Zsofia Troll 🔹Transfer Pricing Expert🔹

Spain introduces draft bill for implementing Pillar 2 Global Minimum Tax The Council of Ministers, Spain, has sent the Cortes bill to transpose the European directive that guarantees a minimum global taxation of 15% for groups of multinational companies and large national groups in the European Union. The text complies with the agreement reached by the Organization for Economic Cooperation and Development (OECD) - already ratified by more than a hundred countries - to fight against the transfer of the profits of large multinational groups to places of lower taxation. The bill establishes a global minimum tax rate for multinational business groups or large national groups whose turnover exceeds 750 million euros. The rule seeks to prevent companies from shifting profits to territories with low or no taxation, which harms Member States' income and leads to a spiral in which countries are forced to reduce their corporate tax rates to attract investments. source: Taxmann #Pillar2

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The IAE Tax in Spain: A Comprehensive Guide 📚 The IAE is a local tax levied on economic activities conducted within Spanish territory, affecting both companies and self-employed individuals. Understanding its nuances is essential for ensuring compliance and optimizing your business operations. The Impuesto de Actividades Económicas (IAE) is determined by the type and location of the economic activity, with varying rates. Companies and freelancers must register with their local tax office and calculate the tax annually. New businesses can benefit from initial exemptions in the first two years, and certain activities or entities, such as non-profits and qualifying small businesses, may receive reductions or complete exemptions. Correctly classifying your business activities is crucial to avoid overpayment or penalties. Misclassification can result in significant financial repercussions, including fines and back taxes. Proper IAE tax management helps maintain good standing with tax authorities and supports your business's financial health. But there's much more to learn. The article also covers the implications of non-compliance, strategies for minimizing your IAE tax burden, and practical examples to illustrate the application of the tax. 👉 To discover all the details and continue reading, visit: https://lnkd.in/eBpENa-U If you have any questions or need assistance with the IAE tax, don't hesitate to contact us. We're here to help you navigate this complex tax landscape with ease. #IAETax #Spain #BusinessTax #TaxCompliance #Lawants

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💡 Did you know you can reclaim withholding tax on Spanish dividends?   For example, if a German tax resident received dividends from Banco Santander in January 2023, a standard 19% withholding tax would be applied. However, the Double Taxation Agreement (DTA) between Germany and Spain allows a lower rate of 15%. This means you can reclaim the 4% difference by filing a claim with the Spanish tax authorities. The deadline to submit this claim is typically February 1st of the following year, but you generally have up to four years to make the reclaim.   Maximise your earnings by reclaiming your withholding tax – ask IberianTax how we can help! 💰

