The Supreme Court has reaffirmed the importance of the principle of proportionality, indicating that it not only guides interpreters of the law in modulating penalties but that legislators must also take it into account when establishing tax penalties. This doctrine may lead to the annulment of penalties by ordinary courts if a lack of proportionality… Continue reading Tax advisor: The Supreme Court and the principle of proportionality as a cornerstone in VAT tax penalties
Tag: administrative cooperation
Tax advisor: The Community of Madrid temporarily takes over the collection of the Solidarity Tax to alleviate the regional tax burden
The Community of Madrid will temporarily take on the responsibility of collecting the Temporary Solidarity Tax on High Fortunes, approved by the central government, with the purpose of using the funds to further reduce the tax burden in the region. To achieve this, it will adjust the rebate on the Wealth Tax for those already… Continue reading Tax advisor: The Community of Madrid temporarily takes over the collection of the Solidarity Tax to alleviate the regional tax burden
Tax advisor: Tax Challenges in R&D: Change of Criteria and Legal Hopes
Until mid-2022, the General Directorate of Taxes (DGT) allowed corporate income tax (CIT) payers to declare R&D tax deductions in a self-assessment, even if they had not been included in previous fiscal periods in which they were generated. However, starting in June 2022, the DGT changed its stance, limiting the application of deductions to the… Continue reading Tax advisor: Tax Challenges in R&D: Change of Criteria and Legal Hopes
Tax advisor: Beckham Law: pending regulatory development
Foreign workers planning to arrive in Spain in 2023 face some legal uncertainty due to the delay in the approval of the regulations for the ‘Beckham Law,’ which allows foreigners to be taxed through the Non-Resident Income Tax (IRNR) instead of the Personal Income Tax (IRPF), with a fixed rate of 24% up to 600,000… Continue reading Tax advisor: Beckham Law: pending regulatory development
Tax advisor: Constitutional Court Ruling: Support for the Wealth Tax and Disagreements
The Constitutional Court backed the wealth tax, rejecting the appeal filed by the President of the Community of Madrid, Isabel Díaz Ayuso. The ruling, approved by seven progressive votes against four conservative ones, bases its support for the tax on the lack of confiscatory nature and the absence of violation of regional competencies. The dissenting… Continue reading Tax advisor: Constitutional Court Ruling: Support for the Wealth Tax and Disagreements
Tax advisor: Modification in Taxation: VTC Licenses and the Objective Estimation Method in Passenger Transport
The General Tax Directorate adjusts its previous stance regarding the taxation of passenger transport with VTC licenses using the objective estimation method, adopting the criterion established by the Central Economic-Administrative Tribunal (TEAC). This modification is reflected in a binding response (V2219-23) issued on July 27, 2023. Previously, in binding consultations, Taxation maintained that this activity… Continue reading Tax advisor: Modification in Taxation: VTC Licenses and the Objective Estimation Method in Passenger Transport
Tax advisor: The Galician High Court (TSJ) indicates that the modification in installment payments by the 2018 LGP constitutes “improper retroactivity.”
The Court considers that Law 6/2018 has amended Additional Provision 14 of Law 27/2014, on Corporate Income Tax, for the tax period beginning on January 1, 2018 (and subsequent periods). Although this period was already underway, the modification was made before the accrual date (last day of the tax period). This is classified, according to… Continue reading Tax advisor: The Galician High Court (TSJ) indicates that the modification in installment payments by the 2018 LGP constitutes “improper retroactivity.”
Tax advisor: Constitutional Court Decision on Wealth Tax in Madrid
The Constitutional Court has rejected the unconstitutionality appeal filed by the Community of Madrid against Law 38/2022, which establishes the temporary solidarity tax on large fortunes. The Community of Madrid argued that this tax interferes with its financial autonomy by nullifying the management of devolved taxes, especially the wealth tax, and that it harms its… Continue reading Tax advisor: Constitutional Court Decision on Wealth Tax in Madrid
Tax advisor: Navarre strengthens fiscal cooperation and transparency with the modification of the Tax Law
Navarre adjusts its General Tax Law to incorporate the modifications of the Directive on Administrative Cooperation in Tax Matters (DAC 7), with the aim of enhancing administrative collaboration and information exchange within the EU. A new reporting obligation for digital platform operators is established, and joint inspections are regulated, along with changes in the obligation… Continue reading Tax advisor: Navarre strengthens fiscal cooperation and transparency with the modification of the Tax Law
Tax advisor: Tax developments in administrative cooperation in the fiscal area and other tax regulations
Law 58/2003 of December 17, 2003, General Tax Law, following the guidelines of Council Directive (EU) 2021/514 of March 22, 2021, which alters Directive 2011/16/EU on administrative cooperation in the field of taxation, and other tax provisions, has been approved and is ready for its disclosure in the BOE and its implementation. The purpose of… Continue reading Tax advisor: Tax developments in administrative cooperation in the fiscal area and other tax regulations
