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Skip information indexFor tax periods starting from 1 January 2018
The developments that specifically affect the settlement of Corporate Tax in 2018 as a consequence of the regulatory modifications in force in said year are listed below:
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For tax periods starting on November 10, 2018, a new letter m) is added to article 15 of Law 27/2014, of November 27, on Corporate Tax , by the first Final Provision of Royal Decree-Law 17/2018, of November 8. A new case of non-tax-deductible expense is regulated by establishing that the tax debt for the Tax on Property Transfers and Documented Legal Acts, Documented Legal Acts modality, documents will not be considered a tax-deductible expense. notarial deeds, in the case of loan deeds with mortgage guarantee in which the taxpayer is a lender.
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With effect for tax periods beginning on or after November 7, 2018 the fourth Additional Provision, deduction for investments in the Canary Islands of Law 19/1994 is modified , of July 6 , raising the joint limit on the quota on the islands of La Palma, La Gomera and El Hierro so that the minimum limit of 80% will be increased to 100% and the minimum differential to 35 points goes to 45 percentage points when the community regulations on state aid allow it and they involve investments contemplated in Law 2/2016, of September 27 and other laws on measures for the organization of the economic activity of these islands.
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With effect for tax periods beginning on or after November 7, 2018 the fourteenth Additional Provision is modified, limits on deductions for investments in film productions, series audiovisual and live shows of performing and musical arts performed in the Canary Islands , of Law 19/1994, of July 6, incorporating the following new features:
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An increase in the amount of deductions for investments in Spanish feature films, audiovisual fiction series', animations, or documentaries, as referred to in Section 1 of Article 36 of Act 27/2014 of 27 November, on Corporation Tax, which will increase from 4.5 to 5.4 million euros when relating to productions made in the Canary Islands.
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There will also be an increase from 4.5 to 5.4 million euros for the amount of deductions for expenses incurred in the Canary Islands for foreign feature film productions, or audiovisual works as referred to in section 2 of the article 36 of the Act 27/2014.
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The minimum sum of expenditure indicated in Section 2 of Article 36 of Act 27/2014, in cases of carrying out post-production or animation services for a foreign production, will be fixed at 200,000 euros for expenditure incurred in the Canary Islands.
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Finally, the minimum sum of deductions for expenditure incurred in production and live performing arts and musical events as referred to in Section 3 of Article 36 of Act 27/2014 is fixed at 900,000 euros for expenditure incurred in the Canary Islands.
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In addition, as a supplement to the regime of deductions for incentives and stimuli for business investment in the Act on Corporation Tax applicable in the Canary Islands, for tax periods beginning on or after 7 November 2018 a new Article 94 bis, in Act 20/1991, of 7 June, through which those companies contracting staff to work in the Canary Islands will have the right to the fiscal benefits due to creating employment, as established by fiscal regulations in accordance with the requirements established in them, is added, increasing them by 30 per cent. This amendment includes the application of deductions for job creation in Article 37 of Act 27/2014 and the increase that did not previously exist of 30 per cent on sums deductible both on deductions named in Article 37 and 38 on deductions for the creation of employment for workers with disabilities of the aforementioned Act 27/2014.
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With effect for tax periods beginning on or after January 1, 2018 a new Additional Provision fourteenth bis Corporate Tax is added. Application of the fiscal consolidation regime to companies with branches in the Canary Islands Special Zone in Act 19/1994 of 6 July, establishing that the application of the special tax rate stated in Article 43 of this Act in the case of in branches in the Canary Islands Special Zone of companies with fiscal residence in Spain will not impede these companies from forming a fiscal group employing the fiscal consolidation regime stipulated in Chapter VI of Title VII Act 27/2014 of 27 November, on Corporation Tax. Notwithstanding the above, the part of the gross tax rate of the company forming part of a fiscal group, that is attributable to the Special Canary Islands Zone branch, will not be included in the company's individual gross tax base for the purpose of determining the fiscal group's gross tax base, and will be determined separately in legally-determined terms.
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With effects for the tax periods that begin on or after November 7, 2018 section 1 of the fourteenth Additional Provision of Law 27/2014, on Corporate Tax, is modified, establishing that in the case of Shipping Companies to which the bonus established in article 76, sections 1 and 2, of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, is applicable, it will be taken as a positive result that corresponding exclusively to non-subsidized income. And that in the case of shipping companies that pay taxes under the Special Regime based on tonnage established in Chapter XVI of Act 27/2014 of 27 November, on Corporation Tax, instalment payments will be calculated on the amount of gross tax base obtained under that established by Article 114.1 of this Act (containing the special rule on setting the gross tax base according to each ship's net registered tonnage).
In both cases this compensates for the adverse impact of determining instalment payments introduced by the minimum instalment payment rule without considering that these companies can apply, respectively, both a subsidy of 90 per cent of the income deriving from operations of ships registered in the Special Registry, or determining their gross tax base according to the regulations cited in the Special Regime based on Tonnage.
