than four years, the authorities’ right to assess will have become statute-barred, even if the last day in that period is a non-business day.
Activities carried out by directors or members of a board of directors who are individuals are not subject to VAT
Adopting the CJEU’s case law, the DGT concluded that the activity as a member of the board of directors performed by an individual is not subject to VAT. The remaining functions of the director (e.g. creative director) will only be subject to VAT if the professional is not subject to the company’s organizational rules, receives remuneration linked to the results, and bears the risk of the business.
The requirement to have an employee with full-time hours can be met by the person with management functions for the purpose of applying the family business reduction
TEAC has accepted that to apply the family business regime in relation to shares in a property leasing company the person performing management functions may also be taken to determine fulfillment of the requirement to have an employee under a full-time employment contract.
The 2023 corporate income tax and nonresident income tax (permanent establishment) return forms have been published
The new return forms are very similar to previous years’, although they have been amended or new detail tables or forms have been added in relation to the special regime for economic interest groupings (AIEs) and temporary unincorporated joint ventures (UTEs), the reserve for investments in the Balearic Islands, or the net sales/revenues figure for the twelve months preceding the start date of the taxable period, among others. The filing period ends on July 25, 2024 where the taxpayer’s fiscal year is the same as the calendar year (July 22 if payment by direct debit is elected).
For further details on this month’s judgments, decisions, resolutions and legislation, SEE THE WHOLE NEWSLETTER HERE.
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