Tag: tax advisor

In Personal Income Tax, if a taxpayer carries out an economic activity, late payment interest is a deductible expense

The issue of appeal focuses on determining whether, in the context of Personal Income Tax (IRPF), late payment interest, whether resulting from a liquidation in a process of verification of income related to the economic activity of an individual or those generated by the suspension of the execution of a contested administrative act, can be… Continue reading In Personal Income Tax, if a taxpayer carries out an economic activity, late payment interest is a deductible expense

How are non-residents taxed on real estate capital gains?

In accordance with domestic legislation, specifically Royal Legislative Decree 5/2004, of 5 March, which approves the revised text of the Law on Non-Resident Income Tax (LIRNR), income obtained in Spanish territory is understood to be income obtained directly or indirectly from real estate located in that territory or from rights related to the same. The… Continue reading How are non-residents taxed on real estate capital gains?

Announcement for the 2023 Income Tax Campaign

It is hereby informed that the Personal Income Tax (IRPF) declaration campaign for the fiscal year 2023 has been officially launched. From April 3rd to July 1st, 2024, taxpayers in Spain are obligated to file their Income Tax returns. It is relevant to note that the Tax Agency has introduced changes to the IRPF for the fiscal… Continue reading Announcement for the 2023 Income Tax Campaign

The new initiatives and proposal for a European regulation on the control of foreign investments to reinforce economic security in the European Union

In line with the European Economic Security Strategy published in June 2023. The five initiatives approved by the European Commission on January 24, 2024 cover the following objectives: The measures adopted by the Commission are as follows: After analyzing foreign direct investment operations over the past three years, the Commission proposes measures to strengthen the… Continue reading The new initiatives and proposal for a European regulation on the control of foreign investments to reinforce economic security in the European Union

Family business exemption: controversial issues regarding access requirements in light of the latest DGT pronouncements

Business people in a meeting at a conference table

Recently, the DGT, in its binding rulings V2752-23 and V2390-23, hasclarified its criteria regarding the fulfillment of certain requirements for accessing the family business exemption. The family business exemption is, to date, one of the main tax benefits for family businesses and, in many cases, has become indispensable for the survival and development of such… Continue reading Family business exemption: controversial issues regarding access requirements in light of the latest DGT pronouncements

Tax advisor:The National Court orders the refund of withholding taxes to foreign investment funds in Spain

The National Court has been resolving appeals filed by non-resident investment funds challenging the withholdings applied by the Tax Agency to dividends from Spanish companies. These withholdings, imposed at a rate of 15%, were deemed unfair compared to the 1% applied to similar institutions resident in Spain. As a result of the Supreme Court’s judgments… Continue reading Tax advisor:The National Court orders the refund of withholding taxes to foreign investment funds in Spain

Tax advisor: Fiscal Treatment of the Sale of shares in photovoltaic solar park development companies and its temporal allocation in the corporate income tax

Subsidiaries engaged in promoting photovoltaic solar parks are not considered holding companies, as they are involved in an economic activity. If these entities manage production resources or human capital to participate in the production or distribution of goods or services in the market, they may qualify for a tax exemption under Article 21 of the… Continue reading Tax advisor: Fiscal Treatment of the Sale of shares in photovoltaic solar park development companies and its temporal allocation in the corporate income tax

Tax advisor: The imposition of abusive agreements from a criminal perspective

Abuse of the majority in the adoption of agreements is punishable both from a civil or commercial perspective, when these exceed the normal limits of the exercise of the rights, causing damage to third parties (art. 7.2 of the Civil Code) and from a criminal perspective (art. 291 of the Criminal Code). Throughout this article… Continue reading Tax advisor: The imposition of abusive agreements from a criminal perspective

Tax advisor: Foreign Securities Holding Entities (ETVE): Considerations about the application of the ETVE regime

ETVEs are efficient corporate vehicles for investments abroad. These entities benefit from a special tax regime that significantly reduces the tax burden on foreign profits, which makes these vehicles highly attractive to international investors. However, the application of the special tax regime requires the fulfilment of several requirements. In the following, we will discuss the… Continue reading Tax advisor: Foreign Securities Holding Entities (ETVE): Considerations about the application of the ETVE regime