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Practical Handbook for Companies 2021

Persons obligated to submit the form

Country-by-country reporting shall be required for the following entities only when the net turnover of all persons or entities forming part of the group in the 12 months preceding the beginning of the tax period is at least 750 million euros:

  1. Entities resident in Spanish territory that have the status of parent of a group, and are not at the same time subsidiaries of another entity, whether resident or non-resident.

    According to Article 18.2 of the LIS, a group exists when one entity has or may have control over another or others according to the criteria established in Article 42 of the Commercial Code, irrespective of their residence and the obligation to prepare consolidated annual accounts.

  2. Entities resident in Spanish territory that are directly or indirectly dependent on a non-resident entity in Spanish territory that is not at the same time dependent on another, as well as the permanent establishments in Spanish territory of non-resident entities of the group, provided that any of the following circumstances listed in Article 13.1 of RIS occur:

    1. That there is no country-by-country reporting obligation in terms similar to that provided for in Article 13.1 of the RIS, in respect of the said non-resident entity in its country or territory of tax residence.

    2. That, there is an international agreement within the meaning of Council Directive (EU) 2016/881 of 25 May 2016, amending Directive 2011/16/EU as regards the compulsory automatic exchange of information in the field of taxation, with the country or territory in which the non-resident entity concerned is resident for tax purposes, there is no automatic exchange of information agreement between competent authorities, in respect of such information, with the said country or territory.

    3. If there is an automatic exchange of information agreement with the country or territory in which the non-resident entity is resident for tax purposes, and there has been a systematic breach of the agreement that has been reported by the Spanish tax authorities to the subsidiaries or permanent establishments resident in Spanish territory within the period provided for in this section.

    In the case envisaged in this paragraph 2, the entity resident in Spanish territory or the permanent establishment in Spanish territory obliged to submit the information on a country-by-country basis shall request the information corresponding to the group from the non-resident entity.If the non-resident entity refuses to provide all or part of this information, the entity resident in Spanish territory or the permanent establishment in Spanish territory shall submit the information in its possession and notify the tax authorities of this circumstance.

Remember:

Any entity resident in Spanish territory that forms part of a group obliged to submit the information established herein must inform the tax authorities of the identification and the country or territory of residence of the entity obliged to prepare this information.This communication must be made before the end of the tax period to which the information relates.