Model 289 FAQ
If they comply with all the requirements of section D.8 letter h) of Section VIII of the Annex of Royal Decree 1021/2015, they will be considered to be an Active Non-Financial Entity (NFE). For this purpose, it can be considered that the partial exemption applicable to these foundations and associations represents compliance with the requirement foreseen in the subsection ii) of this section (the previous is also applicable with regards to the subsection ii of section VI.B.4 letter i) of the Annex I of the FATCA Agreement between the USA and Spain).
a) When the entity holder of the account is a Non-Financial Company and it provides a declaration of tax residence in which the only missing data is that stating if it is active or passive.
No. The omission of stating the active or passive condition of the entity does not oblige the Financial Institution to block the account. Notwithstanding , the entity shall be required to complete the declaration with this information.
b) When the person who is owner of the account or holds control provides a declaration of tax residence in which the tax identification number is missing, if it has been issued.
Yes. The tax identification number is an essential piece of information in the aforementioned declaration and must always appear in it, in accordance with the provisions of section 2 of Section I of the Annex to Royal Decree 1021/2015. In this case, as well as blocking the account, the Financial Institution must report this situation, according to the country or jurisdiction of tax residence stated in the Tax return (unless it is aware or may be aware that this is incorrect or not reliable). Notwithstanding, this person shall be required to complete the declaration with this information.
In the event that the person who holds the ownership or control of the financial account continues without providing the required declaration, despite having made a total blockage of the same, the financial Institution must communicate the account with each and every person. of the data available at that time, as long as said circumstance continues. All of this, without prejudice to contacting said person to provide the aforementioned statement.
The gross income derived from the sale or amortisation of financial assets paid or entered in the account, i.e. for the value of the asset disposal or refund obtained, must be reported. The income produced from this transaction in terms of interest shall not be reported.
No. Financial accounts held by a capital company whose share capital is regularly traded on one or more recognized securities markets or a capital company that is a related entity of a capital company whose share capital is regularly traded on one or more recognized securities markets must not be reported. or several recognized securities markets. All of this in accordance with the definitions of Section VIII of the Annex to Royal Decree 1021/2015, specifically the one referring to “person subject to communication of information” within section D. Account subject to communication of information.
No, in no case should the SGIIC be considered reporting entities of form 289 in relation to the information on the participations in the Investment Funds they manage.
It is the Investment Funds themselves that must be considered reporting entities of model 289 (Reporting FI) in relation to the information on their holdings.
The SGIIC may simply submit form 289, on behalf of the Investment Funds, in those cases in which they have the status of electronic representative of the corresponding Investment Fund or social collaborator, although, as indicated, in these In these cases, the entity that must appear as a declarant will be, in any case, the corresponding Investment Fund.
Funds cannot be aggregated by countries, as, in accordance with the CRS, it must be registered as declarer of the fund, not the managing company.
No. The standards for the aggregation of the account balance do not apply to those that are excluded from the concept of financial account.
In the case of joint accounts, in order to declare the account balance in form 289, each owner will be attributed the balance or total value of the joint financial account at the end of the calendar year considered. It is also applicable for the purposes of aggregating balances, as stated in points 1 and 2 of section C of Section VII of Annex I of Royal Decree 1021/2015, of November 13, aggregation used to determine whether it is exceeded or not the thresholds established in said Annex.
Information regarding the other holders of the declared joint accounts for whom information should not be reported in application of the provisions of Royal Decree 1021/2015, of November 13, should not be included in form 289.
The Financial Institution may accept the client's declaration of tax residence unless it is aware or may be aware that this is incorrect or not reliable. The OECD has enabled a portal on automatic exchange of information in which you can consult the information of each country in relation to the issuance, obtaining and, where applicable, structure and operation of the corresponding NIF ( http:// www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/#d.en.347759 ).
