Invest in The Basque Country

Basic guide to labour, commercial, accounting and tax regulations

Sayma SPRI
Other issues2019-05-17T12:24:51+02:00

OTHER ISSUES

01. TRANSFER PRICE

In general, the income tax regulations in the three provinces establish the obligation not only to value the transactions carried out between the companies forming part of a Group on the market, but also the obligation to document them, in compliance with certain conditions.

Such documentation obligations must be met in order to prepare the corresponding Transfer Pricing reports, which must be made available to the tax administration, which may request them at any time.

There is also an obligation to report the breakdown and quantification of these related-party transactions in the annual accounts, which must be filed with the Mercantile Register and in the corporation tax of all the group companies.

02. CUSTOMS DUTIE

Since 1993, with the creation of the European single market, borders and therefore customs duties within Europe have disappeared. There is free movement of goods, capital and people within Europe.

In general, the customs duties applied in the Basque Country and the rest of Spain are customs duties paid on imports, when goods are cleared through customs from non-European third countries.

There are lower customs duties for storage or warehousing rights and the sale of abandoned goods.

In most cases, the importers are obliged to pay the customs duties payable.

Customs regulations are harmonised throughout Europe, with the Goods Classification System and the European Economic Community (“EEC”) tariff (TARIC).

03. TAX CONSOLIDATION REGIME

Companies with tax residence in the Basque Country that belong to the same mercantile group may choose to pay corporation tax jointly. As a requirement, the parent company of the group must have a direct or indirect holding of at least 75% of the share capital (70% if listed) in those companies on the first day of the tax period in which this special tax regime applies.

The parent company of a tax consolidation group is allowed to be non-resident in Spanish territory. Thus, although the parent company will not form part of the group, the consolidation of subsidiaries (at least 75%, or 70% in the case of listed companies) resident in Spain is permitted. Thereby, it will be possible for several entities subject to Basque provincial legislation under the common control of a non-resident company to form a tax group.

04. INTERNATIONAL AGREEMENTS AND TREATIES TO AVOID DOUBLE TAXATION

Spain has signed agreements to avoid double taxation with 85 European and non-European countries, following the OECD Model Tax Convention. The fundamental objective of these agreements is to avoid double taxation on income generated in these countries and to avoid tax fraud.

COUNTRY

Albania

Croacia

Italia

Alemania

Cuba

Jamaica

Andorra

Ecuador

Japón

Arabia Saudita

Egipto

Kazajistán

Argelia

Emiratos Árabes Unidos

Kuwait

Argentina

Eslovaquia

Letonia

Armenia

Eslovenia

Lituania

Australia

Estados Unidos

Luxemburgo

Austria

Estonia

Macedonia

Barbados

Filipinas

Malasia

Bélgica

Finlandia

Malta

Bolivia

Francia

Marruecos

Bosnia y Herzegovina

Georgia

México

Brasil

Grecia

Moldavia

Bulgaria

Holanda

Nigeria

Canadá

Hungría

Noruega

Catar

India

Nueva Zelanda

Chile

Indonesia

Omán

China

Irán

Pakistán

Chipre

Irlanda

Panamá

Colombia

Islandia

Polonia

Corea del Sur

Israel

Portugal

Costa Rica

Serbia

Reino Unido

República Checa

Sudáfrica

Turquía

República Dominicana

Suecia

Estados de la antigua URSS

Rumanía

Suiza

Uruguay

Rusia

Tailandia

Uzbekistán

El Salvador

Trinidad y Tobago

Venezuela

Senegal

Túnez

Vietnam

Singapur