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Tax Insights
from Transfer Pricing
Spain: Government announces intent
to adopt country-by-country
reporting requirements
January 27, 2015
In brief
Spain's government has announced its intent to adopt the Organisation for Economic Co-operation and
Development’s (OECD) recommended country-by-country (CbC) reporting requirements. Details are to
be included in the draft Corporate Income Tax Regulations that are due to be issued in the upcoming
months. The adoption of CbC reporting will have a profound influence on how companies approach and
deal with their transfer pricing documentation.
In detail
During 2014, the Spanish
government worked on a
comprehensive tax reform
covering a number of different
taxes, including corporate
income tax.
On November 27, 2014,
Congress approved the final text
of the Corporate Income Tax
Law which came into force on
January 1, 2015. The Spanish
government is currently
working on the draft Corporate
Income Tax Regulations, which
are expected to be published
during the next few months and
approved during the first
semester of 2015.
At a recent event Mr. Miguel
Ferre, Secretary of State for
Taxation and President of the
Spanish Tax Agency, announced
the intent that the coming
Corporate Income Tax
Regulations will include the
obligation for multinationals to
provide information (data)
relating to corporate taxpayers
in each of the jurisdictions in
which they operate, in line with
the OECD’s Base Erosion and
Profit Shifting (BEPS) initiative.
With the inclusion of this
obligation, the Spanish
Authorities will be addressing
and endorsing the
recommendations made by the
OECD in September 2014, even
though the OECD itself has not
yet provided full clarification
about how these requirements
should be implemented in a
coordinated international
manner.
expected to closely follow the
recommendations made by the
OECD. However, details relating
to the extent of the obligation, to
which corporate taxpayers this
will apply, and how this
information will be shared with
other Tax Administrations has
yet to be clarified. Furthermore,
although the Regulations will
come into force following its
publication around June 2015, it
is expected that CbC reporting
will first be requested for fiscal
year 2016, implying that this
information will be available to
the Spanish Tax Administration
by June 2017.
More details will follow as the
draft regulations are issued,
together with confirmation as to
when they come into force.
The content of this CbC
reporting requirement is
www.pwc.com
Tax Insights
The takeaway:
Spanish corporate taxpayers will need
to be alert to the details in the soonto-be-issued draft Corporate Income
Tax Regulations to assess the impact
of CbC reporting adoption. It is
recommended that taxpayers prepare
an action plan on how to comply with
the foreseeable new requirements,
together with assessing and managing
any issues highlighted by the new
disclosure.
Let’s talk
For a deeper discussion of how this issue might affect your business, please contact your regular PwC contact or one of the
individuals listed below:
Transfer Pricing
Javier Gonzalez Carcedo, Madrid
+34 915 684 542
[email protected]
Michael Walter, Madrid
+34 915 684 464
[email protected]
Valeri Viladrich, Barcelona
+34 932 532 042
[email protected]
Transfer Pricing Global and US Leaders:
Isabel Verlinden, Brussels
Global Transfer Pricing Leader
+32 2 710 44 22
[email protected]
Horacio Peña, New York
US Transfer Pricing Leader
+1 646 471 1957
[email protected]
SOLICITATION
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information
contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness
of the information contained in this publication, and, to the extent permitted by law, PwC does do not accept or assume any liability, responsibility or duty of care for any
consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2015 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see
www.pwc.com/structure for further details.
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