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𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐓𝐚𝐱𝐞𝐬 𝐢𝐧 𝐒𝐩𝐚𝐢𝐧: 𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐟𝐨𝐫 𝐁𝐮𝐲𝐞𝐫𝐬 If you're considering buying property in Spain, it's crucial to understand the various taxes involved. Spain’s tax landscape can be complex, especially for non-residents, but a clear grasp of the basics will help you avoid surprises. 𝟭. 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗧𝗮𝘅 (𝗜𝗧𝗣) When purchasing a resale property, you'll need to pay the Property Transfer Tax (ITP). Rates vary by region, typically between 6% and 10% of the purchase price. This tax is due within 30 days of signing the purchase deed (escritura pública). 𝟮. 𝗩𝗔𝗧 (𝗜𝗩𝗔) 𝗮𝗻𝗱 𝗦𝘁𝗮𝗺𝗽 𝗗𝘂𝘁𝘆 (𝗔𝗝𝗗) For new properties or those bought from developers, VAT (IVA) applies instead of ITP. The standard rate is 10% for residential properties and 21% for land or commercial properties. Stamp Duty (AJD), ranging from 0.5% to 1.5% depending on the region, is also payable. 𝟯. 𝗔𝗻𝗻𝘂𝗮𝗹 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗧𝗮𝘅 (𝗜𝗕𝗜) After purchasing a property, you'll be responsible for the annual property tax, known as IBI. Set by local municipalities, the rate usually ranges from 0.4% to 1.1% of the cadastral value, which is typically lower than the market value. 𝟰. 𝗡𝗼𝗻-𝗥𝗲𝘀𝗶𝗱𝗲𝗻𝘁 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 (𝗜𝗥𝗡𝗥) Non-residents who own property in Spain must pay a non-resident income tax, even if the property isn’t rented out. This is based on potential rental income, calculated at 1.1% or 2% of the cadastral value, taxed at 19% for EU residents and 24% for non-EU residents. 𝟱. 𝗪𝗲𝗮𝗹𝘁𝗵 𝗧𝗮𝘅 Spain imposes a wealth tax on individuals with assets exceeding a certain threshold, including real estate. For non-residents, the taxable threshold generally starts at €700,000, with rates from 0.2% to 3.5%. However, many regions offer exemptions, so consulting a tax advisor is wise. 𝟲. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 𝗧𝗮𝘅 (𝗖𝗚𝗧) If you sell your property, you’ll be subject to Capital Gains Tax (CGT) on the profit. The flat rate for non-residents is 19%. Certain costs, like renovations, can be deducted to reduce your taxable gain. Practical Tips: - 𝐄𝐧𝐠𝐚𝐠𝐞 𝐚 𝐋𝐨𝐜𝐚𝐥 𝐓𝐚𝐱 𝐀𝐝𝐯𝐢𝐬𝐨𝐫: Spain’s tax laws are complex, particularly for non-residents. A local advisor can provide tailored advice based on the region where you're buying. - 𝐅𝐚𝐜𝐭𝐨𝐫 𝐢𝐧 𝐀𝐥𝐥 𝐂𝐨𝐬𝐭𝐬: Beyond the purchase price, remember to account for taxes and ongoing expenses in your budget. - 𝐒𝐭𝐚𝐲 𝐔𝐩𝐝𝐚𝐭𝐞𝐝: Tax rates and regulations can change, so keep informed about the latest developments. Buying property in Spain can be a rewarding investment, but understanding the tax implications is essential. With the right preparation and professional guidance, you can navigate Spain's tax landscape with confidence. CONTACT US should you need more information or to speak to our lawyer 📧 [email protected] #taxspain #buyinginspain #realestate

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Is registration in Spain enough to establish tax residency? The General Directorate of Taxes (DGT) says no. Registration alone doesn’t show where you really live for tax purposes. The proof you need is a Tax Residency Certificate, not just a city council registration. However, the Spanish Tax Agency (AEAT) recently denied a Beckham Law application because they thought the person was a tax resident due to their earlier registration in Spain. It's a serious issue that AEAT still uses registration as a key factor for tax residency, despite the DGT's clear guidance. If you’re facing tax residency issues or know someone who is, consult a tax professional. The right documents are crucial for your tax status. - Liked this? Follow me at Sergi Garces Hit the 🔔 to get notified when I post. #taxtips #taxresidency #taxadvisor  #foreigninvestors  #ippailaw

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#InternationalTax #WorldTaxNews [New Column] Taxmann’s World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week. Topics Covered: • Spain introduces draft bill for implementing Pillar 2 Global Minimum Tax • Russian outlines conditions for reduced corporate tax rate for IT sector • German Ministry of Finance releases draft minimum tax return for public consultation • Malaysia publishes 'Implementation Timeline' and 'FAQs' on Pillar 2 Global Minimum Tax Read the Full Column: https://lnkd.in/dWhnv2Wf [4 Mins | Read Time] Drafted by Taxmann's Editorial Team 𝐅𝐨𝐫 𝐃𝐚𝐢𝐥𝐲 𝐓𝐚𝐱 & 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐋𝐚𝐰 𝐔𝐩𝐝𝐚𝐭𝐞𝐬, 𝐅𝐨𝐥𝐥𝐨𝐰 '𝐓𝐚𝐱𝐦𝐚𝐧𝐧' 𝐨𝐧 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩: https://lnkd.in/dXuaSZhc #TaxmannUpdates #PillarTwo #GlobalMinimumTax #OECD

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Discover #IGIC, the special VAT in the Canary Islands🌴, that provides cost-saving advantages for businesses and consumers.💳 Join us as we explore the differences between IGIC and the standard VAT in mainland Spain🇪🇸 👉 https://buff.ly/3Ss9y85 #taxuallyblog

