|Garrigues, Taxand Spain|
|Baker & McKenzie|
|Cuatrecasas, Gonçalves Pereira|
|Freshfields Bruckhaus Deringer|
|Transfer Pricing Services|
|Ramón y Cajal Abogados|
The political situation in Spain is ambiguous at best after two general elections failed to return a majority government, meaning the legislative environment for taxpayers is uncertain. It is possible that the next majority government could reverse the fiscal reforms, which have included tax measures, which have taken place since the financial crisis. Without a clear political direction, taxpayers cannot plan for all tax and transfer pricing risks.
The implementation of the BEPS Action Points into domestic law has, for the most part, already taken place, with Spain being a rapid adopter of both the OECD guidelines and the EU Anti-Tax Avoidance Directive which was implemented in Spain before it cleared the European parliament.
Spain was also one of the first countries in the world to implement country-by-country reporting (CbCR) requirements, which came into effect from January 1 2016.
New rules on TP documentation were agreed in July 2015 and have been in effect since January 1 2016, requiring multinationals to prepare a master file for submission to the Spanish tax authorities. This file will have to detail the group's organisational structure, a description of its business activities, its intangibles, its financial activities and its financial and tax positions.
Given that Spain is ahead of other jurisdictions on BEPS implementation, it has been necessary for the tax authorities in the jurisdiction to discuss with taxpayers their thinking on certain issues, something which they have been happy to do according to Rafael Fuster, head of tax at Uría Menéndez.
"There are a lot of tax officials making themselves available to explain the ideas and how they see things – making themselves available for discussion," said Fuster. He further noted that the Spanish tax authorities "want to be on the front line of the developments of BEPS, so far as implementation is concerned".
(As of July 2016)
|Corporate income tax||25% (a)|
|Capital gains||0% to 19% (b)|
|Branch tax||25% (c)|
Withholding tax (d)
|Dividends||0% to 19% (e)|
|Interest||0% to 19%|
|Royalties from patents and licences||0% to 24%|
|Branch remittance tax||0% to 19%|
Net operating losses (years)
|Carryforward||Without time limit (f)|