In its ruling, the Supreme Court ruled against the Treasury and establishes that the Administration must demonstrate that the taxpayer lacks valid reasons for claiming the dividend exemption. The Contentious-Administrative Chamber established a new doctrine that establishes that the burden of proof regarding the abuse that prevents benefiting from the exemption of dividends in the… Continue reading Tax advisor: Supreme Court requires Treasury to prove abuse before it can deny exemption for expatriate dividends
Tag: Spain
Tax advisor: It is possible to modify the choice between joint or individual taxation in Personal Income Tax when there is a change of circumstances not attributable to the taxpayer
By resolution no. 3890/2022, issued on March 28, 2023, the Central Economic Administrative Court (TEAC) has ruled on an extraordinary appeal for the unification of criteria. In this resolution, the TEAC establishes a criterion in relation to the irrevocability of the election between joint or individual taxation in Personal Income Tax (IRPF). In general terms,… Continue reading Tax advisor: It is possible to modify the choice between joint or individual taxation in Personal Income Tax when there is a change of circumstances not attributable to the taxpayer
Tax advisor: Termination of a senior management contract due to significant changes in working conditions
In situations where a special senior management employment relationship is terminated, case law has established that it is possible to apply the personal income tax (IRPF) exemption to the severance payment received by the senior manager. Therefore, the exemption has been recognized both in cases of termination of the senior management contract due to the… Continue reading Tax advisor: Termination of a senior management contract due to significant changes in working conditions
Tax advisor: The mechanism for the compensation of the Local Real Estate Tax exemption of rustic nature defined
The Resolution of June 9, 2023, issued by the General Secretariat of Autonomous and Local Financing, has been published in the BOE of June 14, 2023. This resolution establishes the procedure for the compensation of the exemption in the Rustic Real Estate Tax for the year 2023, as indicated in article 12 of Royal Decree-Law… Continue reading Tax advisor: The mechanism for the compensation of the Local Real Estate Tax exemption of rustic nature defined
Tax Advisor: Reduction of the Temporary Solidarity Tax on Large Estates in Madrid, Galicia and Andalusia
The Ministry of Finance has published in the Official State Gazette (BOE) the latest model of the solidarity tax on large fortunes. This tax seeks to counteract the autonomic bonuses in the wealth tax and its declaration will be carried out between July 1 and 31 of this year, based on the wealth declared in… Continue reading Tax Advisor: Reduction of the Temporary Solidarity Tax on Large Estates in Madrid, Galicia and Andalusia
Tax advisor: Compensation awarded to a senior executive due to an unfair dismissal
In relation to the possible application of the personal income tax (IRPF) exemption to severance compensation received by senior executives, the Supreme Court established in a ruling of November 5, 2019 a new interpretative criterion. In cases of termination of the senior management contract due to the employer’s retirement, the labor legislation recognized the right… Continue reading Tax advisor: Compensation awarded to a senior executive due to an unfair dismissal
Tax advisor: Navarra approves the revised text of the special tax regime applicable to foundations and other non-profit entities, as well as tax incentives related to patronage
The Foral Legislative Decree 2/2023, published in the Official Gazette of Navarra on June 13, has approved the revised text that includes the provisions of the special tax regime applicable to foundations and other non-profit entities, as well as the tax incentives related to patronage. This consolidated text seeks to regularize, clarify and harmonize the… Continue reading Tax advisor: Navarra approves the revised text of the special tax regime applicable to foundations and other non-profit entities, as well as tax incentives related to patronage
Tax advisor: Changes in maternity deductions for the years 2020 to 2022
The maternity deduction, established for mothers who have children under three years of age and are self-employed or employed, and who are registered in the corresponding social security or mutual insurance scheme, has undergone changes as of January 1, 2023 due to the Employment Promotion Law. According to this amendment, unemployed mothers are now also… Continue reading Tax advisor: Changes in maternity deductions for the years 2020 to 2022
Tax advisor: The documentation provided by a company does not represent a complete idea of the monetary flow that would justify the bank balance detected by the Inspection as previously hoarded money, and not as undeclared income in the Corporate Tax
In its ruling of February 17, 2023, the High Court of Justice of Andalusia (TSJA) examines whether it is appropriate to increase the tax base due to the discovery of a hidden asset. In particular, it deals with cash income that the Inspection presumes to correspond to undeclared income and that must be considered as… Continue reading Tax advisor: The documentation provided by a company does not represent a complete idea of the monetary flow that would justify the bank balance detected by the Inspection as previously hoarded money, and not as undeclared income in the Corporate Tax
Tax advisor: Restricting the refund of undue payments and the interest thereon, when made under national legislation contrary to EU law, violates the principles of effectiveness and loyal cooperation.
In its judgment of 8 June 2023, the Court of Justice of the European Union (CJEU) held that national legislation which temporarily limits the period for accrual of interest on the undue payment due to the taxpayer, because the tax which gave rise to that payment is considered to be contrary to EU law, infringes… Continue reading Tax advisor: Restricting the refund of undue payments and the interest thereon, when made under national legislation contrary to EU law, violates the principles of effectiveness and loyal cooperation.