Form 232 – New informative declaration of related-party transactions

If your company carries out related-party transactions, it is essential that you take into account that the Treasury has just approved the presentation of a new information model. This model is presented during November and is mandatory if the requirements are met.

The model in question is Form 232, which is an informative declaration of related-party transactions and, operations and situations related to countries or territories classified as tax havens.

As established by the Order, the declaration of related-party transactions, which was included in Form 200 of the Corporate Tax declaration, will be made in the new Form 232 for years beginning on or after January 1, 2016.

Taxpayers

They are obliged to present the declaration in the following cases:

• Those who carry out operations with the same linked person or entity, provided that the amount of the set of operations exceeds €250,000, in accordance with the market value.
• Those who carry out specific operations, provided that the joint amount of this type of operations exceeds the €100,000. The operations considered specific are the following:
  • Operations carried out with persons or entities residing in tax havens.</ li>
  • Those carried out by natural persons to whom the objective estimation method (modules) results. With companies in which said natural persons or their relatives have a percentage equal to or greater than 25% of the capital or own funds.
  • The business transfer operations or securities or shares representing participation in the own funds of entities not admitted to trading on regulated securities markets.
  • The operations on real estate or assets that are considered intangible.
• Regardless of the consideration of the set of operations carried out with the same person or related entity, carry out operations of the same nature and method used, whose total amount is greater than 50% of the entity’s turnover.

Exemptions

It will not be mandatory to include in the new model those linked operations that:

• They are integrated into the same tax consolidation group;
• Be carried out with members or with other entities of the same fiscal consolidation group by economic interest groups and temporary unions of companies; and
• They are made in the context of public offers for sale or public offers for the acquisition of securities.< /li>

Other content

The new disclosure statement will not only cover the controlled transaction information table, but also the following tables:

• “Operations with related persons or entities in the event of application of the reduction of income from certain intangible assets”; and
• “Operations and situations related to countries or territories considered tax havens.”

Form and deadline for submission

The presentation of the model must be carried out “during the month following the ten months following the conclusion of the tax period to which the information to be provided refers.” In this sense, if the tax period coincides with the calendar year, the presentation should be made during November of the following fiscal year.

For periods that began and ended before December 31, 2016, it is specifically indicated that the deadline for submitting the model will be during November 2017.

The presentation must be made electronically.