B Law & Tax
06 June 2023

Tax advisor: Income tax and non-resident income tax return forms

Order HFP/523/2023 approves the income tax and non-resident income tax return forms for permanent establishments and entities under the income attribution regime abroad with presence in Spain. It applies to the 2022 tax periods and establishes instructions and conditions for electronic filing. It will come into force as from 1 July 2023.

Published rules

– Law 11/2021, of July 9, implemented additional requirements for open-end investment companies (regulated by Law 35/2003, of November 4, on Collective Investment Institutions) to benefit from the reduced tax rate of 1 percent.

– Law 22/2021, of December 28, which establishes that the minimum tax rate will be 10% for newly created entities, which have an initial rate of 15%. For credit entities and those involved in the exploration, research and exploitation of deposits and subway storage of hydrocarbons, the minimum rate will be 18%, compared to the general rate of 30%. In addition, this law reduced the allowance applicable to entities engaged in the leasing of housing from 85% to 40%.

– Royal Decree-Law 31/2021, dated December 28, introduced changes to the Canary Islands Economic and Tax Regime by establishing an additional term to waive or revoke the special taxation regimes.

– Law 12/2022, of June 30, which promotes employment pension plans, included a 10% deduction in the total quota for company contributions to company social welfare systems made in favor of workers with salaries of less than 27,000 euros per year.

– Orders JUS/615/2022 and JUS/616/2022, issued on June 30, made changes to the process of filing annual accounts with the Commercial Registry. These changes require an update of the accounting items on pages 3 to 11 of Form 200 and pages 3A to 5C of Form 220.

– Royal Decree-Law 18/2022, published on October 18, implemented measures to prevent situations in which certain income is taxed neither at the headquarters of the entities in the attribution of income, nor at the headquarters of their participants, nor at the entity paying the income, known as hybrid asymmetries.

– Law 22/2022 of October 19 updated the Economic Agreement with the Community of Navarra. The threshold figure for the volume of operations that determines the competence for the collection and revision of the Corporate Income Tax (IS) was increased from 7 to 10 million. In addition, the tax authorities of Navarre are empowered to inspect the corporate income tax of taxpayers with tax domicile in the common territory, who pay taxes jointly and carry out more than 75% of their operations in Navarre. However, in the case of entities forming part of tax groups, 100% of the operations are required for this measure to apply.

In the 2022 corporate income tax campaign, new features have been introduced in forms 200 and 220. Four detail tables have been added to improve the information, control and assistance to taxpayers by the Tax Agency. These tables include information on partners of SICAVs in dissolution and liquidation regime, secondary activities carried out by the declarant, special regime for shipping entities in the Canary Islands and specific deductions. In addition, the forms to provide information on corrections and relevant deductions, the annual report of activities and projects carried out, and the reserve for investments in the Canary Islands are maintained. These forms are available at the AEAT Electronic Headquarters and have not been modified.

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