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Practical Manual for Companies 2023.

Concept and taxation

Regulation: Articles 37 and 38 TRLIRNR and Resolution of February 6, 2020, of the General Directorate of Taxes, on the consideration as entities under the income attribution regime to certain entities established abroad ( BOE of February 13 ).

The Non-Resident Income Tax Law considers as entities under the income attribution regime those established abroad whose legal nature is identical to that of income attribution entities established in accordance with Spanish laws.

The basic characteristics that an entity established abroad must meet to be considered in Spain as an entity for attribution of income are the following:

  • That the entity is not a taxpayer of a personal income tax in the State of incorporation.

  • That the income generated by the entity is fiscally attributed to its partners or participants, in accordance with the legislation of its State of incorporation, with the partners or participants being the ones who pay taxes on the same in their personal taxes. This attribution must occur by the mere fact of obtaining the income by the entity, without it being relevant for these purposes whether or not the income has been effectively distributed to the partners or participants.

  • That the income obtained by the entity in the attribution of income and attributed to the partners or participants retains, in accordance with the legislation of its State of incorporation, the nature of the activity or source from which it comes for each partner or participant.

When an entity under the income attribution regime established abroad carries out an economic activity in Spanish territory , and all or part of it is carried out, continuously or habitually, through installations or workplaces of any kind, or acts in it through an agent authorized to contract, in the name and on behalf of the entity (called "entity with presence in Spanish territory" by article 38 of the TRLIRNR), it will be a taxpayer of the aforementioned tax, and must submit an annual self-assessment, using form 200, referring to the part of income obtained in Spain attributable to its non-resident members.

The deadlines for filing said self-assessment will be the same as those indicated in this chapter for the filing of declaration by permanent establishments. However, when any of the events determining the early conclusion of the tax period of permanent establishments regulated in article 20.2 of the TRLIRNR occur, the filing of the declaration must be made within the first twenty calendar days of the months of April, July, October or January, depending on the quarter in which any of the causes that motivate said early conclusion occurs, unless the declaration period had begun prior to the entry into force of Order HAC /495/2024, of May 21, which approves the declaration model for tax periods beginning between January 1 and December 31, 2022. 

These entities are required to appoint a representative , a natural or legal person residing in Spain, to represent them before the tax authorities. The communication to the Tax Administration will be carried out within two months from its appointment , and will be made to the Delegation of the State Tax Administration Agency where the declaration for this tax must be submitted, accompanying said communication with the express acceptance of the representative. However, entities established in another Member State of the European Union or the European Economic Area will not be required to appoint a representative, provided that in the latter case, there are regulations on mutual assistance in the exchange of tax information and collection.