From fiscal year 2016, those Spanish CIT tax payers that belong to a group (in terms of the CIT Law), which will have a net revenue higher than EUR 750 million shall review should they are obliged to submit the Country by Country (CbC) report to the Spanish tax Authorities.
The tax payers subject to this obligation are the following:
1. Spanish resident entities that are dominant of a group and simultaneously are not dependant on another resident or non-resident entity;
2. Those Spanish resident entities that depend (directly or indirectly) on non-resident entities in Spain and simultaneously do not depend on another entity or permanent establishment of non-resident entities, upon one of the following circumstances takes place:
a) The dominant company of the group designates the Spanish company to elaborate this information.
b) Do not exist a similar CbC report obligation in the country where the dominant company is tax resident.
c) Do not exist an exchange tax information agreement with respect of this information between Spain and the country where the dominant company is tax resident.
d) Whilst existing an exchange tax information agreement with respect of this information, there is a breach of this agreement being published by the Spanish tax Authorities to the Spanish resident entities or permanent establishments.
Those Spanish entities that belong to groups subject to the CbC obligation set forth in the CIT Law must communicate to the Spanish tax Authorities the identification and tax resident country of the entity obliged to perform this information.
This communication must be carried out before the end of the tax period in which the information is referred. For those Spanish tax payers with fiscal year coinciding with the natural year, this communication must be performed up to 31 December of every year.
On its part those Spanish tax payers obliged to submit the CbC report in Spain will have a 12-month period after the end of the tax period to comply with this obligation.