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Practical Manual of Companies 2021.

Change of residence to a Member State of the European Union or the European Economic Area

Law 11/2021, of July 9, on measures to prevent and combat tax fraud modifies the regulation of exit taxation, with the aim of transposing the Directive ( EU ) 2016/1164 of the Council, of July 12, 2016, which states that the purpose of said taxation is to guarantee that, when a taxpayer moves his assets or his tax residence outside the tax jurisdiction of the State, said State must tax the economic value of any capital gain created in its territory, even if such capital gain has not yet been realized at the time of departure.

Specifically, with effects for tax periods beginning on or after January 1, 2021 , through the modification introduced in article 19.1 of the LIS by Law 11/2021, of July 9, is replaced in cases of change of residence from an entity to a Member State of the European Union or the European Economic Area that has concluded an agreement with Spain or the European Union on mutual assistance in the collection of tax credits, the possibility that the taxpayer had to defer the payment of the tax debt resulting from the application of the provisions of the first paragraph of the aforementioned article 19.1 of the LIS, until the affected assets are transferred to third parties, due to the possibility of dividing said assets. payment , also at the taxpayer's request, in equal annual fifths .

The exercise of the option will be carried out exclusively in the Corporate Tax return corresponding to the tax period concluded on the occasion of the change of residence, taking into account that the payment of The first fraction must be made within the voluntary declaration period corresponding to said tax period. The expiration and enforceability of the four remaining annual installments will be required together with the late payment interest accrued for each of them, successively after one year from the end of the voluntary declaration period corresponding to the last tax period. Furthermore, the constitution of guarantees will be required when the existence of rational indications that the collection of the debt could be frustrated or seriously hindered is justified.

Finally, the cases in which the division will lose its validity are included, as well as the consequences of said loss.

You can consult the particularities of this fractionation regime in Chapter 6 of this Practical Manual.