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The Spanish rules on withholding taxes on dividends paid to foreign shareholders are contrary to EU law
According to the Court of Justice of the European Union, the Biscayan rules on non-resident income tax grant different treatment to withholdings borne by national shareholders as compared with those borne by non-resident shareholders, which is contrary to the Treaty on the Functioning of the European Union. The distribution of a dividend by a company […]
The new waste tax and its numerous questions
Law 7/2022, of 8 April, has incorporated the obligation for all municipalities in Spain to approve a tax or a public non-tax financial contribution that adheres to the principle of “the polluter pays”. Below, we analyze some of the questions raised by this obligation. Directive (EU) 2018/851 of the European Parliament and of the Council […]
The Spanish participation exemption on dividends and capital gains is a “full exemption” for the purposes of the Controlled Foreign Company regime
According to the Directorate General of Taxes, exempt dividends and capital gains obtained by foreign holding companies do not have to be declared in Spain. Controlled Foreign Company (CFC) regimes are traditionally anti-abuse rules aimed at avoiding the deferral of taxation of income – normally of a “passive” or non-business nature – in controlled foreign […]
Reflections on expert evidence in tax proceedings
In recent rulings related to the deduction for R&D&i in Corporate Income Tax and for Hydrocarbon Tax, the Supreme Court offers important reflections on the value of expert evidence in tax proceedings and on the value of reports issued by officials of the Tax Administration itself. The Supreme Court has recently handed down five important […]
The Supreme Court of Spain delimits the binding scope of the reasoned report for the R&D&I deduction
The Supreme Court has confirmed that the reasoned reports are binding on the tax administration both in the classification of the activity and in the quantification of the basis for the deduction for tax years started before 2015. However, the issue is still open to discussion for deductions generated after that date, as pointed out […]
First State and Autonomous Community tax measures to support those affected by the DANA (and others that could be considered)
The State and Autonomous Community governments affected by the DANA that occurred between 28 October and 4 November 2024 have approved various tax measures aimed at alleviating the economic costs and formal obligations of those affected in these first months. We review the main measures already approved and propose others that could be considered. In […]