Category: International taxation
Taxation of royalties: the Supreme Court gives primacy to the Directive over agreements
In a recent and controversial judgment, the Supreme Court affirms that when the Interest and Royalties Directive cannot be applied because the recipient of the royalties is not the “beneficial owner”, the withholding tax rate established in the Spanish domestic non-resident income tax regulations must be applied, rather than the reduced rate of the corresponding […]
E-commerce in light of recent changes to customs regulation
In order to strengthen control and revenue collection, and to encourage more efficient and sustainable logistics models, the EUR 150 customs duty exemption is set to be abolished from mid-2028, with a transitional EUR 3 customs duty to be introduced in the interim. Additionally, a handling fee per package is expected to be introduced and […]
What changes in Pillar 2 after the introduction of the new OECD Safe Harbours
The OECD proposes new permanent safe harbours with the aim of simplifying the standard calculation rules of the Global Complementary Minimum Tax (Pillar 2) and reducing the possibility of an obligation to pay tax on this tax. In addition, it proposes the extension of the existing transitional CbCR safe harbour for one year. On 5 […]
Teleworking and permanent establishment? The new keys to the OECD convention
The OECD insists on the concepts of availability of housing by the company and habituality in the exercise of the activity from that domicile; and underlines the importance of there being a commercial reason for the provision of services under a teleworking regime. Remote working has become a common practice in many organizations, especially after […]
Residents outside the European Union or the European Economic Area can also deduct expenses from their rental income
The National High Court fully accepts the application of the principle of free movement of capital to third countries for income from real estate leases, although there is no case law of the CJEU for the specific case of this type of income. Tax payers resident in Spain determine the income from real estate capital […]
Double taxation treaties prevail over domestic law
According to the Spanish National Appellate Court (Audiencia Nacional), Brazilian “juros” must be classified as dividends for the purposes of the double taxation agreement between Spain and Brazil. Therefore, since treaties prevail over domestic law, the treaty-based exemption for such income cannot be denied. Brazilian tax law allows companies resident in Brazil to distribute to […]
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