It is considered that a Financial institution is aware, or may be aware that a declaration of tax residence is incorrect or not reliable if it does not contain a NIF and the information in the web portal states that the country in question issues a NIF to all its tax residents. Although the Financial Institution is not obliged to collate the format and other specifications of the NIF with the information in the aforementioned web portal, it can contrast this information in order to reinforce the quality of the information it reports and minimise the administrative charges derived from a possible administrative order for having reported an incorrect NIF (for example, by means of the use of programs that check the structure of the NIF).
Yes. This commitment must be included in the contents of the declaration of tax residence.
The Financial Institution may establish periodically (annually, for example) internal instructions and training to those employees who can be considered personal managers. This includes the file of replies of each personal manager stating that they are aware of their obligations and how to report any knowledge of fact on the tax residence of the account holders they have been assigned.
There is no specific limit. In any case, the responsibility for the correct compliance with said obligations falls on the financial institutions obliged to communicate information and both these and the third parties to whom they resort must be able to comply with the obligation provided for in section 6 of the Additional Provision. twenty-second of General Tax Law 58/2003.
No. A company whose gross income is attributable mainly to direct investment, reinvestment or negotiation in property is not an Investment Company, regardless of whether it is managed professionally by another company, since property is not considered financial assets.
If, on the other hand, a company (company A) participates in another company (Company B) that invests directly in property, this participation will be considered a financial asset and the gross tax base attributable to this participation must be taken into account for determining if company A complies with the criteria to be considered an Investment Company (Section VIII, section A.6 a) iii) or section A.6 b) of the Annex of Royal Decree 1021/2015).
Yes. The management requirement referred to in the aforementioned precepts also includes the cases in which a company has the discretionary power to manage the assets (fully or partially) of another company but does not manage the company itself.
The fact that passive income has not been generated from the asset during the corresponding period is not incompatible with the fact that the purpose of the asset is to generate passive income. The importance is that the aim of the asset is to generate passive income. For example, the balance of a current account must be considered an asset that generates passive income or the holding of which has the purpose of generating passive income (interest) even if it does not generate this income.
Technically, the label may be optional (as it involves a choice between one type of information or another, from several possible options), but if it is legally required that said information be recorded in Form 289, the financial institution must complete the Model with the information you have about that information field, in any case. That is, if you have it, you cannot choose whether to declare it or not.
Article 5 of Royal Decree 1021/2015, of November 13, establishes the information to be provided for each of the accounts subject to communication of information, being Annex III of Order HAP/1695/2016, of October 25, by which model 289 is approved, for the annual informative declaration of financial accounts in the field of mutual assistance, and by which other tax regulations are established, which details the content of the information that Model 289 must contain. For example, the type of account number must be provided, even if it is information that in Form 289 corresponds to an optional label.
No. The tax identification number that must be obtained and included in Form 289 (within the TIN field) is the one issued by the jurisdiction of your residence and not the TIN assigned by the Spanish authorities (the NIF).
Therefore, the TINs that must be completed in form 289, being those issued by the country or jurisdiction of the person or entity not resident in Spain, must conform to the structure established in said country or jurisdiction .
For these purposes, you can access the information consultation portals of each country in relation to the issuance, obtaining and, where appropriate, structure and operation of the corresponding TIN, through the section “Web portals for TIN validations (NIF). )” of Form 289 found in the AEAT Electronic Headquarters, whose link is:
In accordance with provisions of section 2 letter d) of the Annex of Royal Decree 1021/2015, the declaration of tax residence (declaration of the account holder) must contain a NIF. Thus, for the purpose of complying with the obligation of article 3 of Royal Decree 1021/2015, the determining of the tax residence of Persons who hold the control by means of a declaration of this type requires the Financial Institution to obtain the NIF (if it has been issued).
To complete the information related to the address of persons or entities not resident in Spain, the financial institution must proceed as follows, regardless of whether it is recorded in free or structured format:
You must complete the correct address in the jurisdiction in which you are resident in application of due diligence rules.
It will always be completed with correct data that corresponds to the complete address provided by whoever holds ownership or control of certain financial accounts.
Therefore, should not include alphanumeric characters or words (***, 000, zzzz, nnn, among others) that do not constitute or form part of the real address of the owner or person that exercises control.
