Hybrid asymmetries

With effects for tax periods that begin on January 1, 2020 and that have not ended on March 11, 2022, Law 5/2022, of March 9, which modifies Law 27/2014 , of November 27, on Corporate Tax, and the consolidated text of the Non-Resident Income Tax Law, approved by Royal Legislative Decree 5/2004, of March 5, in relation to hybrid asymmetries, introduces a new article 15 bis in the LIS , with the consequent repeal of article 15 j) of the LIS , and adds sections 6 and 7 to article 18 of the Consolidated Text of the Non-Resident Income Tax Law, with the aim of transposing Directive ( EU ) 2016/1164 of Council, of July 12, 2016, in the wording given by Council Directive (EU) 2017/952, of May 29, 2017, regarding the hybrid asymmetries that take place between Spain and other Member States and between Spain and third countries or territories .

In general, with the introduction of this new article 15 bis of the LIS, the aim is to neutralize the fiscal effects generated by the hybrid asymmetries generated between a corporate tax taxpayer located in the territory Spanish and a related entity established in another Member State or in a third country or territory, when they carry out operations that have different tax classification in Spain and in that other country.

You can consult the particularities of hybrid asymmetries in Chapter 5 of this Practical Manual.