## [Tax Newsletter - July 2018](/en_GB/new/tax-newsletter-july-2018) # Tax Newsletter - July 2018 Spain - 07 / 30 / 2018 - - [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/tax-newsletter-july-2018) - []() - []() [DOWNLOAD TAX NEWSLETTER ![Download](/sites/default/files/inline-images/flecha-abajo.png)](/sites/default/files/noticias/files/tax_newsletter_july_2018.pdf) Previous Next ![](/sites/default/files/noticias/img/newsletter_tributario_julio_2018_3.jpg) ## **Supreme Court rules that the Spanish consolidated tax group regime was contrary to EU law when it did not allow sister companies to be consolidated** Before the current Corporate Income Tax Law (Law 27/2014), Spanish legislation only allowed consolidation where the parent company was Spanish and this parent company’s interest in the controlled companies (also Spanish) was owned directly or through other Spanish companies. In other words, neither horizontal consolidation (“among sister companies”) nor indirect consolidation were allowed. [**KEEP READING**](http://www.garrigues.com/latam/en_GB/new/supreme-court-rules-spanish-consolidated-tax-group-regime-was-contrary-eu-law-when-it-did-not) ### [**Judgments**](http://www.garrigues.com/latam/en_GB/new/tax-newsletter-july-2018-judgments) - ****Corporate income tax**.-** A company should not be barred from using losses of permanent establishments in other states, when they can no longer be used by the permanent establishments themselves - ****Nonresident income tax**.-** Dividends paid to nonresident collective investment vehicles may not be subject to withholding tax if the same withholding tax does not apply to resident vehicles - **VAT.-** The rental of a property by a holding company to its subsidiary is an economic activity giving entitlement to the deduction of VAT - ****Tax procedure**.-** A person held liable for tax has the right to apply for an expert appraisal made at the taxpayer’s instance [**VIEW MORE**](http://www.garrigues.com/latam/en_GB/new/tax-newsletter-july-2018-judgments) ### [**Decisions**](http://www.garrigues.com/latam/en_GB/new/tax-newsletter-july-2018-decisions) - ****Personal income tax**.-** In the dissolution of a condominium there is a capital gain or loss if the allocations are not made in proportion to the share in ownership - ****Transfer and stamp tax**.-** The contribution of properties mortgaged to secure debts with third parties is subject to tax as a transfer for valuable consideration, even if there is no subrogation in respect of the debts - ****Management procedure**.-** A request for a report on an audited reported value does not stop the clock on the statute of limitations period if the taxpayer is not informed - ****Collection procedure**.-** A person required to fulfill an attachment order is not allowed to decide to stop paying without authorization from the tax authorities [**VIEW MORE**](http://www.garrigues.com/latam/en_GB/new/tax-newsletter-july-2018-decisions) ### [**Rulings**](http://www.garrigues.com/latam/en_GB/new/tax-newsletter-july-2018-rulings) - ****Corporate income tax**.-** The capitalization reserve for tax groups is not calculated simply by aggregating the equity of the companies in the group - ****Corporate income tax**.-** Two part-time employees do not equal one full-time employee - ****Personal income tax**.-** Leased student housing properties are allowed to benefit from the reduction to rent [**VIEW MORE**](http://www.garrigues.com/latam/en_GB/new/tax-newsletter-july-2018-rulings) ### [**Legislation of interest**](http://www.garrigues.com/latam/en_GB/new/tax-newsletter-july-2018-legislation-interest) - The Budget Law for 2018 has been published and various orders have been amended to adapt them to the law - Publication of the annual equivalent rate for the third calendar quarter of 2018, for the purpose of characterizing certain financial assets for tax purposes [**VIEW MORE**](http://www.garrigues.com/latam/en_GB/new/tax-newsletter-july-2018-legislation-interest) [Tax](/en_GB/tags/tax) ### Contact ![Eduardo Abad Valdenebro - Garrigues](/sites/default/files/styles/medium/public/team/photo/Eduardo_Abad_Valdenebro_en_20260611.jpg?itok=XJmuqiG8) [Eduardo Abad](/en_GB/team/eduardo-abad-valdenebro) ![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact]() - 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