## [Tax Newsletter - July, August and September 2023](/en_GB/new/tax-newsletter-july-august-and-september-2023) # Tax Newsletter - July, August and September 2023 Spain - 10 / 10 / 2023 - - [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/tax-newsletter-july-august-and-september-2023) - []() - []() [Download Newsletter ![Download](/sites/default/files/inline-images/flecha-abajo.png)](/sites/default/files/noticias/files/tax_newsletter_july_august_september_2023.pdf) Previous Next ![](/sites/default/files/noticias/img/newsletter_tributario_julio_septiembre_2023.jpg) ****The EU General Court annuls the Third Decision of the European Commission on financial goodwill**** According to the court, the principle of legitimate expectation, depending on the date of acquisition, must also apply to indirect acquisitions. See the summary in our [publication dated September 27, 2023](https://www.garrigues.com/es_ES/noticia/tribunal-general-ue-anula-tercera-decision-comision-europea-fondo-comercio-financiero). ****When determining the income of a permanent establishment, only management and general administrative expenses related to its activity can be allocated to it**** The Supreme Court rejected that, in determining the income of permanent establishments (and therefore, the income that will be exempt in Spain and the expenses that will be deductible at the head office), management and general administration expenses must be allocated to them under proportionality rules not by taking into account the extent to which those expenses are related to its activity. ****Severance paid to senior executives who hold office as directors can benefit from the treatment provided for multi-year income**** According to the Supreme Court, under the relationship absorption theory, the severance pay for executives with contracts for services may benefit from the 30% reduction provided for income generated over more than two years. The court recalled that the fact of holding a contract for services cannot be used to deny workers’ rights. ****The principle of proportionality established in EU Law must be observed in penalty proceedings**** The Supreme Court has set aside the 10% penalty in respect of not reporting on a VAT self-assessment amounts that should have been charged under the reverse-charge mechanism, based on the principle of proportionality under EU law. This was analyzed in our [blog dated September 12](https://www.expansion.com/blogs/garrigues/2023/09/12/el-tribunal-supremo-concluye-que-el.html). ****The voiding of assessments issued against the company entails the voiding of assessments issued to its shareholders**** TEAC has concluded in two decisions that adjustments for related-party transactions between shareholder and company must observe the bilaterality principle. In other words, if the courts set aside the assessment issued for the company, they must also set aside the assessment issued for the shareholder. ****The deferment of tax liability on underlying capital gains is not a tax advantage for the purpose of applying the neutrality regime**** The DGT has confirmed that, if the neutrality regime is questioned for a transaction, only the sought tax advantage may be adjusted, which does not include the deferral of tax liability inherent to the regime itself. For further details on this month’s judgments, decisions, resolutions and legislation, [**SEE THE WHOLE NEWSLETTER HERE**](https://www.garrigues.com/sites/default/files/noticias/files/tax_newsletter_july_august_september_2023.pdf)**.** [Tax](/en_GB/tags/tax), [Spain](/en_GB/tags/spain) ### 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]() - +34 91 514 52 00 [Madrid](https://www.garrigues.com/en_GB/office/madrid) [Find more professionals](../team) ### Related services - [Tax ](/en_GB/services/tax) - ## Find a publication - [Administrative and Constitutional Law](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1422) - [Agribusiness and Food](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1417) - [Automotive](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1419) - [Banking and Finance](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1443) - [Corporate and M&A](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1441) - [Corporate Governance and Sustainable Development](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A12823) - [Criminal Law and Internal Investigations](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1434) - [Data Economy, Privacy and Cybersecurity](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A10913) - [Dispute Resolution: Litigation and Arbitration](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1412) - [Energy](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A10916) - [EU and Antitrust Law](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1416) - [Family Business](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1413) - [Fashion Law](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1435) - [Financial Regulation](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A10915) - [G-advisory](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A12821) - [Human Capital Services](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1431) - [Infrastructure](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A10914) - [Insurance](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1438) - [Intellectual Property](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1421) - [Labor and Employment](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1424) - [Life Sciences and Healthcare](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1429) - [Media and Entertainment](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1433) - [Planning, Zoning and Environment](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1444) - [Private Equity](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1439) - [Real Estate](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A10927) - [Restructuring and Insolvency](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1420) - [Securities Markets](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1442) - [Sports](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1430) - [Startups & Open innovation](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1426) - [Sustainability](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A10921) - [Tax](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1425) - [Technology, Communications and Digital](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1436) - [Tourism and Hotels](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1432) - [Transport, Logistics and Shipping](/en_GB/markdownify/node/13211?f%5B0%5D=service%3A1428) Facet Services detail - [Publications](/en_GB/markdownify/node/13211?f%5B0%5D=publication_type%3A794) - [Newsletters](/en_GB/markdownify/node/13211?f%5B0%5D=publication_type%3A107) - [Garrigues collection](/en_GB/markdownify/node/13211?f%5B0%5D=publication_type%3A101) - [Laws: amendments at a glance](/en_GB/markdownify/node/13211?f%5B0%5D=publication_type%3A104) - [News](/en_GB/markdownify/node/13211?f%5B0%5D=publication_type%3A105) Facet Publication type detail Min Max ## News search engine