The obligation to provide information related to the address is established in article 5.1 a) of Royal Decree 1021/2015, of November 13, and the address associated with each of the accounts subject to communication of information must be provided. The specific detail of the information to be provided is found in number 18 of Annex III of Order HAP/1695/2016. As indicated in the Technical Manual for the presentation of Model 289, this information must be recorded:
In structured format , through the fields established in this regard, or
In free format , if the structured format is not possible or when the fields of the latter do not reflect all the casuistry of the address in the country of residence of the person or entity not resident in Spain that holds ownership or control
The Technical Manual for the presentation of Form 289, which is available at the AEAT Electronic Headquarters within the section "Information on the presentation through Web Service of Form 289", is accessible through the following link:
In accordance with the OECD Common Reporting Standard for the Automatic Exchange of Financial Information, there is no general obligation to carry out a manual search of this type. The general requirement in this procedure is that the address is based on documentary evidence. If the Financial Institution has maintained a notation of the documentary evidence on which the address is based or has policies and procedures in place to ensure that the updated address is the same as the address that appears on the documentary evidence provided, it has met the requirement that domicile be based on documentary evidence.
Yes. It may be the case that the Financial Institution has two addresses that meet the requirements of this procedure, for example in the case that the account holder works and lives half of the year in foreign country A and half of the year in foreign country B. In this case a declaration of residence could be requested from the account holder or the account holder could be considered to be a tax resident of both countries A and B.
The outline for the presentation of Form 289 CRS, based on the outline of the OECD, is prepared to declare several tax residences, if required.
The Financial Institution is not obliged to provide tax advice to its clients or to carry out a legal analysis to verify the reasonableness of the declaration of tax residence. The Financial Institution can rely on the declaration of tax residence of the client unless it is aware, or may be aware that it is incorrect or not reliable ("reasonableness" test), which is based on the information obtained on the opening of the account, including any document obtained in the application of the procedures foreseen in accordance with Act 10/2010, of 28 April, on the prevention of money laundering and terrorist financing and its implementing regulations.
In the Comments of the OECD Automatic Exchange of Information Standard you will find examples of the application of the "reasonableness" test.
Declarations of tax residence must comply with the requirements set forth in section 2 of Section I of the Annex of Royal Decree 1021/2015. Regarding the form in which this must be carried out, in accordance with this precept, any form is accepted, including electronic and telephone channels, provided that the Financial Institution holds and keeps records of its content and date of issue and can accredit if it has been carried out by the account holder or the representative to this effect.
No, the financial institution must evaluate the statement received from an owner with all the means at its disposal, so that it can achieve adequate assurance that the validity and reasonableness of the statement is proven.
In this sense, the mere fact that an entity is listed in the FATCA GIIN (Global Intermediary Identification Number) cannot be considered sufficient evidence of the account holder's status as a financial institution.
Section A of Section VII of Royal Decree 1021/2015, of November 13, establishes that when applying due diligence procedures, it must be taken into account that « When financial institutions obtain statements from the owner or documentary evidence , with respect to those that they know, or may come to know, are incorrect or unreliable , they may not rely on them in order to determine the client's condition and must request a new declaration from the owner or additional documentation that justifies its condition.
Yes, in the cases and with the conditions described in section B.6 of Section III of Annex I “Due diligence rules”, of Royal Decree 1021/2015.
In this way, if the financial Institution has the declarations and/or documentary evidence described in the aforementioned section B.6 of Section III of the Annex, the tax residence that results from these will be the one that prevails, instead of the one that would have result of applying the indication system of section B.2 of said Section III, based on the data available to the Financial Institution in its electronic files.
The above also applies to the Enhanced review procedures for higher value accounts , under the terms of section C.5.b) of Section III.
Additionally, in the event that the only resulting country of tax residence is Spain, it is recalled that, in no case, will 289 financial accounts whose ownership is held by people whose only country of tax residence is Spain be included in the model.
