Category: Ruling/Decisions and case law
The DGT concludes that machinery not subject to a license, even if essential for the activity, does not form part of the ICIO tax base
As recalled by the Spanish Directorate General for Taxes (DGT), the Tax on Constructions, Installations and Works (ICIO) does not tax the performance of an industrial or productive activity but rather the realization of an installation, construction, or work. The taxable event for the ICIO consists of carrying out any construction, installation, or work for […]
The DGT clarifies new rules on deductible financial expenses in Corporate Tax
These new rules are applicable for fiscal years beginning from 2024 and have been introduced to align Spanish regulations with the ATAD Directive. The deductibility of financial expenses in Corporate Tax (“CIT”) is one of the most controversial aspects in the scope of this tax. The general rule (established in Article 16 of Law 27/2014, […]
New developments on lawyer-client privilege in CJEU case law
In our last blog entry, we mentioned that the CJEU could clarify or refine its doctrine on professional secrecy in its upcoming ruling on case C-432/23, Ordre des Avocats du Barreau de Luxembourg. This anticipated judgment was issued on September 26, 2024. The release of this new ruling merits our immediate attention. The preliminary question […]
SOCIMI: Script Dividend not valid for meeting dividend distribution obligation when shareholders are PIT or NRIT taxpayers without permanent establishment
In a recent resolution, the General Directorate of Taxes (DGT) confirms that script dividends are only valid for fulfilling the dividend distribution obligation in the special regime of Listed Companies for Investment in the Real Estate Market (SOCIMI) when they generate income for the shareholder. This means that this mechanism is not valid for meeting […]
Lawyers’ Professional Secrecy in recent CJEU Jurisprudence
The CJEU has concluded that the reporting obligations established in the DAC are invalid insofar as they affect lawyers’ professional secrecy, as this guarantees the right to privacy and respect for clients’ private lives. However, it clarifies that the exemption from these obligations does not extend to tax advisors who are not lawyers. The Court […]
The Supreme Court definitively resolves which regulation governs the deduction for new fixed assets in the Canary Islands
The Supreme Court has concluded that the regulation governing the deduction for new fixed assets in the Canary Islands is Article 26 of the 1978 Corporate Income Tax Law and not, contrary to what the tax administration and majority jurisprudence have been defending, the 12th Additional Provision of the 1995 Tax Law. The Law 61/1978, […]