## [Tax Newsletter - May 2019](/en_GB/new/tax-newsletter-may-2019) # Tax Newsletter - May 2019 Spain - 06 / 11 / 2019 - - [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019) - []() - []() [DOWNLOAD DOCUMENT ![Download](/sites/default/files/inline-images/flecha-abajo.png)](/sites/default/files/noticias/files/tax_newsletter_may_2019.pdf) Previous Next ![](/sites/default/files/noticias/img/newsletter_tributario_mayo_2019_2_3.jpg) ## [**Awarded judicial costs are only taxable over and above the cost of the fees of a lawyer and court procedural representative**](https://www.garrigues.com/en_GB/new/awarded-judicial-costs-are-only-taxable-over-and-above-cost-fees-lawyer-and-court-procedural) A decision by Murcia Regional Economic Administrative Tribunal (TEAR) concluded that the capital gain obtained from collecting the legal costs received by the successful party in a lawsuit must be calculated by reducing the received indemnification by the fee expenses paid. [****KEEP READING****](https://www.garrigues.com/en_GB/new/awarded-judicial-costs-are-only-taxable-over-and-above-cost-fees-lawyer-and-court-procedural) ### [**Judgments**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019-judgments) - **Corporate income tax.-** The contribution of a property encumbered with a mortgage cannot be taxed under the neutral regime on the portion of the debt that did not fund the acquisition - **Inheritance and gift tax.-** The main source of income may, in exceptional circumstances, be a source from the year before death - **Administrative procedure.-** A change of interpretation cannot have an adverse effect on the taxpayer - **Administrative procedure.-** Rendering general provisions null and void does not automatically render null and void decisions based on them - **Administrative procedure.-** A notification is valid if it is proved that the taxpayer was aware of its content - **Management procedure.-** A provisional assessment decided in a procedure initiated through a return has precluding effects - **Review procedure.-** A request for a preliminary ruling is needed before deciding that domestic law is not applicable - **Penalty procedure.-** Liability for collaborating with a tax infringement cannot be shifted and a serious penalty imposed for the same facts [**VIEW MORE**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019-judgments) ### [**Decisions**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019-decisions) - **Corporate income tax.-** Directors’ compensation should have been set out with certainty in the bylaws (at least under the legislation before the current Corporate Income Tax Law) - **VAT.-** Effective use or enjoyment of a service must be evidenced to determine whether it is subject to VAT - **VAT/Transfer and stamp tax.-** The definitions of “independent business unit”, for VAT purposes and of “whole set of business assets, rights, and liabilities”, for transfer and stamp tax purposes, must receive the same treatment - **Administrative procedure.-** It is correct to notify the taxpayer even if the taxpayer has appointed a representative to receive notifications - **Audit procedure.-** The time period for rendering a second assessment decision runs from when the auditors receive the decision on reversion of the procedure - **Collection procedure.-** The time period for rendering a new decision shifting liability after a previous decision has been set aside is six months - **Penalty procedure.-** Not reporting income not mentioned in the information provided by the tax authorities is allowed to be subject to a penalty [**VIEW MORE**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019-decisions) ### [**Rulings**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019-rulings) - **Corporate income tax.-** Partially exempt entities may use the capitalization reserve - **Corporate income tax.-** Indemnification payments from insurers to cover penalties are taxable - **Personal income tax.-** Where the same discounts are offered to own employees and employees of other companies, there is no income in kind - **Inheritance and gift tax.-** An inbound expatriate receiving a gift may apply the legislation of the autonomous community where they reside - **Inheritance and gift tax.-** Disclaiming an inheritance after the tax has become statute-barred implies there is a gift - **VAT.-** The DGT examines the VAT implications of flexible compensation plans [**VIEW MORE**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019-rulings) ### [**Legislation**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019-legislation) - Corporate income tax return forms for fiscal year 2018 have been published - Reductions for 2018 of given indexes for the objective assessment method for personal income tax have been approved - New tax stamps for cigarettes and loose tobacco - The rules on completing the electronic internal administrative document and form 525 have been amended [****VIEW MORE****](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2019-legislation) [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/7167?f%5B0%5D=service%3A1422) - [Agribusiness and Food](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1417) - [Automotive](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1419) - [Banking and Finance](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1443) - [Corporate and M&A](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1441) - [Corporate Governance and Sustainable Development](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A12823) - [Criminal Law and Internal Investigations](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1434) - [Data Economy, Privacy and Cybersecurity](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A10913) - [Dispute Resolution: Litigation and Arbitration](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1412) - [Energy](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A10916) - [EU and Antitrust Law](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1416) - [Family Business](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1413) - [Fashion Law](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1435) - [Financial Regulation](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A10915) - [G-advisory](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A12821) - [Human Capital Services](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1431) - [Infrastructure](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A10914) - [Insurance](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1438) - [Intellectual Property](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1421) - [Labor and Employment](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1424) - [Life Sciences and Healthcare](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1429) - [Media and Entertainment](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1433) - [Planning, Zoning and Environment](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1444) - [Private Equity](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1439) - [Real Estate](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A10927) - [Restructuring and Insolvency](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1420) - [Securities Markets](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1442) - [Sports](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1430) - [Startups & Open innovation](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1426) - [Sustainability](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A10921) - [Tax](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1425) - [Technology, Communications and Digital](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1436) - [Tourism and Hotels](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1432) - [Transport, Logistics and Shipping](/en_GB/markdownify/node/7167?f%5B0%5D=service%3A1428) Facet Services detail - [Publications](/en_GB/markdownify/node/7167?f%5B0%5D=publication_type%3A794) - [Newsletters](/en_GB/markdownify/node/7167?f%5B0%5D=publication_type%3A107) - [Garrigues collection](/en_GB/markdownify/node/7167?f%5B0%5D=publication_type%3A101) - [Laws: amendments at a glance](/en_GB/markdownify/node/7167?f%5B0%5D=publication_type%3A104) - [News](/en_GB/markdownify/node/7167?f%5B0%5D=publication_type%3A105) Facet Publication type detail Min Max ## News search engine