The assumptions and conditions provided for in section B.6. of Section III of Annex I of Royal Decree 1021/2015, depend on the type of evidence available, requiring, in some cases, a single type of document from among those indicated in the Royal Decree or, in other cases, a combination of documents. In this way, the Financial Institution will not have to treat the account holder as a tax resident in the country or jurisdiction that results from the indication system (section B.2) if :
Account holder information includes a current mailing or street address in that country or jurisdiction, one or more telephone numbers in that country or jurisdiction (and no telephone number in Spain), or standing orders (relating to financial accounts other than deposit accounts) to transfer funds to an account opened in that country or jurisdiction, and the financial institution obtains, or has previously reviewed and retains on file:
Declaration by the account holder from their country(ies) or jurisdiction(s) of tax residence that does not include that country or jurisdiction, AND
Documentary evidence confirming the country or jurisdictions of tax residence included in said declaration.
The account holder information includes a current power of attorney or signature authorization in favor of a person domiciled in that country or jurisdiction, and the financial institution obtains, or has previously reviewed and maintains in its files:
Declaration by the account holder from your country(ies) or jurisdiction(s) of tax residence that does not include that country or jurisdiction, OR
Documentary evidence that determines the tax residence(s) of the account holder that is (are) different from that country or jurisdiction.
This requirement will be considered not met when the holder, in order to open the account, is obliged to provide the Financial Institution with new, additional or amended information on the same as a result of a legal, statutory, contractual or similar obligation. (See Comment 82 of Section VIII of the OECD Common Reporting Standard).
When entering or not recording said value in Form 289, it must be taken into account that:
- The account number is not limited to the IBAN or ISIN codes , but may be different depending on the category of financial account in question.
- Only in the event that the financial institution does not have any unique identifier, functional equivalent or numbering that allows it to identify the declared financial account, must it enter the characters "NANUM".
- If “NANUM” was recorded due to having the information aggregated by client in its databases, the financial institution must provide the identifying numbers of the accounts individually considered as this aggregation is not correct according to with the applicable regulations.
In short, the use of the value “NANUM”, must be considered exceptional, being recorded only in those cases in which the financial institution does not have the identification code of the financial account in question.
The regulatory basis for the above is found in the following sections:
Article 5.1.b) of Royal Decree 1021/2015 , of November 13, which establishes the obligation to identify the tax residence of the people who hold ownership or control of certain financial accounts and to report on them in the field of mutual assistance, when determining the information that must be provided with respect to each of the accounts that are declared, among others, includes the following: "b) The account number ."
Similarly, Order HAP/1695/2016 , of October 25, which approves model 289, annual informative declaration of financial accounts in the field of mutual assistance , and by which other tax regulations are modified, in Annex III, section 7, the content of the declaration includes:
"7. Account number , indicating whether it is an IBAN code or other bank account number, an ISIN code or other securities identification number, or whether it is another identifier, such as for example the reference number of an insurance contract. When the declared financial account has an IBAN or ISIN code, it must be entered in form 289."
Account number means, as stated in section E of Section VIII of the Annex to Royal Decree 1021/2015:
"6. "Account number" means the identification number assigned by the financial institution to distinguish it from other accounts opened in it, including an equivalent functional element.
Therefore, the account number is not limited to the IBAN or ISIN codes, but can be different depending on the category of financial account, and only in the event that no unique identifier of the declared financial account is available. , you must enter the characters "NANUM" ( no account number ).
According to the Second Additional Provision of Royal Decree 1021/2015, its standards must be interpreted in accordance with the OECD Comments on the Model Agreement for the Competent Authority and the Common Information Communication Standard, in whose Annex 3 "User Guide to the Standard Common Report", section IVd. Account Number is specified:
"The account number used by the Financial Institution to identify the account in question must be provided. If the Financial Institution does not have an account number, the functional equivalent used by the financial institution to identify the account will be provided. Required for financial institutions that have an account number (including alphanumeric identifiers).
For example: The account number may be that of a Custodial Account or a Deposit Account; ii) the code (ISIN or other) related to a Debt or Equity Participation (if not held in a Custody Account), or iii) the identification code of a Cash Value Insurance Contract or of an Annuity Contract.
