Representation and joint and several liability in the case of Non-Resident Income Tax

Obligation to appoint a representative

Regulations: Article 10 IRNR Act (drafted by second article Act 11/2021, of 9 July) , on measures to prevent and combat tax fraud, with effects on tax periods starting from 1 January 2021)

Taxpayers resident in another Member State of the European Union (EU) or the European Economic Area (EEA) that are not a State EU member, in the latter case, when there are regulations on mutual assistance in matters of tax information exchange and collection, (see Appendix V) do not have to appoint a representative residing in Spain and will act before the Tax Administration through the persons who hold they represent them in accordance with the general rules of legal and voluntary representation.

On the other hand, taxpayers residing in third countries (not resident in another Member State of the European Union or the European Economic Area) that it is not an EU Member State where there are regulations on mutual assistance in matters of information exchange), they will be obliged to appoint, before end of the period for declaring the income obtained in Spain, an individual or legal entity residing in Spain, to represent them before the tax Administration in relation to its obligations under this Tax in the following cases:

• When they operate through permanent establishment.

• When performing service, technical assistance, installation or assembly services derived from engineering contracts and, in general, from activities or economic holdings in Spain without permanent establishment mediation, whose taxable base is the difference between full income and personnel expenses, material and supplies procurement.

• In the case of an entity in the income allocation system established abroad with "presence in Spanish territory."

• When, due to the amount and characteristics of the income obtained or the possession of a property in Spanish territory, the Tax Agency requires it.

• In the case of residents in countries or territories with which there is no effective exchange of tax information (with effect from 11 July 2021, references made to countries or territories with which no effective exchange of information is understood to be made to the definition of non-cooperative jurisdiction. See Appendix IV), which are holders of assets located or rights that are fulfilled or exercised in Spanish territory, excluding securities traded on official secondary markets.