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📚 Here are three articles discussing local and international tax policy themes relevant for LatAm that are recommended by the Latin American Tax Policy Forum (LATPF): 💲 In "Original Sin: Cost Sharing in the United States", Elizabeth Stevens and H. David Rosenbloom discuss the extent to which U.S. cost sharing regulations have caused much of the turmoil that resulted in the OECD - OCDE BEPS Action Plan and the Two-Pillar solution. They also link tax policy failures in the U.S. to the ensuing wave of State Aid cases in the European Union (e.g., Apple). As said in the article: "[T]he United States' misguided cost-sharing policy both sacrificed billions of dollars of tax revenue and destabilized a long-standing international tax consensus. [...] The lesson for would-be U.S. policymakers is a simple one: Do not sit on your taxing rights; if you don't tax it, someone else will." The article is available on Tax Notes here: https://bit.ly/40EHO56 🌴 In "Constitution and Tax Standards that Induce Environmental Protection: Analysis, Perspective and Sustainability of Green Taxes", Kyvia C. Chevalley, Pierre Franklin Araujo Silva and William Eufrasio Nunes Pereira delve into the future of eco-taxes in Brazil. The authors investigate the aspects of the new Brazilian indirect tax reform that are tied to environmental sustainability, with a particular focus on the destination of the new Goods and Services Tax collections. It would be interesting for readers to consider the authors' observations in light of the ongoing debate about the scope of the new Selective/"Sin" Tax, which is also part of the reform (see article written by Felipe Kertesz Renault and Fabio G. in Portuguese for JOTA here: https://bit.ly/4emlws4). The article is available in Portuguese as part of Cadernos de Dereito Actual (Asociación Xuristas en Acción) here: https://bit.ly/4fEeVu1 📜 In "Las cláusulas antielusión y su interacción con los convenios para evitar la doble imposición", Javier Marinone analyzes anti-abuse clauses added to tax treaties before and after BEPS Action 6. The author emphasizes that even rules like the PPT do not vest tax authorities with the power to "create" taxable events out of thin air - their application of these clauses should be "extraordinary, careful and precise". The author also discusses the well-known Molinos case, which was highlighted by Christos A. Theophilou in a recent article (discussing the asymmetrical application of BEPS Action 6 around the world - https://bit.ly/40GoBzV). The article is available in Spanish as part of Revista de Tributación (Asociación Argentina de Estudios Fiscales ) here: https://bit.ly/4es6RLM

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𝐊𝐧𝐨𝐰𝐥𝐞𝐝𝐠𝐞 𝐇𝐚𝐬 𝐍𝐨 𝐁𝐨𝐮𝐧𝐝𝐚𝐫𝐢𝐞𝐬 𝐑𝐞𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐰𝐢𝐭𝐡𝐨𝐮𝐭 𝐫𝐨𝐥𝐞 𝐬𝐡𝐢𝐟𝐭: 𝐅𝐢𝐱𝐞𝐝 𝐏𝐥𝐚𝐜𝐞 𝐏𝐄 𝐞𝐱𝐩𝐨𝐬𝐮𝐫𝐞 We all know that the anti-fragmentation clause was introduced in Article 5(4) by the 2017 version of OECD MC, and the Multilateral Instrument recently introduced the principal purpose test. Thus, in common parlance, one would have to satisfy the aforementioned tests for any transactions undertaken after the introduction of these tests. However, ever thought that these tests would be relevant for transactions undertaken before their introduction in the bilateral agreements? In this edition of 𝐀𝐫𝐨𝐮𝐧𝐝 𝐓𝐡𝐞 𝐆𝐥𝐨𝐛𝐞, we bring to you a decision by the Supreme Court of Spain wherein a similar issue was dealt with. The Supreme Court applying the anti-fragmentation clause and principal purpose test, held that the business restructuring undertaken by the taxpayer group (before the introduction of these tests in the bilateral agreement) without any substantial role change resulted in the triggering of Fixed Place PE. The decision and the analysis can be accessed from the following link https://lnkd.in/gYfvamKC If you are keen on receiving tax treaty insights, subscribe now to WhatsApp channel https://lnkd.in/gcA_eGGk To catch up on earlier posts, subscribe now to the “Tax Treaty Insights” page https://lnkd.in/gW8idiGb #businessrestructuring #MandA #mergersandacquisitions #antifragmentation #PPT #principalpurposetest #businessactivity #AE #MLI #OECD #TaxTreatyInsights #taxtreaty #taxtreatyinterpretations #internationaltax #crossborder #courts #opinions #permanentestablishment