In exceptional cases , when there is no account numbering system, "NANUM" will be used to indicate the absence of the account number, since this is a Validation element. This account number format is the same as that contemplated by FATCA and can be used in both structured and free format account numbers. Additionally, a non-standard account identifier or insurance contract number may be included in this field."
Finally, in the event that they have not provided an account number because they have submitted the information added by client , in accordance with the applicable regulations, they should provide the identification numbers of the accounts individually considered , the aggregation by clients not being correct.
A substantial number of jurisdictions offer "Citizenship by Investment" (CBI) and "Residency by Investment" (RBI) schemes and allow foreign individuals to obtain citizenship or temporary or permanent residence rights on the basis of local investments.
CBI/RBI schemes can be misused to undermine CRS due diligence procedures. This may result in inaccurate or incomplete reporting under the CRS, particularly when not all jurisdictions of tax residence are disclosed to the Financial Institution.
Such a scenario could arise when a person does not actually reside or not only in the CBI/RBI jurisdiction, but instead declares himself to be resident for tax purposes only in the said jurisdiction and provides his financial institution with the supporting documentation issued under the CBI scheme. / RBI (e.g. a residence certificate, ID card or passport).
Not all RBI/CBI schemes pose a high risk of being used to circumvent CRS. Schemes that are potentially high risk for these purposes are those that give the taxpayer access to a personal income tax rate of less than 10% on offshore financial assets and do not require a significant physical presence of at least 90 days in the jurisdiction offered by the CBI/RBI Scheme.
Where CBI/RBI schemes meet both criteria, but the residency documentation provided to successful applicants is clearly identified as being issued under the respective CBI/RBI scheme, such specific residency documentation should only be perceived as potentially high risk in the context CRS due diligence procedures, and be subject to additional guidance for financial institutions, detailed below.
These schemes and the corresponding residency documentation are listed in the table below.
CBI/RBI Scheme Name
|Panama||Reforestation Investor Permit||Panamanian identification cards with reference code “PRP-FOR”|
|Panama||Economic solvency permit||Panamanian identification cards with reference code “PRP-SEP”|
|Panama||Friendly Nations Permit||Panamanian identification cards with reference code “PRP-PA”|
Under Section VII of the CRS, a financial institution may not rely on a self-certification or documentary evidence if the financial institution knows, or has reason to know, that the self-certification or documentary evidence is incorrect or unreliable. The same applies with respect to high-value pre-existing accounts where a relationship manager has actual knowledge that the self-certification or documentary evidence is incorrect or unreliable.
When determining whether a financial institution has reason to know that a self-certification or documentary evidence is incorrect or unreliable, it should take into account all relevant information available to the financial institution, including the results of the OECD CBI/RBI risk analysis. As a result, when, taking into account all relevant information, the facts and circumstances would lead the Financial Institution to have doubts about the tax residence(s) of an Account Holder or the Person exercising the control thereof, should take appropriate measures to determine the residence of such persons.
To the extent that the doubt is related to the fact that the account holder or the person exercising control of the account proves their residence in a jurisdiction that offers a potentially high-risk CBI/RBI scheme, the institutions Financial institutions may consider asking more questions, including:
- Did you obtain residency rights under a CBI/RBI scheme?
- Do you have residency rights in any other jurisdiction(s)?
- Have you spent more than 90 days in other jurisdictions during the previous year?
- In which jurisdiction(s) have you filed your personal tax returns during the previous year?
The answers to the questions above should help financial institutions determine whether the self-certification provided or documentary evidence is incorrect or unreliable.
Under no circumstances will model 289 accounts be included whose ownership or control is held by persons whose only jurisdiction of tax residence is Spain, even if they are undocumented accounts for which the financial institution must or may know that the ownership or The control of said accounts corresponds to a tax resident in Spain.
