New transfer pricing documentation obligations applicable to all Corporate Income Tax´s tax payers with relevant intercompany transactions

Within the framework of the BEPS (Base Erosion & Profit Shifting) project undertaken by the OECD, Spain included some changes in its CIT regulations to adopt the recommendations of this project. The most relevant are without any doubt the Country-by-Country report and the new transfer pricing obligations of documentation, clearly focused by the Spanish tax Authorities on gaining more transparency on the business undertaken by multinational enterprises operating in Spain.

Regarding the new TP documentations obligations, from the first fiscal year beginning in 2016 all CIT tax payers with relevant intercompany transactions will see applied the new TP documentation obligations set forth in the new CIT regulations, which come into force in 2015.

Depending on the group´s net revenues corresponding to the previous year, tax payers will have different documentation obligations:

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Although with these new regulations the information requirements for tax payers with group´s net revenues lower than EUR 45 million are softened, these requirements are more extensive than the former regulations for tax payers with group´s net revenues equal or higher than the mentioned threshold