In the tax information and on the draft return that the finance authority will make available to taxpayers, greater details will be provided of income obtained from rental property, including a calculation of depreciation expense. The Spanish finance authority, calculates the depreciation expense for inherited or gifted properties only on the cost of investments and improvements made on the property and the expenses and taxes associated with its acquisition.
Following the transposition of Council Directive (EU) 2018/822 of 25 May 2018 (DAC 6) by Law 10/2020, of December 29, 2020, and its implementing regulations adopted in Royal Decree 243/2021, of April 6, 2021, the forms for reports and communications have now been approved.
Law 10/2020 of December 29, 2020 published on December 30, 2020 (see our alert on this law), transposed into Spanish law Council Directive (EU) No 822/2018 of 25 May 2018, on the mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (DAC 6), through two additional provisions in the General Taxation Law (LGT).
The Portuguese Government approved a new review to the deferral scheme foreseen for tax compliance obligations by Dispatch no. 90/2021-XXII, 16 March, which makes the tax calendar more flexible concerning the VAT payment due regarding January 2021 by taxpayers subject to the monthly regime, as well as the delivery of IRS or IRC withholding taxes due in February.
Garrigues has boosted the tax department in Portugal by taking on Miguel Pimentel to coordinate the Portuguese international taxation practice. Pimentel joins partners Pedro Miguel Braz, department director and coordinator of the Portuguese tax litigation practice, and Fernando Castro Silva, in charge of the tax advisory practice, on the task of leading a team with more than thirty practitioners. Garrigues tax department has in this way strengthened its positioning in the Iberian market: today it was recognized for another year running as Tier 1 in the Chambers Europe directory for both Portugal and Spain. 
The Corporate Income Tax Law states (article 15.f) that expenses incurred to carry out activities that are against the law are not deductible. The Supreme Court concluded in a judgment delivered on February 8, 2021 that this concept should be construed narrowly.