Form 232 is the informative return on transactions with related individuals or entities. Taxpayers of Corporate Income Tax and Non-Resident Income Tax which act through a permanent establishment, as well as the entities under the system of attribution of income registered abroad with presence in Spanish territory, that perform certain transactions with related individuals or entities may have this reporting obligation.
In particular, the following information should be reported:
1) INFORMATION OF TRANSACTIONS WITH RELATED ENTITITES OR INDIVIDUALS
- The operations carried out with the same related individual/entity, provided that the total amount of considerations exceeds 250,000 euros, according to the market value.
- Specific operations, provided that the combined amount of each type of operation in the tax period exceeds 100,000 euros. Specific operations are considered those to which the simplified documentation does not apply .
- Those transactions of the same type that utilize the same valuation method, provided that the amount of the set of such transactions in the tax period is greater than 50% of the turnover of the entity, regardless of the amount of the consideration of the set of operations carried out with the same related individual or entity.
Operations excluded from the obligation to file Form 232 (regardless of the volume of transactions)
- Transactions carried out between entities that are integrated into the same group of tax consolidation, without prejudice to the provisions of article 65.2 of the Corporate Income Tax Law (hereinafter, CITL).
- The operations carried out with its members or with other entities that are members of the same group of tax consolidation by “agrupaciones de interés económico” and “uniones temporales de empresas”. However, the aforementioned form must be filed by these temporary joint ventures, or similar collaboration formulas, that are subject to the regime established in article 22 of the CITL.
- Transactions carried out in the field of public offers for sale or acquisition of securities.
2) Transactions with related individuals or entities in case of application of the reduction of income from certain intangible assets
It must be reported in those cases in which the taxpayer applies the reduction foreseen in article 23 of the CITL, when obtaining income as a consequence of the assignment of certain intangibles assets to related individuals or entities.
3) Operations and situations related to countries or territories considered as tax havens
The taxpayers who carry out transactions or have securities in countries or territories qualified as tax havens must file the form regardless of their amount.
The Informative return of related operations and of operations and situations related to countries or territories considered tax havens must be filed in the following month to ten months after the conclusion of the corresponding tax year. Therefore, as a general rule, in the case of taxpayers whose financial year corresponds to the natural year, the deadline for submitting the declaration is set from November 1st to November 30th.
FORMS OF PRESENTATION
The filing of the Informative return of related operations and operations and situations related to countries or territories considered tax havens (Form 232), must be done electronically.
 The documentation to file is simplified for taxpayers whose volume of operations, according to the terms established for small companies, is less than 45 million euros, with the following exceptions:
1) Transactions carried out by Personal Income Tax taxpayers, in the development of an economic activity, to which the objective estimation method with related companies results.
2) The operations that consist in the transmission of business.
3) Transactions consisting in the transfer of securities or shares representing the participation in the equity of any type of entity not admitted to trading in any of the regulated securities markets or, are admitted to trading in a qualified country or territory as a tax haven.
4) The operations that consist in the transfer of real estate.
5) Transactions on assets that are considered intangible according to the accounting criteria.
B Law & Tax
International Tax & Legal Advisors