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[ Offshore Tax ] Exploring the Tax Treatment of Various Autonomous Regions in Spain. Spain operates under a decentralized tax system, meaning the central government and the 17 Autonomous Communities (Comunidades Autónomas) share the responsibility for levying and collecting taxes. This creates disparities in tax treatment across different regions. KEY ASPECTS OF SPAIN'S DECENTRALIZED TAX SYSTEM Tax Sharing and Autonomy Shared Taxes: Taxes like Personal Income Tax (IRPF) and Value Added Tax (IVA) are agreed upon between the central government and the regions. A portion of the revenue is collected centrally and then distributed back to the regions based on a predetermined formula. Regional Autonomy: Each region has some autonomy over these shared taxes. They can set tax rates within certain limits and introduce tax deductions or exemptions. This explains the variations in tax burden across different regions. Examples of Regional Tax Disparities Personal Income Tax (IRPF): The central government sets a minimum tax rate for each income bracket. However, regions can increase these rates. This means some regions have higher income taxes compared to others. Inheritance and Gift Tax: Similar to IRPF, the central government sets minimum rates, but regions can increase them. This creates significant differences in inheritance and gift tax burdens depending on the region. Property Taxes: These are primarily levied by local municipalities, but regional governments can set surcharges on these taxes, leading to variations in property tax burdens. Impact and Considerations Regional Competition: he tax autonomy granted to Spain's Autonomous Communities creates a competitive environment between regions. Some regions might offer lower taxes to attract businesses and residents. National Cohesion Concerns: The significant tax disparities between the regions raises concerns about national cohesion and fairness. Some argue that the current system creates an advantage for wealthier regions. Calls for Harmonization: There have been ongoing calls for harmonization of the tax system, especially regarding taxes like inheritance and gift tax, to reduce the disparities between regions. #DecentralizedTaxSystem #SpainTax #AutonomousCommunities #TaxDisparities #RegionalTaxes #PersonalIncomeTax #IRPF #ValueAddedTax #IVA #InheritanceTax #GiftTax #PropertyTaxes #RegionalAutonomy #TaxCompetition #NationalCohesion #TaxHarmonization #SpainEconomy

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[ Offshore Tax ] Tax Insights on Spain’s Special Territories. Spain's decentralized tax system allows certain autonomous regions and territories to offer reduced tax rates compared to the rest of the country. Canary Islands The Canary Islands levy the General Indirect Tax (IGIC) instead of the standard 21% VAT, with IGIC rates ranging from 0% to 7%. The region also has a 4% corporate tax rate in the Canary Islands Special Zone, lower than the 25% rate elsewhere in Spain. Balearic Islands The Balearic Islands can set lower personal income tax rates for residents, with a top marginal rate of 45% compared to up to 70% in other regions. Other Canary Islands The other Canary Islands, such as Tenerife, also benefit from the reduced IGIC and favorable corporate tax environment. These tax advantages aim to support the economic development and competitiveness of Spain's remote island territories. #SpainTax #DecentralizedTaxSystem #AutonomousRegions #CanaryIslands #BalearicIslands #Tenerife #IGIC #VAT #CorporateTax #PersonalIncomeTax #EconomicDevelopment #TaxAdvantages #RegionalTax #TaxCompetitiveness #SpecialTaxZones

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[ Offshore Tax ] Understanding Spanish Tax Residency. With RICKY GUTIERREZ BECKER and Derren Joseph EA #TaxResidency #SpainTax #ResidentStatus #NonResidentTax #SpanishTaxLaw #PIT #NRIT #TaxCriteria #EconomicInterests #AntiAvoidance #DoubleTaxation #DTT #TaxCompliance #TaxRules #ExpatsInSpain #SpanishTaxes #IncomeTax #CapitalGainsTax #TaxRegulations

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