New regulations for 2014

Sentence of the 27th of May 2014, of the Third Chamber of the Supreme Court

A Sentence of the 27th of May 2014, of the Third Chamber of the Supreme Court, has been published in the Official State Gazette with date 30 of July 2014, and thereby annuls:

• the last section of article 21.2 of Royal Decree 1777/2004, of 30 July, for which the Corporation Tax Regulation (hereinafter RIS) is approved, modified by Royal Decree 1793/2008, of 3 November: "If both review methods are overlapped due to the lack of agreement between the different associated parties or entities, the appeal or claim submitted first will be carried out and the second will be declared inadmissible or subsequent."
• Article 21 bis 2. a) second paragraph of the RIS: "The part of the difference that does not correspond to the percentage of participation in the entity, for the entity it will have the consideration of payment from the equity, and the partner or shareholder perceiver of an entity of membership, shareholder, partner or participant in accordance with the provisions of Article 25.1.d) of Law 35/2006, of 28 November, on the Personal Income Tax and partially modifying the laws on Corporation Tax, on the non-Resident Income Tax and on the Wealth Tax."
• Article 21 bis 2. b) second paragraph of the RIS: "The part of the difference that does not correspond to the percentage of participation in the entity, will have the consideration of income for the entity, and bequest for the partner or shareholder. When they are taxpayers of the Non-resident Income Tax without permanent establishment, the income will be considered as capital gains according to what is established in the article 13.1.i).4.º of the rewritten text of the Law on the Non-resident Income Tax, approved by Legislative Royal Decree 5/2004, of 5 March."