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Main new features introduced by Royal Decree 1074/2017 of December 29 in the Corporate Tax Regulation, approved by Royal Decree 634/2015, of July 10:
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Modification of the regulation of information and documentation on related entities and operations . With effect for tax periods beginning on or after January 1, 2016, section 1 of article 13 of Royal Decree 634/2015, of July 10, is modified, clarifying the subjective scope of the entities that must provide information and documentation on related entities and operations. In this regard, it clarifies the inclusion of permanent establishments in Spanish territory of non-resident group entities obliged to provide documentation as per article 14 of the Regulations. The case set forth in the previous letter a) of section 1 of article 13 regarding reporting obligations is removed.
Furthermore, the following exception is included -there shall be no reporting obligation for subsidiaries or permanent establishments in Spanish territory when the multinational group has designated a group subsidiary resident in a member State of the European Union to present this information, or when the information has been reported in its territory of tax residence by another non-resident entity appointed by the parent company of the group as representative for these reporting purposes. In the case of an appointed entity with tax residence in a territory outside the European Union, the conditions set forth in paragraph 2, section II, annex III of Council Directive 2011/16/EU of 15 February 2011 must be complied with in relation to administrative cooperation in the tax area, which repeals Directive 77/799/CEE.
The following clarification is added: in the event that there are several subsidiaries resident in Spanish territory, one of these shall be appointed by the multinational group to report the information, and shall be solely obliged to do so.
Lastly, it is added that in the event that the non-resident entity were to refuse to provide all or part of the required information corresponding to the group to the entity resident in Spanish territory or the permanent establishment registered there, the latter shall report the information available to them and notify the Tax Agency of this circumstance.
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Modification of information regulation country by country . With effects for the tax periods that begin on or after January 1, 2016, letter e) of section 2 of article 14 of Royal Decree 634/2015 is modified, incorporating among the information to be provided, in addition to the Amount of the figure capital, other undistributed results on the date of conclusion of the tax period.
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Modification of the regulation of exceptions to the obligation to withhold and deposit into account . With effect for the tax periods beginning on or after January 1, 2018, letters u), y) and z) of article 61 of Royal Decree 634/2015 are modified, excepting the obligation to withhold with respect to the amounts paid by pension funds opened as a result of the reimbursement or mobilization of shares of investor pension funds or investor pension plans, in accordance with the provisions of the consolidated text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29, and in its development rules, as well as in the income derived from the reimbursement or transfer of participations or shares in the funds and companies regulated by article 79 of the Regulations for the development of the Law 35/2003. Finally, an exemption is established from the obligation to perform withholdings of remunerations and compensation for economic rights received by central counterparties on transactions involving securities loans carried out in accordance with section 2 of article 82 of Royal Decree 878/2015 of 2 October, on compensation, settlement and registration of marketable securities represented by book entries, on the legal regime of central securities depositaries and central counterparties and on the transparency requirements of securities issuers admitted for trading on an official secondary market. Similarly, central counterparties are also exempt from the obligation to perform withholdings of remunerations and compensation for economic rights paid as a result of the securities loans referred to in the previous paragraph. These conditions are without prejudice to the requirements of the said earnings to the withholdings applicable in accordance with the corresponding regulatory standards of the personal income tax of the beneficiary of these earnings. These withholdings shall, where applicable, be made by the participating entity brokering the payment thereto, for the purposes of which they will not be understood to be undertaking a simple payment brokerage.
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Modification of the regulation of the subjects obliged to withhold or make deposits on account . With effect for the tax periods that begin on or after January 1, 2018, section 8 of article 62 of Royal Decree 634/2015 is modified, establishing that in operations carried out in Spain by insurance entities domiciled in another Member State of the Area European Economic Commission that operate in Spain under the regime of free provision of services, the insurance entity will be obliged to make a withholding or deposit on account. *Adaptation to the Law of 27/2014, on Corporate Tax. With effect for tax periods beginning on or after January 1, 2018, various sections of article 69 of Royal Decree 634/2015 are modified to adapt them to the Corporate Tax Law and specifically establishes regarding the compensation and credit procedure. of credits payable to the Public Treasury than the deferred tax assets corresponding to provisions for impairment of credits or other assets derived from the possible insolvencies of debtors not linked to the taxpayer, not owed to public law entities and whose deductibility is not occurs by application of the provisions of article 13.1.a) of the Tax Law, as well as those derived from sections 1 and 2 of article 14 of the Tax Law, corresponding to endowments or contributions to social security systems and , if applicable, early retirement, may become a claim payable to the Tax Administration, in the terms established in sections 1 and 2 of article 130 of the Tax Law.
- Order HAC/941/2018, of September 5, which modifies Order HFP/227/2017, of March 13, which approves model 202 to make installment payments on account of the Corporate Tax and the Income Tax of non-residents, incorporated in the sole Additional Provision the possibility of expressing the will to allocate 0.7 percent of the full quota of the Corporate Tax to subsidize activities of general interest considered to be of social interest, provided for in the one hundred and third Additional Provision of Law 6/2018, of July 3. This option may be exercised by those taxpayers whose tax period ends after the entry into force of the aforementioned Law 6/2018, of July 3, by marking in form 200 the box with number 00073 “Other options” within the section “ Other characters” on the first page of said model 200, or in model 220, box 069 “Other options” included in the “Other characters” section of the first page. »
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Order HAC/554/2019, of April 26, approving models 200 and 220 for 2018 , maintains these boxes by changing their literal: “Option of 0.7% of the full quota for social purposes (DA 103 Law 6/2018)”.
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