No. According to the definition contained in point 5 of section D of Section VIII of Annex I of Royal Decree 1021/2015, "persons exercising control" means the natural persons who control an entity. Therefore, an entity cannot be identified as the person exercising control in the indicated case.
In the event that there is more than one person exercising control (or controlling person) for the same account-holder and jurisdiction, two aspects must be taken into account:
The scheme requires that all controlling persons be declared in the same DocRefId of the account-holder, using as many tags as controlling persons have. That is, not as many records (DocRefId) should be included as different controlling persons correspond to the same owner, account and jurisdiction.
ONLY the data of that controlling person must be included on the label of each controlling person, not the rest. That is, each tag is limited to a single controlling person.
To know the technical details of how the above must be declared, consult section Functional specification of the presentation message of the Technical Presentation Manual of model 289 , available at the AEAT electronic headquarters.
In cases in which we are faced with an “undocumented financial account” we will proceed to indicate all the data available to the financial institution at that time, as long as said circumstance remains. In no case will 289 accounts whose ownership or control be held by persons whose only jurisdiction of tax residence is Spain be included in the model.
This will apply generally and specifically in the following cases:
- Pre-existing accounts of lower value of natural persons (section B.5 of Section III of the Annex to Royal Decree 1021/2015): If the financial institution does not apply the domicile procedure and the only evidence discovered in the electronic search procedure to determine tax residence has been an instruction to withhold mail or an address to receive mail, provided that, subsequently, neither It was not possible to obtain any evidence with the paper search and the attempt to obtain from the account holder a declaration or documentary evidence to determine his tax residence was unsuccessful. This procedure must be repeated when there is a change in circumstances or when the account becomes a high value account. However, the account will have to be declared with all the information available every year as long as these circumstances continue.
Pre-existing accounts of greater value of natural persons (section C.5 c) of Section III of the Annex to Royal Decree 1021/2015): When the only indication discovered in the enhanced review of these accounts to determine the tax residence of their owner has been an instruction for the retention of correspondence or an address for the receipt of correspondence provided that, subsequently, it was not possible to obtain a declaration or evidence documents to determine your tax residence. The financial institution must apply the enhanced review procedures of the Royal Decree every year until the account becomes documented. However, the account will have to be declared with all the information available every year as long as these circumstances continue.
In the event that on the last day of the calendar year considered, an account is blocked in application of section 5 of the twenty-second Additional Provision of Law 58/2003, of December 17, General Tax and provided that it is not provided of information related to the country of residence of the person who owns or controls the account, all of this and without prejudice to the financial institution continuing to try to obtain the declarations that are required.
The account must not be declared in Form 289 if it is found that the requirements demanded by Royal Decree 1021/2015, of November 13, are met to consider it as one of the excluded accounts defined in section C.17 of Section VIII of the Annex I
Thus, in letter d) of section C.17 of Section VIII of Annex I, an excluded account is considered “an account maintained solely by the relic estate if the documentation for that account includes a copy of the decedent's will or death certificate . ”
Please also take into account what is indicated in number 92 of the Comments to Section VIII of the Common Information Communication Standard (CRS):
92 Pursuant to subsection C(17)(d), an account related solely to the estate of an individual may be an Excluded Account if the documentation for that account includes a copy of the will or death certificate of the deceased . To this end, the Reporting Financial Institution must consider that this account retains the status it enjoyed prior to the death of the Account Holder until the date on which a copy of the aforementioned documentation is obtained. To determine what is meant by “succession”, reference should be made to the specific legislation in this area in each jurisdiction that governs the transmission or inheritance of rights and obligations in the event of death (such as universal succession rules). .
You can access these Comments through the section “ Additional information on the CRS in the OECD ” which is available on the OECD Electronic Office.
In short, the financial accounts of deceased clients must be included in Form 289 if the requirements described above are not met.
Yes, it is compulsory.
As a consequence of the modification of article 4 of RD 1021/2015, of November 13 (RD of CRS), Order HAP/1695/2016, of October 25, of model 289, is also modified to include the obligation to present of the informative declaration model 289 even in cases of non-existence of accounts to be reported by the financial institution obliged to declare after the application of the due diligence rules.
