ATT ASSESSORS Insurance and services Balaguer Lleida

New regulation of the Imprint on Societies -Jul 2015-


Law 27/2014, of November 27, on Corporate Income Tax, has established a new Regulation of this tax, a basic pillar of direct taxation in conjunction with Income Tax of Individuals.

Although this new regulation has maintained the structure of the tax that already existed since 1996, there have been significant changes in the tax treatment of certain income that is the subject of integration in the tax base.

The approval of this new law requires a thorough review of the regulatory norm that necessarily accompanies the Corporate Tax, so that the Regulation approved by Royal Decree 634/2015, July 10, Approves the Tax Regulation Companies has the dual function of adaptation to new parameters established by Law 27/2014 and organization of the regulations.

This Regulation consists of 69 articles divided into four titles, one additional provision, five transitional provisions and the final provision.

Title I is allocated to the taxable base:

· Chapter I, establishes the procedure to follow for cases in which the taxpayer uses a temporary imputation method in the accounting area other than the accrual basis.

· Chapter II, contains an update on the regulatory development applicable to amortization (note of the flexibility contained in the possibility of presenting the special amortization plans at any time within the repayment period of the asset item while That until now this possibility has been restricted three months after the start of the repayment period).

• Chapter III, contains special rules for the tax deduction of credit risk coverage in financial institutions, in the same terms as established in the previous regulations of application.

· Chapter IV, regulates the plans of expenses corresponding to the environmental actions and the plans of expenses and investments of the communal communities of hills in common hand.

· Chapter V, includes the main novelty of this Regulation, incorporating substantial modifications in relation to entities and related operations. The country-by-country information is introduced as an instrument that allows evaluating the risks in the transfer pricing policy of a commercial group, without in any case this instrument could serve as a basis for the Tax Administration to make price adjustments . This information will be required from 2016, under the terms and conditions that have been set in the OECD.

The specific documentation of the related transactions referred to in the Tax Law is modified, completing, on the one hand, the necessary simplification of this documentation for entities with a net turnover of less than 45 million d Euros and the adaptation, on the other hand, to the content of the documentation mentioned in the OECD.

• Chapter VI establishes the rules for the determination of the comparability analysis required in the specific documentation, and the verification procedure of the linked operations is updated.

· Chapters VII, IX and X regulate the procedures for obtaining prior agreements, whether they are the valuation of the related operations, valuation of expenses corresponding to scientific research projects and technological innovation or of qualification and valuation Of incomes from certain intangible assets.

· Chapter VIII, contains the documentation that must accompany operations carried out with persons or entities not linked residing in tax havens.

Title II contains the limits to the aid system for audiovisual works established in Regulation (EU) no. 651/2014 of the Commission, of June 17.

The title III is devoted to the rules of application of certain special regimes, with 7 chapters destined, respectively, to groups of economic interest and temporary unions of companies, to fiscal consolidation, to restructuring operations, to certain contracts of Financial leasing, entities holding foreign securities, shipping companies and political parties.

Title IV is intended for the management of the Tax:

· Chapter I, contains the index of entities, the return of the Tax and the obligations of collaboration with external entities in the presentation and management of declarations.

· Chapter II, contains the obligations to withhold and enter into account.

· Chapter III, which regulates the procedure for the compensation and payment of deferred tax assets, when their conversion to credits required by the Public Treasury is produced.

All of this is supplemented by an additional provision, five transitional provisions and the final provision and an index of contents has been incorporated to facilitate the use of the norm.

This Royal Decree will enter into force on the "next day of publication in the BOE, that is, in effect from July 12, 2015.

The Corporate Income Tax Regulation will apply to tax periods initiated from January 1, 2015, except for Article 14, which will enter into force in tax periods beginning on January 1, 2016.

In the case of persons or entities with a net amount of business volume, defined in the terms established in article 101 of Law 27/2014, of November 27, on Corporate Income Tax, is equal to or greater than € 45 million, the information and specific documentation established by articles 15 and 16 of the Regulation shall be applied for tax periods beginning on or after January 1, 2016. In the tax periods beginning in 2015, these persons or Entities will be subject to the documentation obligations in articles 18, 19 and 20 of the Corporate Income Regulation, approved by Royal Decree 1777/2004 of July 30.