The Tax on Major Fortunes decreases by 95% its collection in 2024

The Tax on Major Fortunes decreases by 95% its collection in 2024

The Supreme Court has recognized the possibility of deducting the remunerationof administrators in cases where the company’s bylaws establish that the position is unpaid

The Supreme Court, in its ruling of June 27, 2023, determined that the position of the Tax Agency, which systematically denied the deduction of these remunerations by classifying them as “gratuities or donations” due to mercantile irregularities, was unreasonable. This approach was endorsed by the Supreme Court in other judgments issued on November 2, 2023, and on… Continue reading The Supreme Court has recognized the possibility of deducting the remunerationof administrators in cases where the company’s bylaws establish that the position is unpaid

The Community of Madrid Initiates the process for processing deduction in Personal Income Tax to attract foreign investment

The Community of Madrid, within the framework of its legislative prerogative, has initiated the processing of the new deduction contemplated in the Personal Income Tax (IRPF), with the purpose of promoting and attracting foreign investments. This process is based on the aim of fostering international investment in the Madrid region, and aligns with the regulatory initiative… Continue reading The Community of Madrid Initiates the process for processing deduction in Personal Income Tax to attract foreign investment

The Court declares that the rectification request does not interrupt the prescription period as it is not related to previous inspection actions

It is emphasized that the appellant seeks to apply the deduction to avoid double internal taxation of dividends, a matter that was not addressed in its self-assessments for the years 2009 and 2010. The Superior Court of Justice of Madrid, in its ruling of December 13, 2023, examines whether the rectification request made by the… Continue reading The Court declares that the rectification request does not interrupt the prescription period as it is not related to previous inspection actions

Tax advisor: Improved tax deduction for investing in new or newly created companies

Law 28/2022, approved on December 21, has introduced improvements to the deduction for investment in start-up companies as established in article 68.1 of the Personal Income Tax Law (LIRPF). These improvements include an increase in the deduction percentage from 30% to 50% and an increase in the maximum deduction base from 60,000 to 100,000 euros… Continue reading Tax advisor: Improved tax deduction for investing in new or newly created companies

Tax advisor: The tax benefit related to the tax deduction of the financial goodwill cannot be applied

In the Ruling of February 28, 2023, the National Audience examines whether the tax benefit related to the financial goodwill tax deduction set forth in Article 12.5 of the TRLIS, which the taxpayer used in its corporate income tax returns for the years 2008 and 2009, is applicable to the current case. This arises as… Continue reading Tax advisor: The tax benefit related to the tax deduction of the financial goodwill cannot be applied

Tax Advisor: Extension of the deductions in the Personal Income Tax of the Community of Madrid for 2023

Law 10/2023, of April 12th, which has been published in the Official Gazette of the Community of Madrid, has modified the Law of Madrid’s Assigned Taxes. The objective is to incentivize improvements in rental housing through the introduction of new deductions in the Personal Income Tax. New measures Among all the new measures we will… Continue reading Tax Advisor: Extension of the deductions in the Personal Income Tax of the Community of Madrid for 2023

Tax advisor: The bank certificate is sufficient to prove the loss due to the transfer of financial investments between related companies

The question that arises is the deductibility of losses due to the transfer of financial investments between related companies. The Administration has denied the deduction of the due to the bankruptcy of the related company, considering that the evidence provided by the plaintiff was insufficient. The Chamber considers that the subject matter of the appeal… Continue reading Tax advisor: The bank certificate is sufficient to prove the loss due to the transfer of financial investments between related companies

Tax advisor: Without business concealment, there is no simulation

According to the principles of the General Theory of Law, when a contract is entered into for a different purpose than the one normally attributed to it, a defect in the cause may arise. This situation can be divided into two types of contracts: those with a false cause, in which the parties do not… Continue reading Tax advisor: Without business concealment, there is no simulation

Tax advisor: The Supreme Court partially upholds the challenge on the derivations of joint and several liability of article 42.2 of the General Tax Act.

The Supreme Court ruled in appeal 3742/2021 on this matter. The objective was to establish whether, in cases in which a declaration of liability under article 42.2.a) of the General Tax Act is partially annulled by a court judgment, decreasing its scope, the tax administration has the obligation to issue a new declaratory act of… Continue reading Tax advisor: The Supreme Court partially upholds the challenge on the derivations of joint and several liability of article 42.2 of the General Tax Act.