In these new cases of uncommunicated accounts declaration, the content of model 289 is limited to the concepts included in numbers 1 to 5 of Annex III of Order HAP/1695/2016, as well as the new concept introduced by this order. “6.2. Declaration without accounts to communicate” (*).
To facilitate the presentation of form 289 “without accounts to communicate”, a simple Form has been enabled that will be available in the Electronic Office.
However, this presentation can also be done through the already enabled Web Service. More information:
In accordance with the provisions of article 5.1 d) of Royal Decree 1021/2015, of November 13, which establishes the obligation to identify the tax residence of the people who hold ownership or control of certain financial accounts and to report on them in the field of mutual assistance, among the information to be provided corresponding to each of the accounts subject to communication of information must include the balance or value of the account at the end of the calendar year considered . In the case of a insurance contract with cash value or an annuity contract, the cash value or surrender value will be taken.
Without prejudice to how the cash value must be determined in accordance with the definition provided in Section VIII.C.8 of the Annex to Royal Decree 1021/2015, in accordance with Section VIII. C. 6 and 8 of the aforementioned royal decree, both in the annuity contract and in the insurance contract with cash value, for the purposes of calculating the balance or value of the financial account, the financial institution obliged to communicate information may use , where applicable, the capitalization value or the redemption value referred to in Order EHA/3481/2008, of December 1, approving model 189 of the annual informative declaration about securities, insurance and income.
For these purposes, Law 11/2021, of July 9, on measures to prevent and combat tax fraud, transposing Council Directive (EU) 2016/1164, of July 12 of 2016, which establishes rules against tax avoidance practices that directly affect the functioning of the internal market, modifying various tax rules and the regulation of gambling , has modified article 17 of Law 19/1991, of June 6, on the Wealth Tax , relating to life insurance and temporary or life annuities to which Order EHA/3481/2008, of in accordance with the following wording that must be taken into consideration, if applicable, for the purposes of determining the redemption or capitalization value:
One. Life insurance will be computed at its surrender value at the time of accrual of the Tax.
However, in cases in which the policyholder does not have the power to exercise the full right of redemption on the date of tax accrual, the insurance will be computed for the value of the mathematical provision on the aforementioned date in the tax base of the policyholder.
The provisions of the previous paragraph will not apply to temporary insurance contracts that only include benefits in the event of death or disability or other complementary risk guarantees.
Two. Temporary or life annuities, constituted as a consequence of the delivery of capital in money, movable or immovable property, must be computed by their capitalization value on the date of accrual of the Tax, applying the same rules that are established for the constitution of pensions. in the Tax on Property Transfers and Documented Legal Acts.
However, when income, temporary or life, is received from life insurance, these will be computed by the value established in section One of this article."
No. The amount of the “Inflow of funds” field of form 291 ( annual informative declaration of the Income Tax of non-residents. Accounts of non-residents without permanent establishment ) does not correspond to what must be declared in the "Interest" field of Form 289.
This is because the "Fund Inflows" field is defined in model 291 as the total annual amount for the sum of notes to the credit of the account or sum of credits, which does not strictly correspond to the concept of interest. , these being the total gross amount of interest paid or recorded in each case in the account (or in relation to the account) during the calendar year.
Section 7 of Additional Provision 22 of Law 58/2003, of December 17, General Tax, establishes an obligation of communication between parties (declarants and declared parties), providing the following:
“ Any financial institution obliged to communicate information in accordance with the provisions of this provision must inform each natural person subject to communication of information that the information about them that is the subject of said communication obligation will be communicated to the Tax Administration and transferred to the relevant Member State in accordance with Directive 2011/16/EU and the international agreements indicated in this provision. Such reporting must be made no later than January 31 of the calendar year following the first year in which the account is a reportable account. Likewise, the financial institution will provide the natural person with sufficient advance notice of all the information that they have the right to receive so that they can exercise their right to the protection of their personal data and, in any case, before the information collected by it is provided to the Tax Administration ”.