Tax
Lawyers’ Professional Secrecy in recent CJEU Jurisprudence
The CJEU has concluded that the reporting obligations established in the DAC are invalid insofar as they affect lawyers’ professional secrecy, as this guarantees the right to privacy and respect for clients’ private lives. However, it clarifies that the exemption from these obligations does not extend to tax advisors who are not lawyers.International Tax Review recognizes Garrigues as Firm of the Year in Transfer Pricing and Indirect Tax
Besides being shortlisted for best firm of the year in all existing categories, Garrigues has been doubly recognized as Firm of the Year in Spain in the categories of Transfer Pricing and Indirect Tax.The Supreme Court definitively resolves which regulation governs the deduction for new fixed assets in the Canary Islands
The Supreme Court has concluded that the regulation governing the deduction for new fixed assets in the Canary Islands is Article 26 of the 1978 Corporate Income Tax Law and not, contrary to what the tax administration and majority jurisprudence have been defending, the 12th Additional Provision of the 1995 Tax Law.Real Estate leasing is an economic activity even when management is outsourced, according to the Directorate General of Taxes
According to the most recent criterion of the Directorate General of Taxes (DGT), real estate leasing can be classified as an economic activity for Corporate Income Tax purposes when managed by specialized experts who have been subcontracted, even if there is not a full-time employee exclusively dedicated to its management, as literally required by law.Spain: Minimum 15% Global Tax: new steps on the most relevant tax measure of recent years for large Groups of Companies
Contrary to the criteria previously maintained by some regional economic-administrative courts and the DGT, it is now concluded that, if contributions to equity are not taken into account when computing the increase in equity that gives the right to apply the incentive or to analyze whether the maintenance requirement is met, the same treatment should be given to capital returns and similar distributions to shareholders.Spain: The General Directorate of Taxes (DGT) clarifies that capital reductions with return of contributions have no impact on the capitalization reserve
En contra del criterio que venían manteniendo algunos tribunales económico-administrativo regionales y la DGT, se concluye ahora que, si las aportaciones a los fondos propios no se tienen en cuenta para computar el incremento de los fondos propios que da derecho a la aplicación del incentivo o para analizar si se cumple el requisito de mantenimiento, se debe dar el mismo tratamiento a las devoluciones de capital y repartos similares a los socios.China: Dealing with the future tax administration on enjoying treaty benefit for preferential tax rate on dividends
Under China's tax laws, non-resident companies generally face a 10% tax on China-sourced dividends, but avoidance of Double Taxation Treaties with countries like Spain or France can reduce this to 5% if specific conditions are met. These companies must self-assess eligibility, submit forms, and maintain documentation, as Chinese authorities rigorously verify treaty benefit claims. If the reduced rate is not applied and excess tax is paid, companies can request refunds within three years.