News published in INFORMA 2017

New features introduced in the INFORMA programme in JANUARY

The equalisation reserve must be funded out of the profits of the year in which the reduction in the tax base is made. En caso de no poderse dotar esta reserva, la minoración estará condicionada a que la misma se dote con cargo a los primeros resultados positivos de ejercicios siguientes respecto de los que resulte posible realizar esa dotación.The General Meeting shall decide on the distribution of results for the year based on the approved balance sheet. En consecuencia, será en el momento determinado por la norma mercantil para la aplicación del resultado del ejercicio cuando deberá dotarse la reserva de nivelación.

The period of uninterrupted holding of the shareholding for the exemption provided for in Article 21 of Law 27/2014 to be applicable shall be the year prior to the day on which the profit to be distributed becomes payable or, failing that, it must be held thereafter for the time necessary to complete that period.

The expenses incurred by a company on account of compensation paid to workers shall be tax deductible provided they meet the requirements in terms of accounting registration, accrual and documentary proof, and to the extent that they are not deemed to be a non-deductible expense in accordance with article 15 of the Spanish Corporation Tax Act.

The management of joint expenses by a civil partnership of professionals is not excluded from the commercial sphere and, with effect for the tax periods commencing from 1 January 2016, shall be deemed tax payable for Corporation Tax purposes.

An entity incorporated in accordance with the provisions of Law 35/2011 on shared ownership of agricultural holdings without legal personality will continue to be taxed after 1 January 2016 under the special income attribution system established in section two of title X of the LIRPF, regardless of the method used to determine the income from the activity, and will not be taxed for corporate income tax purposes.

In the event of receiving compensation without the judgment giving rise to it having become final, two situations must be distinguished: if a deposit is made in a restricted account of the judicial body, this circumstance would not give rise to the recognition of any asset and, therefore, no income would be generated to be included in the taxable base of the tax.In this circumstance, no provision could be made.On the other hand, if the company receives the amount agreed in the court ruling, the requirements for recognising the asset and the corresponding income would be met, which would have to be included in the taxable income for corporate income tax purposes.In this case, provisions made as a result of litigation in progress shall be considered tax deductible for Corporation Tax purposes in the period in which the provisions are made.

The costs of professional fees paid abroad, whether agreed or under contract, for each of the works, jobs or supplies for which they are contracted, and for which the appropriate invoice is issued, will be deductible if the requirements in terms of accounting registration, accrual and documentary justification are met, and they must be invoiced as services rendered by the aforementioned companies or professionals.

If the investments or expenses are not made within the specified period, the part of the tax liability corresponding to the part of the profit deemed not to have been used, together with the corresponding late payment interest, must be paid together with the tax liability for the tax period corresponding to the fourth year following the year in which the taxable base was reduced.

Income from the transfer of the use of technology is not eligible for the reduction established in Article 23 LIS, insofar as such income does not derive from the autonomous transfer of the information that constitutes the basic ideas and principles of the computer programme (software) transferred, but from software which, by means of artificial intelligence, determines the application of a series of scientific procedures that guide the user in determining theoretically the mechanisms of action of new products.

Income from visa activities carried out by Professional Associations are not exempt from Corporation Tax since this activity constitutes an economic operation.

The increase in shareholders' equity calculated in accordance with article 25 of the Spanish Corporation Tax Act, multiplied by the proportion existing between the tax paid on home rentals and the total tax paid, shall not be eligible to the capitalisation reserve reduction.

The reduction established in article 23 of the Spanish Corporation Tax Act shall only be allowed in the case of the cession and transfer of the intangible asset stated therein, which include industrial design.Notwithstanding, under no circumstances may the reduction be applied to income from trademark transfers.

The requirement to set up the reserve stipulated in article 25.1 of the LIS is deemed to be met if the amount of the reduction in the tax base is reclassified from the voluntary reserves account to the capitalisation reserve account within the period stipulated in the commercial law, provided that at the end of the financial year the company has increased its equity with respect to that existing on the first day of the financial year in the terms defined in article 25 of the LIS.

The use of the PAYPAL system as a method of payment for services received complies with the proof requirement provided the legally-established conditions are met in terms of accounting registration, accrual, correlation of income and expenses and documentary proof, and provided that it is not deemed a non-deductible expense for tax purposes based on the application of any specific precept established in the Spanish Corporation Tax Act.

Commissions received by an entity for services rendered to buyers and sellers shall form part of the taxable base for corporate income tax purposes, without the purchase price charged by the entity and delivered to the seller in the name and on behalf of a third party being considered as consideration or income.