Do you know the new form 232 to inform the Spanish Tax Authorities about the related-party transactions and transactions related to tax havens?
This disclosure statement was approved on 28th August, through the HFP/816/2017 ministerial order, to inform about the following situations:
(a) related-party transactions;
(b) related-party transactions, in case of application of the reduction of income from certain intangible assets (known as Patent Box); and
(c) transactions and situations related to tax havens.
For periods prior to 2016, the information about related-party transactions was included in the form 200 corresponding to the Corporate Income Tax. However, from the fiscal year 2016, the situations mentioned in the above bullet points must be declared in the form 232. This change has a dual purpose: on the one hand, to include purely informative facts in an informative disclosure statement and, on the other hand, to reduce the effort of the taxpayer on the preparation of the corporate tax return, removing these informative boxes of the form 200, which sometimes can include a complex content.
Thus, the information to be included in the form 232 will be shown in three different boxes and the required information must be incorporated, considering the following limits:
(a) related-party transactions box. In this case remains the obligation to declare all transactions (except those that will be included in other boxes of the form 232) carried out with the same person or related entity, if the whole of the transactions exceeds the € 250,000 during the tax period.
There is also another limit related to specific transactions (those detailed in article 18.3 of the law 27/2014, of 27 November, the corporate tax). In this sense, it must be declared all the specific transactions that, being of the same type, exceed € 100,000 altogether, regardless of the method of valuation used.
However, for the fiscal year started in 2016 there is a specific rule which indicates that, although the mentioned thresholds (€ 250,000 or € 100,000, depending on the case) are not exceeded, the taxpayer must declare the related-party transactions (of the same type and by the same method of valuation) if together exceed the 50% of the net amount of the turnover of the entity.
(b) related-party transactions in case of application of the reduction of income from certain intangible assets box. This table should include the relevant information about all transactions related to that they have been originated the reduction of incomes by the transfer of certain intangible assets, independent of the amount of them.
(c) transaction and situations related to tax havens. This box should include the relevant information about all transactions related to countries or territories considered as tax havens, regardless of the amount of them.
Finally, the ministerial order provides that the submission of the form 232 will be four months after the submission of the Corporate Tax Return. However, for the fiscal year 2016, exclusively, the submission of this Form will be from the 1st to November 30th, regardless of the time in which the CIT return was submitted.