Judgment of the Union European Court of 26 October 2017

This judgment resolves a preliminary ruling that was raised by a Court of First Instance of Belgium about the Corporate Tax Belgium Law relating to the Directive 90/435 of Union European which rules the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States. This Directive aims to avoid the disadvantages that companies of different Member States have in comparison between companies that are in the same Member State.

On June 10th, 2005 the Spanish government approved Royal Decree 687/2005 implementing the Personal Income Tax (hereinafter, PIT) regulations in relation to article 93 of the Spanish PIT Law (hereinafter, SPITL), which is commonly known as the "Beckham law" and they regulate the procedure to apply for the new Spanish tax regime for expatriates in force since January 1st, 2004.

According to this law, natural persons who acquire their tax residence in Spain as a result of being posted to Spanish territory may opt for assessment under Spanish Non-Residents Income Tax rules for a period of up to six tax years (the year in which the expatriate acquires the tax residency in Spain and the following five consecutive years) instead of under the PIT rules for resident individuals provided that certain conditions are met.

The Unit Linked goes one step further than life insurances instruments. It covers death, disability or retirement, but also allows the policyholder to choose in which stocks, bonds or mutual funds invest the product.

The Unit Linked combines the tax benefits of life insurance with the profitability and liquidity of an investment instrument, being advantageous too for inheritance and wealth tax planning.

The Spanish Corporate Tax Law provides an Special Tax Regime to those entities which main business activity consists on rental of real estate properties (dwellings) located in Spain. This Special Tax Regime allows the entity to conduct other complementary business activities under certain requirements. The regime consists in an attractive tax benefits for the income derived of the rental activity.

On August 28th of this year, the Ministerial Order HFP / 816/2017 was passed, which establishes that the information concerning to related-parties transactions and situations associated to countries and territories considered as tax havens, which were traditionally reported through Form 200 Corporate Tax, it must be informed separately through Form 232 of "Informative statement of related-parties transactions and situations associated to countries and territories qualified as tax havens”. (BOE 30-8-2017).