B Law & Tax
02 June 2023

Tax advisor: Modification of the LGT, the LIVA, the LIS and other tax regulations

On 25 May 2023, Law 13/2023 has been published in the BOE , of May 24, which amends the General Tax Law (LGT) to transpose Council Directive (EU) 2021/514 in relation to administrative cooperation in the field of taxation, together with other tax regulations. Specifically, this regulation introduces changes to the Value Added Tax Law (LIVA), the Non-Resident Income Tax Law (LIRNR) and the Corporate Income Tax Law (LIS).

Modification of the LGT

The regulation transposes Council Directive (EU) 2021/514, issued on March 22, 2021, and amends the General Tax Law (LGT). It establishes provisions on joint inspections, the presence of officials from other Member States in Spain and vice versa, and simultaneous controls.

In addition, the reporting obligations in relation to certain tax planning mechanisms are modified to comply with European jurisprudence, and a single self-assessment correction system is implemented. The figure of the rectifying self-assessment is introduced instead of the current dual system. In order to improve the efficiency of the limited verification procedure, the tax administration is granted the power to verify the commercial accounting. The powers to initiate and resolve the liability declaration procedure are also unified in the collection bodies.

As regards the regime for the presence of officials, the possibility of participating in proceedings by electronic means is recognized, which also applies to simultaneous controls. The regulatory framework for joint inspections is established, including the preparation of a final report that will be communicated to the obligor and will include the conclusions of the inspection, to be taken into account in future tax proceedings.

Additionally, a new obligation to provide information is introduced for the “platform operators obliged to communicate information” to the Spanish Tax Administration, together with the related sanctioning regime.

Modification of the LIVA

It is established that when the warehouse regime other than customs warehousing of excisable goods is abandoned, it will be considered an operation similar to an import, regardless of its origin. This implies a technical adjustment in the taxable base of imports and similar operations, with retroactive effect to the same date.

In relation to the rules on the place where services are performed, the application of the “effective use” rule is excluded for financial and insurance transactions carried out between companies and professionals. Companies and professionals based in the Canary Islands, Ceuta or Melilla are also allowed to benefit from the VAT e-commerce import regime, without the need to have a representative in the Community.

Modification in the LIS and other regulations

In the field of Corporate Income Tax, amendments are made to Article 16 of the Corporate Income Tax Law (LIS) with effect from January 1, 2024, in order to align it with European Union regulations. This provision regulates the restriction on the deduction of financial expenses.

In addition, it is important to highlight that the recently published regulations include a third additional provision in Law 41/2003, of November 18. This provision establishes that all the tax benefits established both in that law and in any other state tax regulation, in relation to the protected estates of persons with disabilities constituted in accordance with Law 41/2003, will be applicable under the same terms and conditions to those constituted in accordance with the corresponding autonomous community laws that regulate this figure with the same purpose.

In addition, exclusively for the fiscal effects of the benefits established in said regulation or in any other state tax regulation, it will be considered that the person with disability in whose benefit the protected patrimony is constituted is the owner of the assets and rights that form part of said patrimony. Likewise, contributions made to the same by persons other than the owner will be considered lucrative transfers in favor of the latter.

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