Tax
Spain - The taxpayer's protected digital domicile: a missing legal framework
The growing digitalisation of taxpayers' personal and professional activity raises new challenges for the protection of privacy and calls for the recognition and regulation of a genuine “protected digital domicile”, distinct from the physical domicile and from the fiscal domicile.Spain: Regularisation under the tax neutrality regime in Corporate Income Tax only allows the elimination of the abusive tax advantage, including under the TRLIS regime
In a novel judgment, the Supreme Court rejects that, under the former consolidated text of the Corporate Income Tax Act (TRLIS) preceding the current tax law, the deferral inherent in the neutrality regime could be rejected on the basis that the relevant transaction had been carried out exclusively to obtain a tax advantage.The Supreme Court will rule on the administrative silence regime applicable to requests for declarations of special municipal interest or utility, which are necessary for the application of IBI tax rebates
The conclusion of the court could have implications for other municipal taxes, in relation to which the regulations establish similar rebates.Spain: Transfer pricing rules cannot be used to deny the deduction of labor costs related to a restructuring
According to the court, these rules specifically address the pricing of related-party transactions and therefore cannot be relied on to conclude that expenses arising from a restructuring decision made by the group are not deductible if those expenses stem from relationships with third parties, such as employees who are laid off and receive severance pay.OECD opens public consultation process on its intra-group services transfer pricing guidelines
The proposed changes are a sign of the adoption of a more flexible approach to the analysis of these intra-group services, based mainly on reasonably foreseeable profits, which could also avoid automatism in tax regularizations.The growing importance of tax residence in our jurisprudence
In recent years, the courts have issued numerous and important resolutions and judgments that we review below, which have been shaping an abundant doctrine on the concepts of center of economic interests, center of vital interests or sporadic absences, or on the value of residence certificates.