Gifts: when the least costly part is the gift tax
When considering the tax cost of a gift, besides gift tax, there are other taxes which at times can be more costly than the gift tax itself, such as personal income tax and tax...
Category: Tax
Exemption for work performed abroad
Article 7.p) of the Personal Income Tax Law regulates an exemption for earned income of up to €60,100 per annum, subject to compliance with certain requirements. This exemption is applicable to taxpayers who, while...
Changes in tax rules aimed at consolidating public finances
Royal Decree Law 3/2016 for the adoption of tax measures designed to consolidate public finances and other urgent social measures was published on December 3. Its objective is to incorporate into Spanish legislation certain...
Concessionaire structures within multinational groups in Spain
On June 20, 2016, the Supreme Court handed down its judgment in respect of the cassation appeal filed by DELL Products Ltd (‘Dell’) against the judgment of the National Appellate Court dated June 8, 2015. The...
The Group as a single taxpayer for Corporate Income Tax purposes
The new Corporate Income Tax Law which came into force in 2015 introduced a very subtle change which has nevertheless brought about changes to some fundamental aspects of the tax consolidation regime for Corporate...
The new reform of the Corporate Income Tax Law
On Friday December 2, the Spanish Council of Ministers approved as a matter of urgency a package of tax measures aimed primarily at reducing the public deficit. Once again, the reform mainly affects businesses,...
Plot twist in relation to the personal income tax treatment of EFT?
A recent ruling by the Directorate-General of Taxes (“DGT”) reopens the debate regarding the personal income tax treatment of listed investment funds, known as exchange trade funds (“ETF”) and the particular aspects that must...
Refunds for collar or ‘floor’ clauses: personal income tax repercussions
A few months ago we discussed the tax effects of the elimination of collar or ‘floor’ clauses from mortgage agreements and the refunds of the interest paid in excess under those clauses, which financial...
The concept of ‘economic activity’
Broadly speaking, the regime for entities engaging in the leasing of housing (REAV), which is set out in the current Corporate Income Tax Law (LIS) and in the now repealed Revised Corporate Income Tax...
Refunds under collar clauses are accountable to the tax authorities
Since the Supreme Court judgment of May 9, 2013, there have been many financial institutions that have eliminated “collar clauses” from their mortgage contracts and have refunded the excess interest paid under those clauses...
