Tax debts in Spain undergoing a voluntary or enforceable payment period may be deferred or paid by instalments, after having submitted the taxpayer’s application, if a business’ financial position prevents it from making payments within the terms required by the Revenue Office.
The deductibility of subsistence allowances and travel expenses in Spain entails important savings for companies or self-employed workers. However, this requires compliance of a series of conditions and document requirements that need to be taken into account, which we describe in this article. We shall explain all the aspects pertaining to subsistence allowances and transportation costs, food and board, according to the two most relevant taxes for companies in Spain, Corporate Tax and Value-Added Tax.
Entities with consolidated worldwide net turnover exceeding 750 million euros are obliged to file Form 231 from the day following the end of the tax period to which the information to be supplied refers until the following twelve months.
Decision V0066-18 dated 17 January 2018 sets forth that a server located in Spain may constitute a permanent establishment in Spain for the purposes of Corporate Tax.
The information contained in the documentation to be made available to the taxpayer in the event of a request from the Tax Agency, varies depending on the net turnover of the companies.
On 21 March 2018, the European Commission put forward a proposal for a Community Directive to regulate the taxation of companies with a significant digital presence and adapt the concept of Permanent Establishment to the Digital sphere (Digital Permanent Establishment).