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Tax news for financial year 2018

Tax

The following regulations were published in the Official State Gazette on 30th December 2017:

1.- Royal Decree 1074/2017 amending the Personal Income Tax Regulation, the Corporate Income Tax Regulation and the Inheritance and Gift Tax Regulation.

2.- Royal Decree 1075/2017 amending the Value Added Tax Regulation.

The amendments approved by these Decrees shall apply to the financial years starting from 1st January 2018 and include the following main amendments:

 

A.- CORPORATE INCOME TAX

(a) Wider information and documentation on linked organisations and transactions is requested, and also on the obligation to provide information  “ country by country” according to OECD criteria.

(b) The cases not affected by the obligation to withhold taxes are extended:

  • There shall be no obligation to withhold taxes on amounts paid into pension funds from open pension funds and pension plans affiliated to other pension funds.
  • No tax withholding is extended to include incomes arising from the transfer or reimbursement of SICAV shares.


B.- VALUE ADDED TAX

Amendments to the immediate supply of information (ISI), including the following new tax issues:

  • Upon authorisation from the Inland Revenue, possibility for the information sent by the system not to contain all mentions and information contained in the tax registry books.
  • Possibility for taxpayers who voluntarily choose ISI to file their returns quarterly.

 

C.- PERSONAL INCOME TAX  

1. Work tax-exempt income for company canteen expenses

The daily amount exempt of the indirect canteen service provision formulas, as food vouchers or similar documents, cards or any other electronic means of payment given to the employee to fulfil this need, is increased.

The daily amount exempt is increased from 9 euros to 11 euros a day.

 

2. Study and training grants for researchers

The amounts exempt for grants are increased in the following cases:

  • As a general rule, 6,000 euros a year.
  • When the grant is used to offset transport and accommodation expenses involved in official studies within the education system, up to a master’s degree or equivalent, 18,000 euros per year. When it involves studies abroad, 21,000 euros per year.
  • Where the purpose of the grant is to study a PhD, up to a maximum sum of 21,000 euros per year if studied in Spain. If studied abroad, up to a maximum sum of 24,600 euros per year.

 

3. Withholdings

As a result of the consideration of capital gains of the conveyance of pre-emptive rights as of 30th December 2017, the withholdings to be made are regulated:

  1. All capital gains arising from the conveyance of the pre-emptive rights set forth in Letters a) and b), Section 1, of Article 37 of the Personal Income Tax Law (LIRPF) are subject to withholdings.
  2. The depositary bank and, in its absence, the financial intermediary or notary public involved in the transfer shall be liable to withhold or deposit on account.
  3. The obligation to withhold or deposit on account shall arise as soon as the conveyance is completed.
  4. A 19 percent withholding shall be made.

 

4. Amendment of self-assessments

A new way of presenting a request to amend a self-assessment is introduced to solve a mistake that would have jeopardised the taxpayer using the tax return form itself.

 

D.- INHERITANCE AND GIFT TAX

Two changes are approved that affect the return and management of the Tax: obligation to include the land registry (town hall) data on transferred property in the tax return. Furthermore, the possibility of proving the fulfilment of the obligations with regard to this tax by way of a certificate issued by the Inland Revenue is foreseen.