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).
In this sense, the information to be declared in Form 232 is the following:
- Transactions with related persons or entities, in compliance with the obligation established in article 13.4 of the Corporate Tax Regulations (hereinafter as "CTR").
- Transactions with related persons or entities, for the cases of reduction of income from certain intangible assets (article 23 and Transitional Provision 20 of the Corporate Tax Law (hereinafter "CTL")).
- Operations and situations related to countries or territories considered as tax havens.
Who is required to submit.
In accordance with the Ministerial Order, the following related persons and entities taxpayers of the Corporate Tax, and taxpayers of the Non-Residents Income Tax with permanent establishment, and organizations under the income allocation system incorporated abroad with presence in Spanish territory, they are required to submit the form 232:
- The entities or persons whose transactions with the same person or related companies and the amount of the whole operations exceeds 250.000 euros, according to the market value.
- The related persons or entities conducting specific transactions provided the aggregate amount of each transaction exceeds 100.000 euros. For these purposes, it is understood as specific transactions the ones that are excluded from the simplified content of the documentation referred to in Articles 18.3 of the Corporate Tax Act and 16.5 of the Corporate Tax Regulations (property transfer, business transfer, among others).
Regardless of the amount of all transactions conducted with the same related person or entities, it is also mandatory to inform about transactions of the same nature and using the same valuation method if the aggregate amount of such transactions exceeds 50% of the entity's turnover.
Likewise, related entities or persons, when applying the reduction on income from specific intangible assets because of the assignment of certain intangibles to related persons or entities, they shall be obliged to submit the mentioned form.
On the other hand, entities that, within the tax period, have carried out operations related to countries or territories considered as tax havens or have securities with those territories regardless of their amount, they are obliged to submit the information form on operations and situations related to countries or territories considered as tax havens.
The related persons and entities are excluded from reporting the following transactions:
- Those made between entities that are members of the same tax consolidation group.
- Operations carried out with members by economic interest groups and joint ventures registered in the special Registry of the Ministry of Finance and Public Administration, except for temporary joint ventures, or similar kind of collaboration to temporary joint ventures under the regime established in Article 22 of the CTL.
- Operations carried out in the field of Initial Public Offering (IPO).
Form and deadline.
The requirement to file the form 232 shall apply to tax periods beginning on or after January 1, 2016. It shall be filed within the month following ten months after the end of the tax period to which the information refers.
For tax periods beginning in 2016, the form must be presented within the month following ten months after the end of the tax period to which the information relates., i.e. if the period ends on December 31, the information must be submitted in November 2017.
Regarding the presentation of the form 232, it will be compulsory by electronic means, through the Internet, in accordance with the procedure established in article 17 of Order HAP / 2194/2013, of November 22th.