News published in INFORMA 2017

New features introduced in the INFORMA programme during OCTOBER

In cases of payment by property surrender by an entity to a private individual due to a mortgage debt held on the property, the Spanish Corporation Tax Act does not establish any special conditions in this case, and therefore, in accordance with article 10.3 of this Act, no adjustment needs to be made to the taxable profit in relation to the accounting entries required by the operation.

A non-profit entity that is carrying out activities involving organising concerts and ticket sales is involved in economic operations. Therefore, revenues deriving from the rendering of these services shall be subject to and not exempt from Corporation Tax.

Leasing of bareboat vessels is considered an economic activity and, therefore, the leasing entity shall not be considered to be a holding company for the purposes of article 5.2 of the Spanish Corporation Tax Act.

The assignment of licensing of know-how, which is subject to commercial royalties, will be included in the budget of fact set forth in article 23.1 of the Spanish Corporation Tax Act, provided that the corresponding fee is specifically identified in the contract between the parties and all other requirements are met. The budget of fact set forth in article 23.1 of the Spanish Corporation Tax Act shall not include technical royalties paid or fees for marketing and advertising services.

If the asset imbalance is redressed before the end of the fiscal year in which the annual accounts are approved, the subsidiary may form part of the tax group of the parent in the previous tax period.

Interest on tax arrears are tax deductible expenses. However, given their financial nature, they will be subject to the deduction limits established in article 16 of the Spanish Corporation Tax Act.

A newly-created company registered in section 843.2 of the Economic Activities Tax, Technical architecture and urban planning services, and whose partner(s) had already been carrying out professional activities as technical architect(s), are not entitled to apply the 15% tax rate applicable to newly-created entities, but are instead subject to the general rate, since the activity to be undertaken by the newly-created entity has already been carried out by one of the partners.